All Forum Posts by: Scott Falvey

@Daniel Christopher

@Steven DeMarco

@Dan Rowley

It seems DSCR loans are a good option when bumping into DTI issues. It seems good too that they require the rent income to cover the monthly payments as similar protection as the DTI is intended for.

Of course, as @Chris Seveney said, the market could change and make that positive cash flow negative, all the more reason to be conservative on the property analysis.

I appreciate the responses so far!

 Robin, yes - I have a contact at Easy Street. Just haven't gotten a deal that far yet. Thanks!

Kerry, are you saying you sometimes use the DSCR to pay off the owner financing?

 Thank you Chris, wise words to keep in mind while I'm looking for that property that will generate a fair cash flow to hopefully withstand a change in the market. I'll probably have to utilize some creative financing ideas and solid due diligence on my next purchase to avoid any falling cards the best I can. Thank you.

Thanks for the response Theresa. My W-2 has me working out of State from my wife so we have that figured out for tax purposes. I'm learning more about the creative financing strategies so I can not only buy my next investment but also get that income to get my DTI down.

 The last week of the month doesn't work for my current schedule but I might be able to shift that in the future. I'll have to keep my eye out for meetups in MD (Annapolis area) that are in the first week of the month at this point. But things might change - thanks!

I've been doing the "research and analysis" for months now. We currently have two properties. My wife claims one as a primary residence and I claim one as a primary residence and also house hack it so it is also an investment. I was getting ready to take out a HELOC on the "investment" property, alI I needed to do was sign on the dotted line. The bank that offered the HELOC came in with the HELOC at one number, the appraisal came in higher than what we had originally thought it might, so I asked if the HELOC could be increased. The bank said the HELOC amount being offered put me at the top of my DTI even though the appraisal would have given more.

That statement concerned me because we want to purchase another personal home in about a year and because of that statement, I withdrew my HELOC application.

How do I go about investing in properties and keep my DTI down where it has minimal affect on a personal purchase in the future?

My general strategy is to buy and hold, mostly LTR but will probably consider MTR too. Should I make my investment purchases in an LLC and use DSCR loans when owner financing isn't an option.

So, in general, I'm bumping up against my DTI based on my w-2 income. That puts a damper on what we can borrow in the near future for a personal home. How do I keep investing with minimal or no impact to my personal DTI? Let me know if more information is needed.

Thank you

Thanks for the quick reply Alex. I travel out of the State pretty frequently and trying to be able to schedule getting to a meet up on a fairly regular basis.

Is the meet up always at the end of the month?

Investing - 1: to commit (money) in order to earn a financial return (Merriam-Webster)

I think this is what we're all trying to do, at least this is what I'm trying to do.

The definition certainly brings things back to basics.