Real Estate Investor · Los Angeles, CA · Member since 2013 · 98 posts · 48 votes
We have a beautiful 5 bedroom 3 bath that we are going to be renting for $5500 a month and are considering lowering the income requirement. Normally we usually require income of 3x the rent or at the least rents being 40% of the income. Our thought process is that a family should be able to easily live on much less than $11,000 a month after housing is paid for.
We are in Los Angeles 2 block from Culver City if you were wondering.
What are you thoughts? anyone tried doing the same and found it worked or discovered problems?
Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
11y
@Alma Mills House rules for bank is 43% of your gross income, less monthly expenses can go to housing, banks established that for a reason, to keep them out of trouble, adjusting your criteria might be possible, but you aren't that as secured as a bank. Also remember, the higher the person's income are, the more their spending habits, the more volatile they are as to handling finances when S hits the fan.