All Forum Posts by: Dominic R.

Thanks @Jeff S.. My personal income gets me far enough at this point to only pick up one more until I can show the 2 years rental income to offset my DTI. Thats the problem as I have some cash to plunk down as down payments.

Ok - this will be a bit of a winded post but want to air my current situation and ask for your help. I am really looking to have explained a little deeper the ways individuals build a buy-and-hold portfolio and get around the 2 year land lording requirements that banks offer. I read all the time how people accumulate property w/$100k cash, put $20k down on 5 properties and viola you have 5 $100k homes w/$80k mortgages on them.

I have heard call different lenders and ask but the handful I have contacted don't have any answers for me other than I can't do anything additional without 2 years land lording on my taxes for DTI purposes.

My situation:

I am employed full time with a rough salary just shy of $100k/yr

I have a primary residence with a mortgage on it and little equity

I am also putting the final touches on an investment property that was paid cash for and is worth about $160k.

I have additional cash to cover down payments on a few more properties.I was pre-approved for $150k financing on my next place with 20% down.

My fear is in a few months once I have renters in there I cannot get additional financing for more properties until I show 2 years on taxes to offset the dti.

I am just looking at how others have approached financing within the 2 year taxable rental income.

I get that when I have a few properties I can find a portfolio lender to help me out but I want to ensure that I can keep the ball rolling.

Thanks in advance and I searched the forums found a lot of info but none that specifically helped my situation.

Dom

Thanks guys!

So here is my situation...

Put an offer on a property 2 days ago. The offer was for $100,500 on a prop listed for $115. The bank had dropped the price from its original list price of $148. They came back with a counter of $105 and a higher earnest money. I agreed to the higher earnest (as this is an all cash purchase) and raised my new offer to $101.

As we were submitting the new offer the listing agent let us know that there was another offer he just received and he would submit ours after the new offer. He also mentioned that with the new offer the bank my call for "everyone's best offer."

To give details, the property is in need of some work. Needs a new roof (including sheeting) and has some mold issues that the bank fixed prior to listing. I am not 100% confident that we will not find more. It has a garage that was not legally built into 2 additional bedrooms as well as a large rotten deck out back. So it will require a fair amount of demo.

A few questions based off of this:

1) In a situation like the above and a bank calls for "all best offers" what is your typical offer logic based on what you know? Also, if the other buyers offer more but are not a cash buyer one would think the bank would choose a quicker close cash buyer, correct?

2) If there has been prior mold issues disclosed to us during purchase and we will obviously disclose when we sell the property (if we get it) does this make any of you run from a deal? Or is it not a large concern to buyers as long as it was mitigated correctly and can show it was fixed? Just worried we could rehab this place only to find we can not off load it at the ARV we are thinking based on the prior mold issues.

Thanks in advance guys!

Hello @Eric Belgau!

I am also a new user here from the Rainier/Yelm area! Wlecome! We should get together for coffee sometime and exchange thoughts!

Dom

Hey all -

Just getting started putting into motion what my father preached to me growing up. My parents were both active in all sorts of property transactions from Buy and Hold, Rehab, Flip, ect.

I was raised on diet of Rich Dad, Poor Dad, Automatic Millionaire, and Millionaire Next Door and at 29 it is finally clicking. I am a University of Washington graduate and my wife and I are expecting our first child this August.

With the baby on the way it has re-aligned my priorities and really pushed into high gear the need to be in control of my own future. (Time, Money, Freedom)

Already looked at 15 Homes as potential flip opportunities but none made sense financially. Hoping I close in on my 100 looks so I can make my 10 offers and close on 1 home soon.

Thanks to all who contribute for the wealth of knowledge you have already shared in your blogs, posts, and podcasts.

Dom