All Forum Posts by: Rick Ortiz

@Sean McDonagh

In my experience the banks have taken into consideration my rental income which is reported on my tax returns. So as long as the properties are making money or break even your DTI never gets worse. I have a pretty high paying W2 job which allows me to get approved. Im past my fannie mae limit on properties so now it doesnt matter cause i have to rely on commercial lending.

@David A.

Ya, strange how its supposed to be unseen yet all these folks have inside scoop.

@Myriem Mhirit

I mean i guess everyone has a different risk profile and as long as you can get some diligence done and make a somewhat informed decision it makes sense.

@Lynnette E.

Omg. Tenants selling light fixtures. Kinda funny and sad at the same time. But looks like you did well. So thats good.

Taking a show of hands on how many folks bought an investment property site unseen?  I do buy and hold multifamilies, did some flips, did somw BRRRs all the run of the mill real estate strategies. But I have never take such risk, although I recently saw a multifamily investment that my require it.  Just curious for those of you who have what your success story or horror story sounds like?

I came across article about "Land Trust", maybe tbey go by different names in different states. But the interesting partto mg understanding is someone can transfer their property to the trust. The same person (me) can be the Trustee and Beneficiary and this will NOT trigger the "Due on Sale" clause in the mortgage agreement.

First off is this accurate? Second and VERY IMPORTANT question is whether this transaction triggers state tranfer tax. Im sure its state is different buf any info would be helpful.

Lastly from research it seems that after the deed is recorded , i can privately name an LLC as a beneficiary which then provides liability protection.

Allot of stuff here so any insight or experience is helpful.

@Craig Sloan

What is the difference between the prelim background check and full background check? Do you ask tenant to pay to run the checks

Just curious. All else makes sense. Than you

@David Bowles

Can you be sure she is "always caught up"? Will the seller share there financial records. Is it too late and you already made the purchase than its a moot point. If she is just always late but always pays thats ok. But to be always late is a bit scary. You will be stressing out every single month till the payment is made and thats not good

@Jason Nguyen

can you make money with this...it seems based on your experience in your area it might work. HOWEVER there are pros and cons to everything. As you mentioned you own property so you know the effort it takes. Having many people under one roof has its risks. Also what type/ quality tenant wants to share a house with 3 people unless they are students. Your on the hook for repairs, rents, and are the middleman for tenant disputes.

Can your time be better spent growing your own portfolio? Or for xtra cash you can just as easily try start a property management business and charge 5-8% of income doing less work. Your just not on the lease and thus not on the hook for damages, missed rents etc... kudos for thinking outside the box but seems like there are better ways to financial freedom in RE

@John Chang

Agreed. With the one caveat that you may not have to even wait for the foreclosure. Just the "fear" of the pending foreclosure and crappy financial situation for sellers ( lost job , bad tenants, stress) may affect prices in the next several months. But of course in 1 year the deals will be even better.