All Forum Posts by: Sam Nelson

Thanks @Jordan Moorhead and @Ryan Kelly for taking the time to reply and for the info. I am open to purchasing a home that needs some basic renovation, but don't want something that is uninhabitable. Looks like I'll focus on boosting my savings and income and I'll consider those other areas farther out. 

@Ryan Kelly those are all great points. Thanks for your thoughts. I will be increasing my income and cash savings over the next few months and remain patient. 

@Jordan Moorhead I'm currently in north Austin and have been looking at Pflugerville/RR/Cedar Park.

@Sarah Davis thanks for the heads up on TSAHC. Sounds like a great option. I hope things work out for you!

Jason,

Thanks for the response. I mentioned SE part-time in order to clarify that I have room to scale my business and income. I don't want a lender to think that's my upper limit. I don't do contract work nor am I 1099 or W2. I do my own billing and invoicing. Also, I had y-o-y growth in revenues leading up to 2020.

Good point about the student loans. I'll continue to make payments.

I'll look into the TX refi process. Thanks for the heads up on that.

Hi BP friends,

I'm a single 32 y/o looking to purchase a SFH as a primary residence + house hack in Austin, TX. I've lived here for 9 yrs and plan to stay long term - my work is split 50/50 between being virtual and location specific.

I am SE and earn 52k/yr gross. I work part time hours (~20hrs/wk @ $50/hr) and spend the other time developing skills to expand my business into new areas in the coming years. I currently turn down new clients/work in lieu of maintaining flexibility and free time in my schedule to develop said skills.

Here’s a quick rundown:

• Excellent credit 805
• DTI 7% (student loan balance of 5k - no other debt)
• Cash 42k
• Trade-specific assets 30k
• Investments 25k

My goal is to purchase a 3/2 SFH home for 250-300k using a 3% down conventional loan and to rent out the master BR/BA (I need 2nd BR for home office). I currently rent a SFH with a roommate for 1700/mo. Rents in my area are 1800-1900/mo. I am not looking to cash flow. I want to lock in my housing expense, avoid the uncertainty/instability of renting (landlord is selling the house I live in) and put down roots in the ever-increasing expensive city that I love and want to live in for years to come.

I realize that my situation is much less appealing to a lender than that of a high income-earning individual with less variables. I took a hit in revenue (along with the rest of the world…) in 2020, but things are back on track with Q1 of 2019. 

• Am I foolish to try this? 
• Should I pay off debt (5k in student loans) in order to maximize lending potential?
• Have you presented a signed lease agreement with a renter to a lender? Lawyer friend told me that some may take into account 75% of rents collected. 

I just need some advice and thoughts on the situation. Thanks for taking the time to read.