All Forum Posts by: Ricardo Funk Hernandez

Recently I moved from my old property (I purchased a new home) so I decided to rent it out. Now that I'm ready to buy a new rental property I have a debt to income ratio problem since the lender told me I need at least a full year of the property that was rented for them to see that "income" (or at least that the house is paying by itself), right now they looking at it this way: He is paying for both mortgages out of his day job.

Does this make sense? I also read that I should look into portfolio lending.

Thanks!

I'm interested on keep learning and share experiences. I'm eager to meet people in the area and learn from them.

Thanks @Mitch Coluzzi this gives me a much better idea, I'm really thankful that you took the time to explain it.

@Mitch Coluzzi thanks for your time.

Thanks everyone for your time, I really appreciate it.

Mitch, thanks for the inside, your information seems to be pretty accurate and based on facts. I'm moving away from equity partnerships towards Buy, Rehab, Rent, Refinance since I do have some money to start.

Your present day information seems to be the jackpot, I understand about 50% but seems enough for now, I';m not sure about the line of credit, is that with a bank, with credit cards, with private investors?

"you can hypothetically get into these properties, through a standard investment bank, with little to no money down if you have an established game-plan. Basically, you can utilize sweat equity (if you have the skills) to make the down payment up."

I do have the skills (sweat equity), you mean by refinancing it after the rehab and get the down-payment back?

Thanks again

Thanks for your response,

I'm also looking in to the Buy Rehab Rent Refinance Repeat, maybe that makes more sense instead of finding someone else.

I currently own a couple of properties and I have this idea to look for potential investors and create an actual business. I'm located in Central Florida.

First of all, the idea is to buy properties and use them as rental income properties. Now, let's say I want to buy a house for:

Price: $50,000 

Down-payment (20%): $10,000 

Misc, closing expenses: $2,000

Instead of needing $12k to invest I would look for an investor that put $6k and I put another $6k.

If that property rent's for $1,000 and the mortgage is $500, let's say the property management is 10% ($100, I would do the property management), that means that I would make:

$200 in income and $100 in property management.

and the investor would make $200.

Once the property is paid numbers will change etc.

My questions are:

1. Does it make sense or should I change something?

2. Do I need to open a LLC for each house we buy?

3. How can I make the person part owner if the person doesn't qualify for a mortgage but I do?

4. To actually get the capital for my side of the downpayment, I heard about "refinancing a house" that means if I buy a rundown house, fix it, then I can actually get a bigger mortgage which means I could get more money to invest in other properties?

Any feedback is welcome

Thanks!