All Forum Posts by: Wendell Butler

@Julee Felsman that was some amazing information! Thank you so much. I am going to sell my condo to create that 6 months reserves, plus that’s crazy they don’t let you cash flow if I kept it... just another reason to sell it! Condos are a pain from what I’ve heard anyway and I am not looking to have them in my long term portfolio.

Do you have experience with people that do not have 2 years landlord experience, but just one and they get qualified including the potential rent? I have one year, but not 2 years. Do you think additional education would help persuade lenders to consider since I do not have 2 years?

Also I agree, I think I will try to push for a triplex, but if a duplex shows itself that is a good deal, I will not let a good deal slide by!!

@Jeffery Callis absolutely, trust me I definitely thought about it! Thank you for your input, I definitely appreciate it!!

@Jeffery Callis it's not enough equity unfortunately to pull out a line of credit. For me as well I am looking to not have condos within my portfolio, mostly due to the high HOA fees and rules using them as rentals from the HOA. I do not like the idea of having an HOA dictate how i utilize my property. They seem to be a pain, so I'd rather sell and pull out the equity I have to invest elsewhere, use it to help fix up my next investment, and keep some as reserves.

@David Pere true, I did read up on that as well. Good point!

@David Pere thank you, I agree I really want to use the VA loan for my house hack because there is just so many good benefits of it. No money down, no PMI, sometimes lower interest rates. The problem is my personal income, so the "potential future rental income" is what I need to figure out how to get calculated into my qualification. I'll have a year of landlord experience when I look to do this move, so I am hoping I can find a lender who will allow me to use potential rental income so I can qualify for more. I know lenders for VA loans normally look for 2 years experience, but I am sure i can find a lender that will allow my 1 year experience. Duplex's and especially Triplexes here get pretty expensive, so calculating the future rental income will be a huge help to open possibilities.

@Steve Vaughan good points! And yes I would like to utilize the no money down, no PMI VA loan and save the equity from selling my condo for additional investments and reserves, but if I get better opportunities going conventional I may need to go that way. It just may stretch me thin having to put down a large down payment, so it's all about the numbers for me, but I am flexible!

@Jon Kelly yes absolutely, I am keeping my options open. I think if a duplex presents itself that’s a great deal compared to a triplex that isn’t as great, I would pick the duplex. All about the numbers for me.

@Wa Chan those are some good points. I am looking to have a roommate on my side as well (so that will give more cash flow). I’ll have to see if that qualifies for potential rent, not sure as well if only the separate unit rent counts. I feel a triplex may be the way to push for.

@Adam Melon haha that’s true, sales is sales! Good to know, I just need to report it on schedule E for this years taxes correct?

@Justin Reed that would be great, I will reach out.