All Forum Posts by: Lawrence Paul

Let me give a better example.

1. I buy property A, which shows up as income on my schedule E and is calculated into my DTI Ratio after 1 year.

2. Repeat step 1.

3. Repeat step 1.

4 Repeat step 1 and now I have 4 properties.

5. I want to upgrade all 4 properties (SFR) in a short time span (6-18 months).

Since it took one whole year for each property to be reported on my DTI Ratio/Schedule E/Season/Net Gain, does that apply to my new property that I just upgrade into with the 1031? Must I wait a whole year to upgrade property 2 with a 1031 exchange to meet my DTI Ratio standards from the first upgraded property?

6. Sell property 1 and 1031 exchange into 4-plex 1.

7. One month later sell property 2 and 1031 exchange into 4-plex 2.

8. Repeat step 7

9. Repeat step 7.

Hope giving a time line example helps clear up my question?

Hello again,

I plan on using the 1031 exchange in the coming years to upgrade from SFR to either 2,3,4-plex or a small commercial unit.

If I say 'season' my SFR property for 1 year so the income shows up as net gain or net loss, but then want to 1031 exchange my SFR into a 4-plex (more expensive)...

Is the 4-plex already considered 'seasoned' or will I have to wait an entire year to 'upgrade' my properties from SFR into a 4-plex type option?

Thank you!

Guess I just need to find a better bank or lender because I have more money than banks will let me spend on conventional loans right now because all the banks that I have run into make me wait a year before calculation net gain (or loss) on my rental property.

Based on the numbers I am running, I will only be able to purchase one property per year...perhaps two if I can pull some DTI magic. Feels like I am not able to invest my money to its full potential. Once the ball gets rolling two a year seems more simple (perhaps year 3-4), but this starting out feeling is being to get to me.

I am going to cash out refinance on my first property in three weeks (purchased 30,000 undervalue and put 6,000 dollars into the property). Purchased for 110,000 worth 140,000.

Thank you.

Where would I find out when/where my next local REIA meet up is?

I keep seeing these life changing one year turn arounds in peoples lives.

My main question is how do people buy 10 properties in one year considering the DTI Ratio?

I am personally making 65k-70k/yr at my W2 job and can only afford 1-2 rentals per year due to DTI Ratio, not liquid funds.

My rentals are currently not inside of any LLC, but I have a large umbrella policy.

What am I missing?

Been looking for an online or REI Friendly bank in the area that will allow me to scale.

My current bank will not let me Cash out refi on my rental (will be 6 months seasoned in 1 month), will not give me 30 years on an investment property, will not calculate any type of income from the rental property until 1 year is over, ect.

I just missed out on an amazing foreclosure deal right next to my primary (where all my rentals are located) because of my banks terms and conditions.

Been looking and looking, but it seems like no banks are REI Friendly that I have talked to (or there huge lack of knowledge does not allow them to answer questions and I am on the telephone for an hour talking to an uninformed loan officer).

Help!? What bank do you use!?

Been looking for an online or REI Friendly bank in the area that will allow me to scale.

My current bank will not let me Cash out refi on my rental (will be 6 months seasoned in 1 month), will not give me 30 years on an investment property, will not calculate any type of income from the rental property until 1 year is over, ect.

I just missed out on an amazing foreclosure deal right next to my primary (where all my rentals are located) because of my banks terms and conditions.

Been looking and looking, but it seems like no banks are REI Friendly that I have talked to (or there huge lack of knowledge does not allow them to answer questions and I am on the telephone for an hour talking to an uninformed loan officer).

Help!? What bank do you use!?

Hello again,

So, my current bank requires me to wait a whole year before they calculate net income or net loss on my first rental property.

Needless to say, I am not thrilled because I bought undervalue (20%) and forced a slight appreciation (5%) on the property.

The bank also forced me to put a large down deposit (45%) on the property due to my debt to income ratio along with a 25 year mortgage at 4.5%.

Thinking about doing a cash out refinance on the property with a 75% LTV in six months, but...

Here is my question: Are there federal guidelines that regulate how slow or fast a bank is required to calculate net income or net less for my debt to income ratio?

I was thinking of using an online bank/mortgage lender to cash out and repeat the process so I can have multiple flows of income.

Ideas/Thoughts?

Thanks!

Sounds like I need to sit down with myself and make a complete list/rules of all my pre screening requirements and preform a phone interview prior to the walk throughs.

Do you preform a phone pre-screening prior to a walk through? Am I understanding this correctly?

Guess I might just be a little bit excited and anxious all at the same time.

Does anyone have list of red flags, green flags and other requirements for potential renters/screening?