All Forum Posts by: Account Closed

@Aaron Port I by no means am a experienced investor but I was dealing with the same issue you are I just simply worked more..I cut my bill's down as much as I could and found a way to get more income on paper, got a 2nd job, my girlfriend got a 2nd job, the bank will be happy to see more money on paper and you can use all the extra money to work on the debt that holding you back

@Chris Mason thank you!

I've read mixed things and was not able to find a previous post on the subject but has anyone been able to use the projected rental income towards your DTI ratio to be approved for an FHA? I did an FHA on a single family, lived in it for a couple years, refinanced into a conventional and rented it out for a year. Since I have renting experience (which I've read is a qualifying factor to be able to use projected rent income towards DTI) will I be able to use that towards my next multi I plan to do an FHA on? Or does the projected rental income trick only work with higher down payment investment loans?

@Jason DiClemente 4.7%, it seemed like I was missing something because it was my understanding without owner occupy I would need at least 20%. That still could be the case I was just curious if anyone had heard of such thing.

Hello, I've read a few post on here about this subject but really no hard answer. Can I buy a single family home with the intent to immediately rent with a low down payment conventional loan? A local bank offers a 10% down with no PMI and they don't say it needs to be owner occupy but nothing about using it as an income property? Surely some of you have had experience with this. Thanks

@hai loc it is on it's own lot, taxes last year were $285

I have an opportunity to buy a mobile home for a decent deal, it's just over 20 years old so most banks won't do financing but a local credit union will do a 20% down 10 year at 9-10%. It rents for 750/month right now and I think I can get it for $30k so my payment would be around 300/month, taxes are next to nothing. Do you guys think 400/month cash flow is worth up to 10%interest? Would you pour the 400/month back into the loan or invest toward more REI?

@Steve Walko I am in a very similar situation but I'm 100% in favor of leaving my "bad debt" where it is and start REI. I get awesome tax breaks and I end up paying under 2% interest. I started a thread similar to this and I heard a lot of the same things they are saying here. (don't tell them you have a bran new truck btw they think you're some sort of devil)

What I find most interesting is they get so worked up about risk. Well what is more "risky", pouring all your spare cash into you loans, because you're so scared of loosing your job or whatever else may happen. Or establishing a 2nd or 3rd source of income so if you do loose you job you still have some money coming in but still having the school loans hanging over your head.

You don't need to live like a homeless person to have school debt and be a successful REI in my opinion. Set goals, meet them, and enjoy being young. That's how I live my life and I think I'll be just fine.

For me its more about the numbers and less about the risk, I have a degree/license in a very strong field and I would rather "risk" it and make 15-20% on my money than wait 3-4 years because I don't want to pay <2%. When you look at just the numbers it's a no brainer of course.

@Jeff Brower thanks, I figured that might be the case

I am currently renting a SFH, and had planned to for another year and then house hack a 3-4 unit multifamily next spring. The opportunity has come up to buy the house I'm currently renting for a good deal. I would just live in it for the year and then rent it out and stay with the plan to house hack the multifamily.

I wonder how the house will effect my lending limit on the multifamily. So, would it be a good idea to have my girlfriend pay me rent through a lease and everything? Then the bank sees the house as having an income to me and actually helping my DTI.

I've also read a little on here that while using the FHA loan the lender may add the future income from the multifamily into my DTI but only if I have a record of rental income in the past?

The other thought is to just have my girlfriend buy the SFH in her name and then the multifamily in my name, then the when we move out and rent the SFH it will help her income since I earn a considerable about more than her. (I know what you're all thinking but worst case, she keeps the house, I'm out the 2,500 I give her to put down on it but I'll save twice that in rent in the next year)

I hate to pass up the opportunity to buy the house for a good deal but I'm more focused on getting into a multifamily in a better area if it would effect me. The multifamily I'm looking at building is around 300k and the SFH around 65k. I haven't spoke with the bank but according to the calculator on the FHA web page I would be approved for around 325k before I bought the SFH. I plan to discuss with bank but many of you seem to know more than the lender I've been talking with.