Conventional Loans & Partners - "Rules" and how it works?

[Daniel Dietz]

Hello All,

My partners and I have grown to 30 rental units in our local area and things are going very well, thanks in a large part to what we have learned here on BP. So far we have used almost all Portfolio Loans due to having a 3 way LLC or non-recourse loans for ones that we own in our SDIRAs and SOLO401Ks, so VERY little experience with Conventional 30 year loans.

We are wanting to switch to 30 year Conventional Loans for some we are going to be purchasing shortly to take advantage of historically low rates on top quality properties that we plan to hold for at least 20 years or most likely indefinitely.

We would likely be doing the deals where one of us brings 100% of the down payment and the other does all of the PM over the years, and split both cash flow and equity growth 50-50.

Some of my questions are;

1. 1) Do we both need to 'be on the loan'? I am wondering this in relation to 'not wanting to use up our 10 loan limits'.
2. 2) Does Title have to have both of us on it exactly the same way as the Loan does?
3. 3)If down the road one of us wants to sell out to the others, can title just change and the remaining partner just keep paying on the loan?
4. 4)If we get one/some of these deals before the end of the year (think November) and have it on our taxes would that 'short year' count as a 'tax year' for that property?
5. 5) My understanding is that a common way for banks to do the projections when we dont yet have 2 years of taxes is to take (Rental Income * .75) - PITI = 'cash flow' that is added to your income for DTI purposes. Is that accurate?
   

Thanks, Dan Dietz