All Forum Posts by: Shaun Weekes

So, if we were to use a traditional mortgage route to buy a Rental Property, the underwriter will have to check you income from job, others, as well as credit, amount of money you have and also any assets. Each one of these has their own "calculation" that the underwriter uses to choose whether to fund the loan or to deny it. When it comes to income they have calculations like .40 or .50 of your income has to be more than the housing costs (all your costs). So if I made $5000 a month, then they would look to see if the mortgage, taxes, insurance total no more than $2500 a month, if they use the .50 calculation. What doesn't make sense if that even I had enough cash to buy the property in full, but decide to get a mortgage instead, that they can't just use the cash in the bank amount and not need to use the job income number at all. I mean you have enough cash already for the full price, but you want to leverage anyway. 

Another quick example. Let's say I have $100K in cash, and I want to buy a property that is 50K, and I woulds rather put 12.5K down and get a 37.5K traditional mortgage. But I don't have a job, say I am retired. I would be rejected by the underwriter only because I have no job/income. Even if I have $250K in cash, with that same property I think the underwriter would reject it because $0 monthly job income doesn't pass the .50 calculation.

That doesn't make sense.

Anyone know of a bank/mortgage lender, not a portfolio loan, but a traditional mortgage that would lend to someone that has 2-5X more in cash and assets than the total of the loan amount, but no job income.

Thanks

Mark

We are adding a vacation rental in the Orlando area and looking for a loan officer that understands STR financing. Any suggestions?

I have a rental property that I’m looking to refinance. I reached out to a local credit union to help with the refinance and was told that they couldn’t do the new loan because of my dti being close to 50% and also they can not use any of my rental incomes (close to $60k yrly) because I haven’t been receiving it for 2 years. My personal income from my job is $113k, my 3 unit is $3200 monthly and my single family is $1600 monthly. Using my rental income would put my way under 50% but they refuse to use it. Is this 2 year seasoning standard across the board with all banks or is it just this bank?

I recently paid cash (160k) for a rental.  I’ve since decided that I’d like to tap into the equity.  50% or more.  I don’t qualify bc I’m not currently working.  I lived off rental income until March, when I sold the place. I’d like to find a non-qualifying mortgage lender who serves Georgia, but I can’t seem to find one that is truly “no documentation” needed.  I’m not interested in hard money lenders.  I welcome all suggestions.  Thank you.

An entertaining question for most I'm sure.  Don't laugh.  My soon to be ex-husband and I are separating, and I will be buying our his interest in the house.  He's decided he wants a set of flush mount speakers currently installed in the ceiling.  They're not worth much I suppose.  Maybe $100?  Technically I could argue about it, but my question is: how much is the appraiser going to care if they walk in an see four giant 6" holes in the ceiling?  Cuz I aint fixin it to help him. :-p

Right now, I have a property in Baltimore that has been generating income since September 2019. Once I have 2 years of experience as a landlord in September 2021, would I be able to qualify for something like a 10-unit apartment building that costs $1.5 million using the future income? I plan to use FHA for this kind of purchase too.

Currently, my income to debt ratio is about $3,500 to $1,100 (I split the $1,100 mortgage 50/50 with fiance and have no other expenses). Let's say the 10-unit apartment building is fully leased at $15,000 per month. At 75%, would I be able to add future $11,250 / month income to my current income to debt ratio to help me qualify for the apartment building? Is this possible?

If it helps, my primary residence, where the $1,100 / month mortgage comes from, is valued at $310k and I have $150k equity in the property. I am willing to rent it out at $2,500 / month and move into the apartment building for one year to meet the FHA requirements. I am also willing to refinance or HELOC the $150k equity if it will help with the $70k cash I have saved so far.

Thank you so much for your time in reading my question. Stay safe and happy investing!

Not discussing loaner or lender details here since my last post asking for recommendation was removed so please refrain from doing that.

I just want to know if anyone has recently refi their MFH rental investment property could share their rate? I cannot find anyone who can beat my 4.5% rate atm even with the current low interest rate market.

Hi Fellow Investors,

I am in contract with 30 unit apartment complex. Sellers, 3 months ago moved over Property from 3rd party Property Management company to his in-house property management company.

Questions:

1. How do I verify if the rents claimed in rentroll are accurate and not delinquent or incorrect besides looking at leases.

2. Can their be another catch or mis-representation seller trying to do by moving over property into in-house property management ?

Will highly appreciate your guidance or response on this

Thanks, Gary

I am an agent.  My friend is selling her house to her tenant. Seller lives out of state. Does not want to make repairs or have to clean the house. Wants this sale done quickly. There is a decent amount of equity and she just wants to make this transaction as easy as possible. So she is selling for aprox 20k under market value. 

3 identical houses, 2 blocks away, sold recently for 231-236k. We are under contract for 210k. Appraisal came back at 211k. Appraiser did not use the comps (listed above) but used 6 other comps, from a neighborhood a half mile away. 

I called the appraiser and asked some questions and then sent him the comps I had. He said that he set his search criteria for 20k above and below the sales price. So, he never saw the comps I had from much closer to the house we are selling. He did not state that my comps were inaccurate but just that if he came to an appraised value of 20k more than the sales price that he would have a lot of questions to answer from "government bureaucrats". 

Isn't that insane? So, if we were under contract for 230k (which is market value) - the house would have been valued differently by the appraiser? 

It's the same house. My seller is just selling at a discount for convenience - which has nothing to do with the actual value of the property.  It is an irrelevant factor. 

As a Realtor - having to explain this to my clients is fine, it's part of the job.  I like educating people on Real Estate.  But as an investor - this is infuriating. 

Any thoughts from my BP friends? 

Hey BP Community,

I've listened to a few podcasts recently and an investor was holding onto cash via pulling funds from his HELOC to his bank account (and eat interest) until COVID passes just in case his HELOC limit was reduced due to COVID environment. Is this being overly cautious or smart?

Thanks!