All Forum Posts by: Willin Smarda

Hi all,

I understand from the many post that only 75% of the rental income is considered as income -PITI= $$$ <- if positive, additional income, if negative, additional debt.

I came across a recent post that is confusing me to the extreme. Can someone please clarify what is going on here? Preferably someone experienced who has gone through this or lenders can chime in exactly what is going on and how it works?

Here is the post I am referring to: https://www.biggerpockets.com/...

According to Andrew Postell in that post, the following is added back thus reducing DTI for lending purposes:

Depreciation, Insurance, Mortgage interest, Taxes. As an these are beneficial to reducing tax-able income as well as not reducing your income when qualifying for a new mortgage. Am I understanding this correctly? It totally contradicts the whole 75% of rental income -PITI calculation.

Can someone please give a real scenario?

Hypothetically speaking, according to that post: 

If Rental income is monthly: $1500, assuming no repairs were made for the year. The only thing subtracted from this amount for lending purposes would be the principal payment? Seems to good to be true but really want to confirm this with you professionals. 

THANK YOU ALL!!!!

Hi Michael,

Thank you so much for your reply.

I have considered the electrical lines etc. nothing is in the way, besides a wood fence (I own) that I dont mind breaking. If you dont mind I have a couple more questions. I dont know about the setback part, how would I find out? I have started contacting a couple contractors asking if they ever dealt with moving a house, but they have not and didnt feel comfortable playing my chances with them and going through at the moment. Im still calling contractors and going to call a lot more on Monday as most seems to be closed on the weekend. Also if the developer does give the get go/seem interested what do I do next? What would I do at the building permit? Can they answer my questions? Sorry Im such a noob. Im having a hard time finding out if relocating a house is considered a new house aka if it would have to comply with new building codes or grandfathered. Just at a curiosity have you ever dealt with structural movements? 

@Account Closed

Hi Michael,

Thank you so much for your reply. 

I have considered the electrical lines etc. nothing is in the way, besides a wood fence (I own) that I dont mind breaking. If you dont mind I have a couple more questions. I dont know about the setback part, how would I find out? I have started contacting a couple contractors asking if they ever dealt with moving a house, but they have not and didnt feel comfortable playing my chances with them and going through at the moment. Im still calling contractors and going to call a lot more on Monday as most seems to be closed on the weekend. Also if the developer does give the get go/seem interested what do I do next? What would I do at the building permit? Can they answer my questions? Sorry Im such a noob. Im having a hard time finding out if relocating a house is considered a new house aka if it would have to comply with new building codes or grandfathered. Just at a curiosity have you ever dealt with structural movements? 

Hi everyone,

I just created this account and hope I am posting in the right section I have been a long time reader on this site actually but first time posting. I cant find a lot of information on what I am trying to do so I am hoping you guys can give me some insight/guidance or point me in the right direction. Right now I live immediately next to a property that is about to be developed into commercial. It has fairly nice home with even recent renovations done to it. I am trying to get the home and have a structural relocation company move the home to my yard in the back as I already own two lots. Im assuming I would have to create a new foundation? How do I go about this? Who do I contact? I am really new to this and think this is a very good investment opportunity for me. The house itself I believe is worth 400K+. Im assuming the development company is paying someone a nice amount for demolition. I would like to offer the development company that I will move the house for the cost of half the demolition cost they were going to pay (how do I find out how much they are paying?). That is where I am very very confused (as well as being confused for this project in a whole). What would be the best way to offer this proposition to the development company without sounding like I am desperate and instead make it sound like I'm doing them a favor. Should I get a lawyer and have them make an offer on my behalf? Or call the development company myself and talk with them? (I also know them a little personally as I was originally against this development but thats a different story.) Im hoping you guys might have some experience in such things? Also I dont know the exact cost of demolition and dont know how to find out asI dont own the property, the development company does. Mind you I live in a pretty nice area and I can imagine demolition being very expensive, so I believe this is a benefit both ways. PLEASE HELP. Sorry for the very long post. I tried to sum up as best as I could. THANKS!!!