All Forum Posts by: Raeford Leonard Black II

Hi Justin, 

The underwriter reevaluated my DTI and required me to pay off my vehicle in order to get the loan to close. This was unfortunate as the loan I had on the automobile was a 0% interest loan--thus the reason I had the loan in the first place. Was a bit surprised as this was not an issue on the first property purchase - handled through the same lender.

Hope this answers your question. 

Best.

Thanks Dmitriy.

Investment Info:

Condo buy & hold investment.

Purchase price: $97,000
Cash invested: $24,250

First rental to purchase 100% on my own.

What made you interested in investing in this type of deal?

Buy and hold investment.

How did you find this deal and how did you negotiate it?

Through a referral from Braden Property Management.

How did you finance this deal?

Traditional financing - 25% down.

How did you add value to the deal?

The property was rented when purchased. At the point of turnover, the property will be updated allowing for a significant increase in rental value.

What was the outcome?

Financing ended up being challenging in the 11th hour, but all was resolved. Very pleased with the purchase. Already had $10k in equity at closing.

Lessons learned? Challenges?

Better understanding Debt To Income (DTI).

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, Steven Braden with Braden Property Management. Exceptional service as an Agent as well as Property Manager.