All Forum Posts by: Lisa Martin

It's a cash out refi of BRRRs so I think the ADU income won't work. Thanks so much for posting the info. I think we will be okay on these but no new car loan for me anytime soon. Gotta love driving an old minivan while wealth increases. It's super sexy! LOL!

They are BRRRs so cash out refi investments and we don’t have low income.   The lender is trying to find a work around using my other income sources but my goodness I’m surprised!  We’ve counted that rental income in our calculations before I left my W2.   It is not a small amount.  

We have been careful to document and report all rental income to the IRS from our accessory unit attached to personal residence for the past 4 years.

In our current application for investment loans our lender is telling us that Fannie/Freddie will not let them count that rental income for DTI calculations. It is a good chunk of income and makes a difference to us as we pay our expenses each month. Qualifying was not a problem before as we had enough regular employment income, but I've now left my W2 job to become a real estate investor. The accessory unit income counting is needed in our DTI calc.

Is this normal?  Accessory unit has a separate address yet is not a "duplex".  

Any insight?   I'm stumped why it doesn't count.

Thanks Jonathan that's what I initially was thinking then I started overthinking!  

I like to think of the property acquisitions x 10 or x 100  as I scale my portfolio. I sure do miss interest rates from a few years ago!   At least I have properties already locked in at great rates that who knows when and if we will see them again :-) 

I'm having a difficult time deciding if paying points is worth it. I currently have 3 deals in progress all will be cash flowing long term holds. 

Average mortgage around $150,000.

Interest rate      Points        P& I payment 

7.125%               2.25              $1011

7.375%               1.25              $1036

7.5%                    .75               $1049

I calculated paying 2.25 and 1.25  points would take just under 5 years to break even.  

I keep thinking I can refi if rates go down so don't pay points now but on the other hand maybe I lock in 7.125% and let it ride because they cash flow, mortgage balance is relatively small, and the numbers work today so let it sit there and get better over time as rents rise. 

What are other investors doing in this interest rate climate for long term holds? 

That's great information thank so much Bill! 

Asking for a friend!   ;-) 

Seller inherited paid off 8 unit apartment building in Southern CA when his mother passed away last year.  He wants to sell and likely won't 1031 exchange as he just wants to the cash.  I realize some tax burden is wiped upon passing of his mother but I'm not sure how much. 

How can he estimate any tax he will owe upon the sale?

Thanks for advice/insights!