All Forum Posts by: Account Closed

In response to @Elizabeth C's post-

3 years?

1 year seasoning period for FHA, and 2/4 years with any Fannie product (with 20/10 percent down respectively). Portfolio lenders will vary on seasoning requirements.

Short sale loss income?
Not sure what you mean here-short sales are treated as cancellation of debt and taxed as ordinary income-- if you are referring to the mortgage forgiveness debt relief act as the "tax waiver"
then it was extended through 2014.

The introduction of qualified mortgages (QM) as a provision of Dodd-frank recently enacted (Jan '14) could serve to promote portfolio lending as fewer and fewer loan products are eligible for delivery into the secondary market.

Nathan- I think there is a remote possibility you will find a builder in Michigan to construct for <100/ sq foot in Oakland County. Plus, can't your area in Novi support a greater level of investment?

150-170 for a custom home in affluent suburbs of Detroit. Few thousand square feet- top finishes and detail.

if you enjoy real estate who is to say college isn't your path to happiness working for a large firm upon graduating with a college degree? It's impressive to hear you would like to start right away creating your own path to financial success-- maybe college is just a pit stop on your way there? I just recently listened to a guest lecturer at business school (top mba) who was a managing director at black rock.If you are interested in real estate ...listening to this exec talk about black rocks strategy to acquire 150k SFR around the nation and spend billions would be sure to get your blood pumping. Maybe your highest and best use is working on things bigger than rentals, flips, and buy and holds. what about development, investment companies with RE focus, or construction management? I would always advocate for a formal education. I'll put my business acumen obtained from a big ten finance degree and top mba against 20 years of experience any day. Guess what- financial markets, real- estate, macro-economics, credit markets, all evolve over time and are fluid. Your 20 years experience is discounted b/c of an ever changing environment. It's more about the tools you have in your bag and how you adapt-- a formal education in business and finance gives you the tools. $.02

As a follow-up, I now see the FAR (floor area ratio) is one of the principal regulations in Austin. But I am still curious as this seems like footprint not total gross living area.

Interesting John- I just purchased a lot about the same size (47X130); the coverage ratios in my suburb are expressed in terms of the building envelope and footprint not total area.

Are you sure the 40% is a floor to area ratio and not footprint? A quick search of Austin zoning reveals SF-2 is 40% building coverage not total square feet of building over total lot size. O well just curious...it surely wouldnt prevent you from building a 1,500 sq foot home as you intend.

As an example:
6500X 40pct= 2,600 (footprint incld garage)
with a standard two car garage (20X20) that leaves you with a 2,200 sq foot footprint (1st level). 2nd level 2,200 for a total square feet of living space of 4,200.

Coty -if you have passive activity losses on Schedule E as a non real estate professional then refer to my original post. If you are a pro refer to Ben's post-- your losses are fully deductible. -Mark

schedule E is income/expenses by property (A,B,C,etc). although it doesn't matter that you cant insert trust deed income into a schedule E b/c it's taxed as ordinary income. Your losses on the rental from schedule E will go to offset ordinary income (subject to certain ceilings based on AGI). Since trust income is treated as ordinary in an indirect way your rental losses are offsetting.

Thanks Josh! Good to see so many SE Michigan members on the forum.