All Forum Posts by: Tanner Johnson

Quote from @Jay Hurst:

Quote from @Tanner Johnson:

I am going to keep it simple. I am 21 years old own 2 houses outright that I have full equity in worth about $400,000 together with no loans against either of them as well as another house with a mortgage on it. They provide the bulk of my income as I am a college student. My net cash flow from those 3 rentals is about 3500 a month and my other venture earns about 2000 a month. I want to get as much cash out of the two houses as I can to invest in other properties, I Have my eye on. Problem is they will not consider the rental income when I am applying for these because there is not 2 years of income history on them and my other income is not enough to qualify for the refinance. What can I do to rectify this as I do not want to wait 2 years to be able to pull out equity and get more deals, any questions ask thank you.

 @Tanner Johnson    Do you show the rental income on your tax returns?  If so, you should absolutely be able to use the rental income to qualify. You will even be able to add back deprecation as it is a non-cash loss.  

If you purchased this year and it is not yet on tax returns, you would be able to use 75% of the lease. 

 I have only owned them for about a year, and I did show them on this year's returns but it seems like lenders here are either 2 years or nothing, I live in a somewhat rural area so I may have to explore my options outside of this town unfortunately. 

Quote from @Taylor Dasch:

Check different lenders, A lot of lenders that I have spoke with are able to use a portion of the rental income if it hasnt been 2 years yet. You are killing it in college with 3 paid off rental properties. How did you do that? If you cant do a typical conventional loan, I am almost 100% certain you will be able to do a DSCR loan, especially since you own them outright. What state are you in? There are a lot of great lenders on here that specialize in investor loans.

Thank you I had a pretty simple strategy, Between 6-7 years of saving and only buying materials on deals I was actually able to build them myself with the help of an experienced builder (grandpa) for about a 3rd of what they are worth in my market and the only way to really realize all of that gain would be to cash out or sell, but definitely not selling as there is a lot of sentimental value for me. But I will do a little research on DSCR as I don't live in a heavily populated area in Kansas and all of the banks I have talked to require 2 years or no-go. Doesn't make sense to me but they have the power. But would love to have the cash to put a down payment on 36 apartment units that my grandfather owns ( Smoking deal for sure) so I can really get the ball rolling and scale. Don't want to miss an oppritunity.

I am going to keep it simple. I am 21 years old own 2 houses outright that I have full equity in worth about $400,000 together with no loans against either of them as well as another house with a mortgage on it. They provide the bulk of my income as I am a college student. My net cash flow from those 3 rentals is about 3500 a month and my other venture earns about 2000 a month. I want to get as much cash out of the two houses as I can to invest in other properties, I Have my eye on. Problem is they will not consider the rental income when I am applying for these because there is not 2 years of income history on them and my other income is not enough to qualify for the refinance. What can I do to rectify this as I do not want to wait 2 years to be able to pull out equity and get more deals, any questions ask thank you.

9% is bananas right now...

@Matt Devincenzo I do not live in any of them, my 2 in my home town have one year leases and my recent purchase in my college town is fully leased until mid next year. I don’t plan on moving as I live in a house with a group and my rent is very cheap. Just a simple buy and hold and I have the 20% down. I will research the options you outlined and I appreciate the reply, I am very interested in the student housing market and have a few very good deals 11-14 Caps that I want to make a move on

@Tanner Johnson FYI I do have a very qualified co-signer if absolutely need and it would be no issue but I would really like to do it myself if possible

So I have ran into sort of a road block, I am a 20 year old real estate investor and I currently own 3 SFH. I own two of them outright and I have a mortgage on one but it is still cash flowing over 600/m. Overall my net income from my properties is about 2300/m. The issue I am running into is that I am now in college and not employed , when they hear that it's almost an instant no which doesn't really make sense to me because it's obvious the mortgage payment is made from the rent. I have a really good opportunity to scale into student housing in a university town so I would appreciate some suggestions on financing possibilities, little money down is even better but 20% is fine

So this whole time I have been under the impression that you can get conventional mortgages on rental properties without occupying them yourself, I already own two houses but they were paid for in cash so this will be my first time borrowing but I spoke to my banker and he said that if you do not plan to live in the residence 60 days after closing that they must me financed as a commercial loan, he said this is not a bank policy, but a Fannie may or something like that, I would really light some insight on this because I am new to the world of lending and 5% down and lower rates sounds way better than 20%, thanks

The worst thing to do would be to just let it set as is. Get something in motion as soon as you can especially with rates being so low. Explore your options but now is the time to do it.

@Braulio Espinosa As far as the law and code goes they shouldn’t have any grounds to fine you or anything if it passed final inspection, and there are tons of houses in any given city that violate setback requirements. I’m not sure about the financing but I don’t imagine it would be an issue.