All Forum Posts by: Patrick Dean

That is helpful. We are keeping multi family properties in mind and have a realtor in KC sending us MLS searches for single and multi family.

I think I figured it out. Pay off 1, 2, and 11. Leaves me with $21k in savings and would be at a 46% DTI ratio. Thoughts??

First, I don't expect others to tell me all of my solutions. i just want to know others' opinions on what may be the best path to my next place.

To summarize, we sold my house in November and walked away with $36k. With that, I have a lot to either pay off, consolidate, or a combination of the two.

I'm going to break down debt amounts in total and by monthly payment with scenarios of what my DTI may be when paying off certain amounts of debt/accounts.

Of course, we wanted to avoid private mortgage insurance, but the primary goal is to get debt paid off so I'm at a good DTI and so I can get my credit score higher for a lower interest rate.

We are planning on moving to KC from the Twin Cities area in the early spring, so we're allocating about $3k to moving.

So, we have about $40k in savings, including the money we made from the house sale.

Income=$24/hr, $3840/mo

Here's how the debt breaks down.

1) Credit card 1: 4021 bal, 183/mo

2) Credit card 2: 8032 bal, 218/mo

3) Credit card 3: 11084.30 bal, 133.49/mo

4) Credit card 4: chase 401.60 bal, 5.04/mo

6) Line of credit: 762.36 bal, 0/mo

7) Insurance (renter's & auto) 232/mo

8) Cell phone 33.14/mo

9) Student loan 1: 96.55/mo

10) Student loan 2: 126/mo

11) Personal loan: 250/mo, about $9k balance

13) Line of credit 2: 1900bal, 25.20/mo

14) Credit card 5: 463.09 bal, 16/mo =1429.42

15) Rent 1100/mo

=$2418.42 debt payments per month

So, $2418.42/$3840=.62979 DTI, or 63%. I hate that number.

Our thoughts are to pay 2-3 accounts off. We want enough to be able to move and put a down payment on a house. I'm going to most likely apply for the mortgage on my own since my wife may not be able to get a job right away when moving to KC. I should be able to telecommute with my job by the spring, so I won't need to worry about getting a new job.

Thoughts on how the debt should be paid off to get to a DTI that's acceptable for lenders for a mortgage? We'd look at 3.5% down for FHA or 3-5% for conventional. Ideal would be to have about $15-$20k left over for a down payment, IF possible after paying off debt/setting aside $3k for moving.

I greatly appreciate opinions on this. I want to be able to tell our potential mortgagor an idea of a plan to pay off debt so that he can sooner work on getting me pre-approved.  -Pat

So I'm not creating a new thread on the same question. Can someone just give a straight answer and not throw around the word fraud freely?

I have lived in my FHA financed home for over a year. The affidavit of occupancy that I signed at closing had me agree to occupy the house for 1 year, which I did. I plan on moving out of state. I have roommates who rent the other two rooms. I am obviously not going to occupy the property anymore by moving out of state. I plan on renting out the other room. It will then be a fully rented house.

WOULD I BE COMMITTING FRAUD??

Thanks Charlie. Now, my fiance might be hitting a bump in the road with her pre approval. The lender said pre approved for 250k, but now says an underwriter has to ok her being a contracted employee. What are your thoughts on if lenders are going weigh that greatly in terms of willingness to lend to a contracted employee? She has been employed for the past 10 years. If a contract ends, she always finds a new job within a few weeks.

Can you use cash in addition to pre approval amount to increase the price point of a housing search?

Correction, REI.

Thanks for the responses, everyone. Per my user name, I have experience as a private investigator and have conducted surveillance in some really bad neighborhoods. With me not being from the Saint Louis area, I wanted to get some investors' opinions on that area.

Saint Louis is driveable for me but of course I would prefer to invest in my area, if possible. With what has been said in this thread, I might focus more on KC if I invest out of state since it's an easier drive and I know the area better. Does anyone think that there would be a market for a person with surveillance experience to sit in a neighborhood for a day for an REO and report their observations to them?

My goal is to buy SFRs under $30k, fix them up so that I can attract good, long-term renters. Buy and hold to eventually buy MFRs. Thoughts on this property?

http://www.realtor.com/realestateandhomes-detail/792-Briarbrae-Dr_Saint-Louis_MO_63138_M87770-15651?ex=MO601110583