Investment Info:Single-family residence buy & hold investment.

Investment Info:Single-family residence buy & hold investment.

Considering that the back-end ratio needs to be roughly 36 percent in order to qualify for a loan, it seems that the mortgage costs associated with each newly purchased property should be 36% of the revenue generated by that property -- we might call this a 36% rule: mortgage cost / rental income = .36Please let me know -- is this feasible or advisable?

Investment Info:Single-family residence buy & hold investment in Austin.

Hi Micah, HELOCs will only go up to 70% LTV on investment properties, while for primary residences they go up to 90% LTV.

@Kevin Sobilo is correct, this property will more than likely not qualify for 1031 exchange treatment.

primary residence, a farm, my life savings and stocks --- there's alot of exposure. :')I'm curious if people do LLC and pay a higher interest rate, or do personal ownership and buy an ~$1MM umbrella policy to help protect.

Investment Info:Single-family residence buy & hold investment.

Last year, a few months after purchasing my primary residence, I took the leap and bought my first flip.While leverage knowledge from books, podcasts, talking to peers at meetups, Facebook groups, I connected with a great contractor, real estate agents, and subcontractors.

Then when it is complete, have property appraised and refinanced to pay back the hard loan from my Mother or other lender and because I overfunded, receive cashback at closing and either pay back into the new loan or wait for another deal once I get renter in on this place with me.My hiccups will be my income to qualify for the new loan, and the fact that I have an existing mortgage which affects my DTI right out the gate.