Hi Naveen...thanks for the reply.....You're right $200000 is non existent in our area so Im actually looking out of state...Going to Austin on January 30...I understand the trends are very similar to the Bay Area...lack of inventory,multiple offers so on...that doesn't scare me away ;0) For my dolling up and reselling goals I do have a larger budget so will look here in the SF Bay Area....Love your email....What ate your goals?

I was missing out on a lot of good inventory in 2009, I wish I had been more educated.......roll on 3 years and I was told by a broker who deals a lot with BOA REO's.

From what I understood, it has something to do with the involvement of the government in the way Fannie Mae and Freddie Mac operate (the Federal Takeover of 2008) As I was explained, the new DTI requirement will apply to private portfolio loans, but not to loans that will be sold to Fannie Mae and Freddie Mac (Conventional loans).

Hello All,I currently have a conventional mortgage for my personal residence and one rental property.

On the other hand, if you are getting good return on your money in your 401k (more than you would pay back to your self on the loan), you can also explore doing a conventional financing.

But I have a quick question.For investors who have short sale on their record, is it possible to convert a hard money loan to a conventional loan?

I'm looking at one right now in Illinois and would go with a conventional loan.

Listing price is 368k but may likely go for 400-420k (especially if doing conventional or FHA).

You have a current, documented source of income (no conventional lender is going to give you money if you don't have a documented source of steady income.)Your large savings will help your case, your other property may help or hurt (lenders count the property taxes and other property expenses as debts you have to pay.)

As for exit strategy, I haven't formulate an exit strategy per se; I thought you just give the conventional handshake after kicking the tires.