All Forum Posts by: Sean Larson

I really can't understand your post but the amendment was to depreciate things which did improve DTI.

Hi all, I'm from Grand Rapids, Michigan and I recently had my tax returns amended. Upon telling the lender I was working with about the amendments they informed me that their policy is that they will not lend to anyone who has had an amendment within 6 months as to avoid people who would amend their taxes in order to appear to have a higher income and hence get the loan they want. My amendment also did just that as I had expenses that should have been put into depreciation schedules (as they now are). 

I have a good cash reserve but not enough for cash offer + rehab cash so I'm wondering if I have to just sit on the sidelines for another 6 months (the amendments took more than 3 months but that's a whole different story) or if there is some other way that I just don't know about? I'm not talking about owner financing either. 

I don't know if this is just their policy or a Fanny/Freddie rule either so maybe it's not going to be a problem (waiting on that answer from lender). 

Thanks for any input!

Sean Larson

I'm in my current residence in Grand Rapids, MI for almost 2 years now via FHA. I refinanced in the spring but now I'm wondering-Does the must-live-in-your-fha-house-for-a-year, rule apply to the house after the refi or does it just go by purchase date?

I'm going on two years with Qwest Property management and they have dealt with all things very well. No complaints and no plans on changing.

Thanks Brent,

Yes I'm open for "more" however with just 2 properties and 2 years experience I don't know how I would look to a lender when applying for an investment LOC.

Hi I'm in Grand Rapids, Michigan and have been looking into refinancing or a HEL on my current owner occupied 3-unit home. Some banks are saying they will not do a 3 unit even though it's primary residence in regards to the home equity loan. 

I'd like to do the HEL so I don't lose my 3.25% rate on my current FHA 1st mortgage. Any thoughts? Any banks or credit unions that you know of that will do a HEL on a 3 unit?

Thanks in advance!

-Sean

The day you bought the property is the day you signed up to maintain it to housing standards. If you have them leave while it is fixed you will be on the hook for comparable, temporary housing. I've gone through this myself with projects that became longer than I thought while tenants were present. I prorated one tenant's rent to have him not be in the way during a remodel. It hurts but that's all you can do. They are your customer and you can't put anything on them. They need to have a safe, livable unit at all times. 

If there is a mortgage in place that might make it illegal. Usually at closing one of the many documents you signed is one that says you will not use that property like a hotel. I do not know how many days/months something has to be "rented" for to make it a rental vs. hotel.

Thanks guys and "hey" Justin!

I'm wondering if any investors who started out as DIY'ers on their first properties (or all) pursued a builders license, did the work off the record or perhaps have any insight into the thought altogether? 

I'm in Grand Rapids, MI and it's hard to find bad help here let alone good contractors with all of the crazy progress our city is making. Everyone is SWAMPED. If I had a dollar for every time a contractor has bailed on an appointment or job...

I've done almost all the work on one property myself and saved myself tens of thousands of dollars but if I continue to buy then I legally can't work on the next one unless I live in it. I'm also interested in the idea of having that license since I could then bid and perform other jobs (not likely with time constraints but maybe someday!). Besides, I already have the Lead based paint certification which is a part of the process anyway. 

It seems like the knowledge from the class, the license and the $500 it'll roughly take would be well worth it. 

Thanks for any input!