All Forum Posts by: Gayla Kemp

Looks good.  

I am in need of short term rental insurance for a cabin in Oklahoma. I see here on BP that several people are using CBIZ. I found Proper Insurance Services, LLC online and their quote came back around $500 per year cheaper. Just wondering if anyone knew about this company.

Thanks, Gayla

Thanks Dave, that is what I was thinking, with joint returns, it should be okay. Yes, it flows down to our married joint filed tax returns on Schedule E. So, if I brought it down to my self and added my husband to close this under a 30 year mortgage, it would still be on the married joint filed tax payer return. We are only bringing it down to joint individuals for the 30 year mortgage purpose and then re deed it right back to the LLC.

1031 guy told me that we need to do tenant in common ownership on the contract and on the deed. Is tenant common ownership really written on these things? I don't recall in the past writing a contract as "joint ownership with survivorship", they were always written in our names only. So, would the tenant in common for the 5-minutes of title be on the contract and deed or just on an agreement? At the end of the closing it will be deeded to the LLC. We live in Oklahoma.

Main reason for asking all of this is that I have already submitted a contract for the replacement property as our individual names only, not adding tenant in common to the seller.

We are not a partnership. The LLC is a sole proprietor LLC owned by me only. The LLC is looked at as disregarded entity so it is always me as the LLC or myself.

I am looked at as the same person due to single entity so I know I could have it in my LLC or my name, it is the question of % of ownership adding the husband.

Have a house closing under a single member LLC selling for $145,500. We will be doing a 1031 exchange and then taking those proceeds and applying them to a vacation rental cabin investment of $264,000. We are getting a 30 year joint mortgage on the cabin and then after it closes, redeed it back to the LLC. The 1031 exchange guy is telling me that we need to devy the shares by tenant in common ownership. He says the contract and deed both need to be written as tenant in common. Question is this. How do you write this up on the contract correctly? Is this really on the contract or is this an agreement done outside of the contract?

Thanks Robert, I was thinking about a mortgage broker

Todd, I appreciate the advise.  I had asked that banker to see if I would be preapproved on the loan and could not believe they did not include that income.  Husband has been at this job for 8 years and yes these items of overtime/bonus/safety award are always there.  Overtime is guaranteed as it is a requirement.  If this does get considered, I believe we would also be okay.  Kind of gun shy to get declined again.    Will give it another try though.

Forgot to add our primary residence is $1001

I need to see if anyone has any insight into this. My DTI score is at 48% high for a couple of reasons.

1.Husband has hourly job with required overtime and bonuses.  Only base is looked at which leaves out (rounded numbers) $11,000 as of 7/17/15 and at Year end will end up being about double this.  For 2013, this would be $15,000 and 2014 was $21,000.  This is going off of Gross pay on his check stubs.  Looking at the W-2 for 2014 his pretax deductions were $9307, so understates his gross pay.  What do the underwriters look at?

2.  $200 credit card minimums - pay credit card off except for cards with 0% interest

3. $676 -  2 car payments, $305 and $371

4. $100 Heloc loan

5. $580 rental loss from last year carried forward as a payment

6. $1700 new property - calculated using conservative numbers, real numbers would make it $1469 based on a 30 year loan.

DTI when he ran the numbers came back at 48% , with my new loan amount it would be 46%

2 questions

1. If I find an investment loan instead of a second home, is DTI still looked at? Is rental income of the new loan allowed to be added as income? What kind of down payment is required?

2. To change my expenses, I could pay the $371 car off with either a credit card, payoff is $13,000 credit card limit is $20,000, see if the credit card company will give me 12+ months no interest and just raise the minimum a little. Or pay it off from an advance on the HELOC which would then make the interest payment go from $100 to around $150 per month making this a $38,000 balance out of possible $50,000 that can be drawn. Would this help my overall credit rating and solve my DTI problem? Credit ratings now are around 780. Not sure if this is sensible to do. If we do this, how long is would it take to show the reflection on the credit report?

Have a house for sale that we will walk away from the closing table with about $52,000, will set $6,500 back for taxes and the remainder can be down payment on the vacation house and/or pay the car balance off, depends on the required down payment on the vacation rental.

Any advice would be nice

Thanks, Gayla

Thanks Dave.  I figured it would go off of the way tax returns are filed.  Yes, I will follow the guidelines on the vacation rental and not exceed 14 personal days of usage.  I also know the 1031 has the additional form to file at year end.