All Forum Posts by: Wilfred Mkilindi

@Gilbert Chan in the same situation, duplex that has a huge garage and thinking of converting the garage to another unit and make it a triplex or just a free standing single family home next to the duplex. How did your situation go? 

   Thank you all for the replies, to be clear the deal am trying to get my bank verified everything as in income, credit and all that (all this happened before furlough, my furlough is just for two weeks meaning mid May to end of May so June 1st i should be back to work but fear is on the possible layoff coming).
    I have a pre approval in hand made an offer seller accepted bank was notified we ordered inspections (to be done next Friday the 29th, appraisal will follow and these two steps can take maybe 2-3 weeks depending on who is available and when. I have down payment (20% set aside because this is gonna be a rental want after closing, get new appliances and post it ready to be rented), now if the bank will want to verify my income again at closing thats gonna be tricky because i will just be back from furlough with possibly one paycheck only to show for and that is if pay period is in my favor.
I have 1 month emergency fund saved that can cover my bills although that is not enough as it is recommended 3-6 months. 

But i have already put applications out there for a new job and still putting more just in case my current job things get worse. 
Will keep you all posted and thank you for everything you shared with me.

@John Edwards thank you man and maybe be this could be the start of a beautiful ending as long as i stay focused and do the right things. This is one of the many reasons we have BP. 

@John Edwards i got what you mean and thanks for sharing, now am scared. Good thing we have a 3 day weekend so nothing will be happening until next business day, let me think about what i can do if i do not find anything i will just have to cancel the deal. What a way to start and fail for a newbie. 

@John Edwards and @Wyatt Franta my furlough is not bad as it is just two weeks but the scary part is the news about possible layoff coming. Hope my first deal goes through as am currently putting in applications for a new job in case i lose my current job. Everyone here who has been hit one way or the other due to COVID19 hope we bounce back strong.

Thank you 

@david 

@David Paul Westenberger i have started doing that but as you know most companies have kind of frozen hiring for the time being just to keep costs as minimum as possible until things get back to normal. Am preparing for the worst but hoping for the best, thank you

Just when am working on my first deal on a small SFH to get my feet wet in REI got furloughed (my full time W2) and there is a possibility of layoff the company is looking at. What should i do about REI, i dont not want to be discouraged i want this to fire me up getting financial freedom. FYI my first deal we just ordered inspections today if everything checks out ok i guess appraisal and closing will follow, this will be a rental.

@Aaron Linden thank you never thought about that, was only thinking about tax returns from my W2 income

@Nicholas L. thank you for the response, i will call local lenders and see what they say

Hi everyone, have a question.
Lets say by DTI ratio is 42% the income part being from my full time job only and i happen to qualify to buy 1st rental that is renting for lets say $700/month with a cash flow of $250/month, 6 months later i want a 2nd rental but now i have a new loan (1st rental) on my credit meaning my debt went up as well as new income from 1st rental.
When lender is calculating my DTI ratio to buy a 2nd rental, income part will have my full time job and what part from 1st rental, is it the $700 or $250 cash flow? 

Thank you