All Forum Posts by: Karl Hudson

@Tyler Gibson Thank you Tyler I will definitely look into this suggestion. Appreciate you taking the time!

I am seeking a CPA who is well versed and experienced in real estate transactions for investors. If they also have experience in the entertainment/music industry as well, that would be a major bonus. Preferably in the Orlando area. Could be remote however. Any help is greatly appreciated! Thank you!

I currently own two rental properties. I also own an unrelated business that is an LLC Partnership made up of four partners. The partnership would like to go in with me on my next rental property purchase. I feel like this may be a silly question, however I am looking for clarification. Would the LLC be able to co-sign as an LLC or would all the partners have to co-sign individually? What are my options? Any advice appreciated. Thanks you so much!

Karl Hudson

I apologize for the delay. It's been a chaotic week over here. This is great!! Good information and advice. I am going to give it go with some of the suggestions here and see what I can come up with. Thank you all for taking the time. I really appreciate it. 

Any advice on this would be greatly appreciated. Currently have two rental properties. One of which is free and clear, paid off, no mortgage. I want to pull $50,000 in equity out of that home to purchase a third rental property. So it would be a small mortgage, 30 years fixed. My numbers and credit score are good. However, went through the whole process with one bank only to run into an issue with the underwriter. My AGI for 2015 is great. My 2014 AGI is hurting me as it is almost a $20k difference. My financial performance was great in 2014 but I had significant deductions that year. This particular bank takes your AGI from the past two years, and averages them to determine your monthly income and DTI (debt to income ratio). Obviously this doesn't accurately represent what I actually make. It's almost a $2,500 difference on my monthly income, which makes a huge difference on my DTI. Unfortunately, they have to base it on the average and not actual.

I don't want to pull my credit multiple times obviously, so this is my question. Are there any banks/underwriters that analyze your income using a different method? And if so are there any banks you would suggest that would make it worth pulling my credit again? 

Having done some business with Wells Fargo in the past, it seems as though they're a rather conservative bank. They require a score of 700 or higher for investment properties. Any suggestions for banks accepting investors in the 675 range? 

@Jerry Padilla

 Jerry, this is all great info! Thank you so much. 

@Kyle H. 

Kyle, thanks for taking the time. I definitely have the reserves for both properties. If I did pay down my cc it would make things a little tight on the reserves end. An area I overlooked. Thank you Sir. All the best! 

Looking for some advice with my next move. I would like to purchase two more rental properties this year. I currently own two, which are both generating a nice profit after expenses. One is in Florida, which is already paid off, no mortgage! The other, in Brooklyn, NY which carries a small mortgage. 

While I've owned two rental properties for some time now, I certainly do not claim to know everything, which is why I am here. So here is what I'd like to do. Take a mortgage/loan out against the rental I have in Florida which again is currently paid off. I believe I can take up to 70% of the value for an investment property, correct? With that 70% cash out I would be able to make a 20% downpayment on two other homes in that same area. 

Certainly open to any opinions and or advice on the plan mentioned above. My next thought is financing, which raises one concern regarding my credit. End of November my score was in the low 700's. However after charging an entire vacation on my Discover card to earn points my credit ratio shot up giving me a score around 677. I have the funds in my bank account to bring my cc balance back down to 25 - 30% credit usage. However, I know a lump sum payment won't bring my score back up immediately. I believe you then have to make a few consistent payments at that lower credit ratio for it to go back up. All that to say, to get the financing I need, mortgage/loan against the FL rental and a pre-approval for the next property, do I need to go in with my score at 700 or higher for an investment property? Or am I able to get the ball rolling with my current score? 

Any advice would be much appreciated. Totally open to hearing any alternative strategies as well. Thanks! 

KH