All Forum Posts by: Kyle Berns

Thanks Joe!  That's good advise on potentially looking for a commercial loan. I will do my research and shoot you a message if I have an additional question! 

Thanks so much for the help!

Thanks @Jerry Padilla

I will keep that in mind as I am searching around for deals lenders. Good tip on the larger down payment and 75% use of the rental income. I appreciate your response!

Hi Guys!

Anyone have any advice or experiences they'd like to share in regard to qualifying for a multi-family rental purchase?  This would be my first multi-family purchase so any advice would be of help!

Here's my situation: I started with my first rental purchase in 2013, and I'm now up to 3 units. What I'd like to do now is purchase a larger multi-family (maybe a 4 unit) and live in one of the units. I know some lenders will use the potential future rental income from the additional units to help you qualify. I'm concerned that with a multi-family potentially being a much larger purchase than I've done in the past, my DTI ratio will not qualify. Unless, the lender is "giving me the benefit of the doubt" by adding in potential rental income from the additional units.

So my question is, has anyone had experience with this type of transaction...using rental income to qualify, before you actually start receiving it?  Are there any of the larger lenders that are more flexible? (I'm near Ann Arbor, MI)  Any helpful advice before I start calling lenders would be GREATLY appreciated.  Thank you very much for your time!

Kyle Berns

Jorge,

Thanks so much for the information and example.  This does help as I continue my search for another investment property.  I will keep this in mind when submitting offers and planning my future financing options.  Really appreciate you taking the time to post that info!

Thanks for the input guys, really appreciate it. Matt - thanks for the tip as that is something I'll definitely need to consider beforehand. And yes, any further up Woodward gets to be more expensive than I am looking for right now. Wilson - also appreciate the words of wisdom. That's what I've been hearing from everyone - the money is made on the "buy" not the "sell" One additional route I have been exploring is utilizing a website such as Auction.com to hopefully buy at a discount. If either of you have had experience with buying foreclosures/bank owned, any advice would be appreciated. Thanks!

Hi BiggerPockets!

My name is Kyle Berns. I am a 26 year old finance major from Eastern Michigan. I currently work over in Troy, MI in mortgage underwriting. I bought my first of two rental properties in the Saline/Ann Arbor area back in 2014 and they are working out great thus far. I found BiggerPockets a few months ago by accident just browsing online, and I absolutely love it. I have been listening to about 2-3 of the podcasts per week and reading as many articles and forums as possible. I think it is awesome there is this community online for people interested in real estate investing.

A little about me…I plan to purchase two more rental properties by the end of this year, one by September 30th and another by December 31st. I have an open HELOC on one of my properties and also pre-approval for traditional financing. My plan is to use the delayed financing technique to build a larger portfolio of rental properties, now that I have a decent amount of equity built up. My 2 year goal is to build my income from real estate to a point where I am replacing about 50-60% of my currently monthly income. After this, I plan to move to a part-time W2 job, giving me more time to focus on real estate and other business ventures. I plan to be fully self-employed and in business for myself by age 30.

I hope to utilize BiggerPockets to connect with, share information, and learn from other investors in my area of Metro-Detroit. I am now actively looking to purchase my next investment property in the Woodward corridor area (Madison Heights, Ferndale, Hazel Park, Oak Park, etc.) I am wondering if anyone on BiggerPockets has invested in these neighborhoods? If so, how has your experience been? A few real estate agents I have spoken with are saying these are great rental markets, in particular, Madison Heights considering its location relative to Royal Oak, is this correct? Any issues finding profitable deals in these neighborhoods? Have you had trouble finding quality tenants? Any issues with crime? I would welcome any advice or suggestions! If you have questions or would like to connect please message me and I would love to speak with other investors in the area. 😊