All Forum Posts by: Winston Covington

Hi Mel,  We are of like mind and share similar goals. I recommend that your first line of defense be that you require all tenants to maintain a good renters policy naming you as additional insured. Next, make sure that you have the strongest Landlord protection policy on the market. I should have said this sooner but do your best to maintain your rental properties in good shape keeping a keen eye out for any possible safety issues. Last, get a high limit umbrella policy to cover all assets.

I own several investment properties and this is what I do. However; I would recommend spending some time with a good asset protection Attorney to see what else can be done to protect yourself.  California is a very litigation prone state and the Courts favor the tenants.  Be careful and good luck.

Properties in Southern California are easily appreciating at 1% per month.  Let's say that you did have to bid over the list price to win, within a few months values will catch up to what you paid for the home. At the same time, you're locking in an interest rate that is near 50 year lows ( average interest rates for home loans over the last 50 years is 7.9% ) . Once you factor in the savings of a great rate, pull the trigger and buy your home.  Even  if values drop a little, time, appreciation  and a great interest rate will make your home a Winner.

I had the same problem when I was purchasing property # 7 in my name.  There is definitely a Fannie Mae requirement which requires a higher mid Fico score than the previous 6 properties. You can either pay down / off some debt and go for a rapid rescore on your credit or shop around for a more lenient  lender.  I shopped around and found a local lender that would fund the deal at a slightly higher rate but still attractive.  It was for a nice single family home in a great neighborhood which produces some good positive cash flow.   So... in the big picture of life, it was well worth it.  Good luck.

Hi Nick 

In California, as soon as Escrow has mutually signed cancellation instructions...your check is cut for your refund. The exceptions would be: 1.  Your deposit was just made and it hadn't cleared yet or 2. Your contract called for a contingency period which had expired prior to your request for cancellation.  In a normal situation, you would get your check right away.

I don't know if you use Escrow Companies, Title Companies or Attorneys in your state but 6 weeks seems way too long. Your Agent should be able to help you resolve this matter.

With today's low interest rates, I would go with a solid fixed rate 30 year loan. HELOC's for the most part carry an adjustable rate and they will definitely go up in time. They are also for far shorter periods of time vs a 30 year loan.

I would recommend using the most experienced, licensed and certified Appraiser in your area.

Hi Michael, please define a DSCR loan. Thanks

Yes, as long as you have the Cash for the down payment, closing costs and reserves for all of your investment properties...you should be good to go.  Good luck  :-)

Hi Brittany.  The question is whether you were pre-approved for a purchase price of $ 180,000 or a loan of $ 180,000 ? I'm going to assume that it was for a purchase price of $ 180,000 which for a non owner occupied loan, you will need at least 20% down.

That would leave you with a loan of $ 144,000 and a down payment of $ 99,000 to complete your purchase price of $ 243,000.  If you were approved for a loan of $ 180,000, then you would be ok to make the down payment of $ 63,000.

* Note * Check with your lender to find out what cash reserves will be required for your purchases. Lenders are requiring anywhere from 6 to 12 months of payments in reserves for each property in your portfolio as an investor.

Start with the local Apartment Owners Association in the cities / metropolitan areas that you’re interested in.