All Forum Posts by: Richard Ladenberg

Bought first house in California FHA 3.5% February 2016. Moved for job and bought second house in Georgia conventional 5% May 2017.

income

My salary income is $80,000 

California rent income $2,850

Can I count the boarder income of my primary SFH residence right now ($3,200)? i will be reporting it on my taxes for 2017.

debt

California piti $1,950

Georgia piti $2,000 (yes, gross profit per month is $1,200 with only 5% down, seller covered all closing & living rent free)

car $530

student loans $350

As an investor I want the minimum amount out of my pocket. So "more down" isn't the answer for me. Wanting to buy a property in 200-300k range in Georgia with 20% down (or is it more likely it will have to be 25%? not sure which it is for investment property).

Not really sure what my options are. House has to be in that range, don't want less. My DTI is too high, unless I can count boarder income. Any ideas?

@Roy N.

Thank you for the reply Roy. Yes that is basically my plan. Furnished rooms to students and travelling workers. And it's what I've been doing in my current owner-occupied, so I have the proven method and tax returns for it.

Now are they only counting your market rent because the Den Mother lives in there? Or did you dial for dollars until someone would count your property as "2 units"? And even then they only counted the market rate, since what I'm assuming is you making a lot more than maket rate. If I don't have a basement but have a first floor and 2nd floor would that count as "2 units"?

And in your last paragraph, are you saying I should tell them I'm renting room-to-room but would like the market rate rent for the property to be assigned even though I make way more?

Example: If I buy a 4bedroom property that has a market rent rate of $750 and have a rental lease agreement to my wife for $1,000 who then sublets each individual room for $250 each totaling $1,000, would the initial $1,000 lease count 75% of that as income (so $750) towards my income for DTI purposes on future properties? Or would they only count 75% of $750 because that is the market rent rate and mine is too high.

I make more money renting each room individually but I know lenders won't count that as income, so wondering if I can have the "master lease" that allows subletting would be a viable method, but use my wife or friend instead of property management, because I doubt any property management would work in that capacity of renting individual rooms, at least not for cheap.

Also for clarification, the wife or friend would literally manage it. They would receive the rent monies from tenants then passing it to me. The wife/friend fulfilling their subleases to receive individual rent money and then fulfilling master lease by giving me the money.