All Forum Posts by: Paul Brady

It’s just a heloc. This credit union offers up to 100% ltv on a primary residence (which I have plenty of equity in). I may have to bring my business elsewhere though because they don’t seem to understand basic math. 

I have two rental properties

One with a $5400 mortgage payment with $6600 in rents coming in after expenses ($1,200 in profit)

Another with a $2000 mortgage payment with $3000 in rents coming in after expenses ($1,000 profit)

The underwriters are trying to tell me that the $5400 mortgage and $2,000 mortgage counts against my personal expenses but all I can use to combat these expenses is the profit I make from the rents after paying off the mortgages ($1,200 and $1,000)
So my rental income looks like a complete loss on paper even though I’m fully profitable .All they keep telling me is “well we have to go off of the net profit” and I repeatedly told them yes that is the net profit after said mortgages are paid off from the rents.

Has anyone ever had to deal with this sort of calculating or do you think the underwriters I was assigned to might not understand how to calculate rental income properly?

Thanks

I have two rental properties 

One with a $5400 mortgage payment with $6600 in rents coming after expenses ($1,200 in profit)

Another with a $2000 mortgage payment with $3000 in rents coming in after expenses ($1,000 profit)

 

The underwriters are trying to tell me that the $5400 mortgage and $2,000 mortgage counts against my personal expenses but all I can use to combat these expenses is the profit I make from the rents after paying off the mortgages ($1,200 and $1,000)
So it looks like a complete loss on paper.
All they keep telling me is  “well we have to go off of the net profit” and I repeatedly told them yes that is the net profit after said mortgages are paid off from the rents. 

Has anyone ever had to deal with this sort of calculating or do you think the underwriters I was assigned to might not understand how to calculate rental income properly?

Thanks 

I've tried to do as much research as possible on seller financing. Most people on here have said look for FSBO properties which I have started doing without any luck yet. My question is is there any kind of database that is available to find local homes without mortgages? Finding houses that are paid off would help me get in touch with the right sellers. Thanks

I have a 2 family in central Massachusetts. My first floor tenants (who after a year have been great tenants so far) are strongly urging me to let their family move into the newly vacant 2nd floor unit. I have many people interested in the unit already. My question is has anybody dealt with having multiple family members/friends in the different units of the same property? If so how has it worked out and is it something that should be avoided for any reason ? 

 Great answer Alex I wasn’t aware of that route. Yes I have about 55% ltv so I think it could work thank you

I know lenders will go off recent tax returns for my current properties. But do they go off of overall net profit after subtracting repairs/upgrades that are claimed to each property. Or do they go off of strictly the rental income that was claimed and not factor in the deductions? Thanks  

I have 2 investment properties that both make money and have equity but lenders still see my dti as too high to get another mortgage or a heloc. I'd like to buy another investment property but need more capital for the 20-25% down payment. My question is if I were to start an LLC could I take out a secured business line of credit on my 2 family that is in my name? Then use that money to purchase an investment property through the LLC?

The basement of my 3 family in east  seems to meet all the requirements from what I found for a str. 
Adequate height, separate entrance has a kitchen and bathroom.

My only question is the furnace is deep into the basement as far as can be away from the entry way with no way to make lone access to it. The only solution I can think of is to make note that in case of an emergency I would need access to the furnace through the unit . Has anyone had a similar situation to this ? Thanks