All Forum Posts by: Severino Cuison

Thanks @Zach Wain. Your comments are extremely helpful! Cheers, -S

Thank you again @Zach Wain , that is extremely helpful. One more follow up question. You mentioned about getting leases from the non-subject properties to use for mortgage application on the next subject property/ies. I plan to do month to month because I found out that it gives the least headache: I give them 30-day notice when I don’t like them and they leave freely whenever they like also after 30-day notice. So my question is: in applying for mortgage, do month-to-month leases carry lesser weight than say 6-month leases on your non-subject properties? I wonder what is the take on this. Thanks again and happy holidays!

Hello @Zach Wain , thanks for the reply. I actually plan to buy one of those newly built properties (e.g. KB Homes, Pulte, etc.) and then rent them by the room, so there is no rental record whatsoever. In fact, I was wondering if it is even possible to get an estimate/projected rental if it is a property that is still going to be built. Again, I like new properties because their prices are really not much of a difference from older built homes - which means lot less repair cost. And as I have said, I have been very happy and successful renting by the rooms the past 2 years. I can use my W-2/tax return to buy my next 2-3 properties, but if this is the business model that I would like to adopt in the future, I may not be able to keep using my regular income to acquire more properties. So does an appraiser's opinion apply also to newly built ones or still going to be built properties, am I correct? Thank you so much for the input and I really appreciate it!!

Thanks @Chris Mason. Based on what you have mentioned (i.e. overlays), it is my understanding that it does depend to the lender. Therefore, I think the best thing for me to do is get in touch with the local banks and ask for their specific requirements. So I guess it's time to say hello to Phoenix small/community banks. No longer interested with conforming Fannie Mae/Freddie M as I plan to put everything on LLC. Thank you again.

Thank you @Janea Crum and @Chris Mason for the input. So does the requirement depend on what kind of loan you are getting? Or will it differ if you are applying through big banks versus local/small credit unions? I wonder if there is a formal guideline that is being followed. Thanks again for the information!

I am planning to sell my house located in Stockton, CA and buy 2-3 single family homes in the Phoenix, AZ area to have better cash flow. I currently rent my house by the rooms, and I have been successfully doing so in the past two years and I want to continue to do the same business model on my next rental properties. I can do a conventional loan for two single family houses with my full-time job, but my wish is to buy three. I will have 20% down payment for three single family homes using my current house proceed once it is sold. Buying three, however, will stretch my DTI. I plan to buy brand new houses; their prices are not much different from old houses plus I get the advantage of not dealing with house repair/maintenance with an old house. When I apply for a mortgage, can I also use projected income that I may get from a new house without rental history? What about from a house that still to be built by a builder? Thanks for the input! I really appreciate it.