First time poster from Southern WA (Portland, OR area)

First time poster from Southern WA (Portland, OR area)

WA · Member since 2012 · 40 posts · 16 votes

Hello all.  I just wanted to give an introduction and see what advice is out there and potentially meet others in my area.  I am trying to get going with RE investing and don't quite know where to go or if I am just a little too ambitious at this time.

I recently (last year) got out of the Army and relocated my family of 5 to southern WA to start laying down roots and purchased my second house here, the first is being rented out in AK. I have been looking for a way to grow my portfolio but need some guidance on where I should look and what I should be on the lookout for. The rental in AK is in a great rental market where vacancies are typically less (much less) than 2 weeks but due to having such a short rental history it still counts against our DTI.

The questions I have would be: how long do I typically need to wait before the rent counts towards my income rather than against me as a debt? Is there a good next step that could keep my family located in our current house? We are currently building our savings each month in addition to paying down our car payment to also help our DTI.

Thank you all in advance.

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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    12y

    Welcome to BP @Kevin E. 

    I suggest you start with Ultimate Free Beginners Guide

  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    12y

    Welcome to BP community @Kevin E.  It is a great place to meet new friends and learn about various aspects of real estate and more. Here are a few recommendations for you:

    Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet

    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts

    Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing

    Check out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/

    If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select that person below. He or she will be notified of being tagged so that the conversation will continue.

    Wishing you the best! 

  • Michele FischerPro Member
    Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    Welcome to Bigger Pockets, Kevin!  What area of SW Washington are you in?

    Can't help you with your financing questions - we qualified for a line of credit and three loans within months of each other before we starting being told we'd have to get a track record before we could borrow more.  I assumed it meant long enough to show a tax return and let our credit report settle down, but we didn't end up chasing another loan to find out.

  • Rental Property Investor · Yorba Linda, CA · Member since 2012 · 336 posts · 69 votes
    12y

    @Kevin E. 

    Welcome fellow Bigger Pockets member! This is a great forum and I am sure it will help you learn many facets of the real estate investment world. I purchased my first investment property over 40 years ago and only wish that I had a resource like BP community when I got started! So you are in a good company.

    Some say that your net-worth equals your network, and this is the place to make right connections. You should also find investors locally and network with them face-to-face. Find people close to you using MEET feature. Also, look for investor meetings on Meetup.

    All the best!

  • Rental Property Investor · Cypress, CA · Member since 2014 · 229 posts · 47 votes
    12y

    Welcome to Biggerpockets!

  • Ann Arbor, MI · Member since 2014 · 1k+ posts · 997 votes
    12y

    Hi Kevin, 

    I CAN help you with the financing question.  if it's on your previous years' tax return then we can use 100% of the rental income towards additional income.  

    if you purchased and rented the property out within the past 9 months and thus hasn't shown up on tax returns then we can count up to 75% of the income.  

    i'll drop you a line shortly if you need more info.

    patrick 

  • Investor · Vancouver, WA · Member since 2013 · 315 posts · 63 votes
    12y

    @Kevin E. 

    Ask your preferred lender how they treat the rental income because not all are the same. Some requirements may include up to 2 years of rental income on your W2.  After 2 years they will count 75% of that income. I am curious to hear what your lender says. 

  • Ann Arbor, MI · Member since 2014 · 1k+ posts · 997 votes
    12y

    while every lender is different, I tell you than Fannie Mae guidelines say it's 100% if on tax returns, 75% if not but lease agreements required, and 75% with rental comp appraisal if subject property.  

    I do a TON of loans for investors like you folks.  the biggest issue is actually reserve requirements...

  • WA · Member since 2012 · 40 posts · 16 votes
    12y

    Thank you all for such quick responses, it is great to have found this community online with such a wealth of knowledge. @Patrick Britton that is great info to hear. I briefly spoke to someone from Quicken loans that indicated 2 years but had read elsewhere that's not needed so I appreciate the feedback from someone that can speak from the lending side of things.

    All of these responses have been able to breathe new life into my RE dream. My wife and U know we can handle another place if the right deal presents itself, we were just worried about having to wait 2 more years until we could show that to a bank.

    I have been looking for meetups in the area and will be keeping my eyes open for opportunities. Patrick, I may be in touch if something comes up!

  • Real Estate Agent · Portland, OR · Member since 2014 · 74 posts · 37 votes
    12y

    Kevin I am in a similar situation. My lenders are saying 2 years proven track record to count the majority of qualifications on rental income. with strong W2 and multiple 1099's it will be much sooner. Welcome to the community and I may see you at a meetup

  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    12y

    Hey @Kevin E. welcome to BiggerPockets! You've definitely come to the right place to learn more about investing. If you haven't yet, be sure to check out the The Ultimate Beginner's Guide to Real Estate Investing and The BiggerPockets Podcast. They are both great at learning the fundamentals.

    Also - here's a couple articles you might enjoy:

    The 21 Best Real Estate Investing Books Ever

    How to Rent Your House: The Definitive Step by Step Guide

    How to Be a Landlord: Ten Tips for Success

    Oh - and don't forget to set up your Keyword Alerts!

    See you around the site!

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