All Forum Posts by: Nick Bennett

@Cole Burley have you considered a hard money loan? You might be better off with a higher interest rate cap than penalties on your 401k-I Don't know the specifics surrounding the 401k loan I just remember it was something like 60 day pay back or massive penalties if it wasnt put back in full in a short time fram- if you dont have the cash flow to replenish that in 2 months or whatever the time frame is, the risk was too much for my liking.

@Austin Dame The "what if's" here are FAR too many. 

I highly recommend spending some time gathering information and picking your direction then going for it. I hear unrest/indecision in this post.

If you're concerned about not selling- fix the reasons your concerned before you execute an offer on another property or accept that you are not going to get what you want. You may want to execute the sale, live short term in a rental while you search for the multi.

You can always make an offer contingent upon sale of primary residence just as you can make it contingent upon an appraisal or an inspection, but that makes your offer less appealing.

Here is the thing though- nobody knows more about what you are willing to do/capable of doing/or want to do than YOU. Therefore I highly recommend getting knowledge on your side and then making the best decision for you based on what you learn. 

- Jim Rohn

Where do you live? what state?

Have you considered a commercial loan and consolidating the portfolio under one entity to leverage the small portions of equity as one lump sum?

@Kerry Baird I actually found a great company in RI for this that got me exactly what I needed and helping me fund future deals based on landlord experience and less on my own debt to income ratio.

Time to connect with investors!

Alex- only way I see to reduce your debt to income boils down to only 2 things. Increase income or reduce bad debt. For you I see the following, others may see more

1) Move out and have no expenses IE live with family( i did this) 

2) Cut some other debt/fixed costs- for example having 8k in debt and having 18k cash is WORSE when trying to obtain a loan than having 10 k Cash and zero debt- even thought the net cash is the same the cashflow is much different depending on the loan/lease what have you

3) Apply for the loan together so both your incomes are on the loan app

4) Make more $

Hope this helps!

We recently applied for our firs HELOC on our rental property which has experienced significant appreciation.

We both have decent paying W-2 employment jobs plus the rental income (45200 or so annually) the 2 companies we applied at have had a cap of only taking/accounting for 75% of the rental income and applying it to our Debt to income ratio- leaving me short of what I was expecting to be eligible for in the line of credit. The benefit to this lender happens to be the willingness to go up to 75% LTV on the rental.

Has anyone come across a lender with better options with respect to considering rental income for the HELOC income portion?- for us I am not necessarily looking for the better LTV but really the cap on the debt to income due to their guidelines.

Much obliged!

@Ryan Wittig what was the best LTV you got?

Is it legal to permit 1 unit to be pet friendly and the other not to be?

I’m no longer living in the property and want that unit to remain pet free, but the downstairs has been allowed (primarily due to the fact that I’m friends with them.

Obviously the short answer is the whole place should be either or, but I want to ensure the legality.

Thanks kindly in advance.

Periphery is in MA

@Lien Vuong thank you for your reply!

I’m looking primarily for a flip contractor 

I have a similar beginning as you and am ready to pull the equity and start building, I have 3 properties I’m looking to tour and get estimates on before locking in the offer.

Nick