All Forum Posts by: Phillip Rosin

This is a bit different but hoping you all will be generous with some insight. We were set to continue renting where we live and buying rentals but decided to consider getting a personal home. We found one with an assumable FHA loan. Rate is 2.75% with .085% PMI, which we can't remove unfortunately. Purchase price is $430k and current loan is $300k, so we'll have to pay the 130k difference. 26 payments have been made so far, so we skipped the 2 most expensive years of the loan. We are paying top dollar on the property, possibly a bit over. But with the interest rate, we'll obviously be paying much less than even a much cheaper home at today's rates. If we move in a few years, the house would cash flow positive around $100 per month with PM, $380 self managed. It's at the South end of Vero Beach, FL in a nice little waterfront neighborhood, but this one isn't waterfront. Lots of improvement and new development in the area, including revamping downtown Ft Pierce, which is about 15 minutes away and a new Buc-cee's gas station coming nearby. Several planned communities as well. We're currently renting about 15 minutes away in a lesser house/area for $2300. Total mortgage for this house will be around $2150 (PITI+PMI) with updated tax/ins. Has 2018 metal roof, 2018 HVAC, 2022 complete repipe, 2022 water heater. I've run numbers every which way and it doesn't seem like a terrible move, but I'm worried maybe I'm missing something. Does this sound like a decent deal for a primary/future rental? Am I possibly making a mistake?It would also benefit us personally as it's a nicer neighborhood and house, with a big yard, and we want to start a family. The house is directly across the street from waterfront homes worth twice as much and down the street from houses in the millions. Thank you so much for your opinions!

Oh! I must have missed that option! Will do that thanks!

This is a bit different but hoping you all will be generous with some insight. We were set to continue renting where we live and buying rentals but decided to consider getting a personal home. We found one with an assumable FHA loan. Rate is 2.75% with .085% PMI, which we can't remove unfortunately. Purchase price is $430k and current loan is $300k, so we'll have to pay the 130k difference. 26 payments have been made so far, so we skipped the 2 most expensive years of the loan. We are paying top dollar on the property, possibly a bit over. But with the interest rate, we'll obviously be paying much less than even a much cheaper home at today's rates. If we move in a few years, the house would cash flow positive around $100 per month with PM, $380 self managed. It's at the South end of Vero Beach, FL in a nice little waterfront neighborhood, but this one isn't waterfront. Lots of improvement and new development in the area, including revamping downtown Ft Pierce, which is about 15 minutes away and a new Buc-cee's gas station coming nearby. Several planned communities as well. We're currently renting about 15 minutes away in a lesser house/area for $2300. Total mortgage for this house is around $2150 (PITI+PMI). I've run numbers every which way and it doesn't seem like a terrible move, but I'm worried maybe I'm missing something. Does this sound like a decent deal for a primary/future rental? Am I possibly making a mistake?It would also benefit us personally as it's a nicer neighborhood and house, with a big yard, and we want to start a family. The house is directly across the street from waterfront homes worth twice as much and down the street from houses in the millions. Thank you so much for your opinions!

 I'm not sure how it passed, but I know it passed when previously under contract and my inspector didn't mention any issues yesterday, but I guess I'll find out soon. 

Regarding hard money, I'm not sure if I can qualify if I don't have a LLC? I currently operate as a sole proprietor.

They filed a claim but it doesn't appear like they'll be covered enough as I don't believe they had flood insurance. I made sure they will not be collecting any insurance payouts meant for the building. The house isn't in a flood zone. A lift station failed during the last hurricane. 

 Thanks Doug. I hadn't considered a bridge loan. Are those available even if I am not selling any property? I operate as a sole proprietor when it comes to real estate and I have a W-2 job as well. I'm still small, with two duplexes, but they cash flow very well and I have a good paying full time job. 

 Florida. I will be using it as a rental. Thanks!

Purchase price 245K ARV 425K. Market rent 2500/month. Home passes 4pt but has a few feet of drywall removed in several rooms and the lower kitchen cabinets removed. There is a working sink and all appliances are working. Current owners are still living there and need to stay for 30 days after closing. I will then go immediately into renovations, for which I have proof of funds.

Will some lenders allow a DSCR loan on this property as is? Thank you.

I have a house under contract. 245K purchase with ARV 425K. Rehab will be around 50K. It flooded and is currently in the post flood state. A portion of drywall, flooring and cabinets have been removed but there is no rot or any structural issues. The current owners are living there and they do have a functional kitchen and bathrooms. It does pass a 4 point.

Also, I work W2 and do well, but I haven't filed my 2022 taxes yet (extension from accountant moving to a new company). I have two duplexes, which I have owned for about 3 years, but two of the units had been under renovation or occupied by me for a portion of the time, so historic rental income isn't reflective of current conditions with all 4 units now rented. I am currently renting where I live.

With the current rental income I am well within DTI limits with the new property. However, I'm concerned about getting lending having not completed my 2022 taxes yet and also not being fully rented for 2021 and 2022. I'm also not sure if, as a backup, DSCR will be an option with it being in the current condition.

My questions are:

Should I be able to get a DSCR loan if the property is livable but in need of renovation, for which I do have proof of funds? If so, feel free to recommend some lenders (if that is allowed).

Might I still be able to get traditional lending even if I haven't filed my 2022 taxes yet? If so, feel free to recommend some lenders (if that is allowed). 

Any/all other ideas/advice greatly appreciated! Thank you!

I'd greatly appreciate some recommendations for a reliable PM in the Tampa Bay area, specifically Clearwater. Thank you!

Hello and thank you in advance for your time!

I currently have two duplexes (living in one unit currently) and work a full time w2 job in tech. Credit score hovers around 800. Only non-real estate debt is student loan and car. I'm planning to purchase more property soon, but also have been wanting for quite some time to finally upgrade to a larger boat. My biggest concern, however, is how that payment impacts my DTI and ability to get lending going forward.

Currently, I'm sitting around $155K gross combined income with around $49K in expenses (mortgages, insurance, taxes, car pmt, student loan pmt). That gives me a current DTI of around 32%.

The new boat payment would fall somewhere in the $400-$500/month range, bumping me to around 35%. 

If I'm doing my math correctly, when purchasing another property and including 75% of the projected income in the calculation, a $400K property with 25% down would put me around 43%, which is generally the max allowable DTI I believe?

My question is, am I overthinking this and would I likely still be able to find funding at reasonable rates for a more expensive property, even though it goes over that 43% mark? I ideally hope to be able to target property up to around $1M in value, with 25% down, unless I purchase as a primary with FHA. Granted, as I approach the $1M budget, I'll be most likely looking at a commercial situation (5+ doors), at which point my personal income may not matter. However, I may come across a 4plex, for example, which exceeds $400k. Should I be worried and postpone the purchase several months to a year, or will it likely have less impact than I'm anticipating?

I have briefly read about DSCR loans, which I imagine could be a fall back plan, worst case? I've also read about portfolio loans, which may also be an option? I understand both of these options may result in higher rates than conventional. Seller finance is also a potential possibility, I'm just trying to not limit myself to these alternatives if possible.

Thank you for any and all input, advise, perspective, etc! 

Side Note: I'm not here looking to find justification to buy a boat. I'm very responsible, rarely splurge on things and I know I can afford it. I will be buying something in the next year either way, but I'd rather do it now as prices are already slated to go up and interest rates are low. Again, I'm just worried about it having a big impact on my investing and wondering if I'm worrying about something that isn't going to be that big of a deal for me in that regard.