Rental Property Investor · Syracuse, NY · Member since 2018 · 17 posts · 3 votes
All Deals are 5 Year terms at 6%
Deal #1 - 1 property -4 unit
$47,500 Purchase Price --15K Down Payment-- owner financed $32,500-- taxes $3,398 per year total rent $2,125 after all expenses take home is 910.71 per month
Deal #2- 5 properties 7 unit
$ 185,000 Purchase Price-- 60K Down Payment-- Owner financed $125,000-- Taxes $13,232-- Total Rent $5,525 after Expenses take home is $1,287.77 per month ( This deal is not complete in the final stages with the lawyers)
How can I use this to help me get a first time home buyer Mortgage? I also work and will be using my wife income, when going for a FHA or conventional loan will the debt to income be a issue even though it is owner Financed? Should I not do the second deal. I feel as if these are good investments.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
6y
You aren't a first time homebuyer, as far as the mortgage industry is concerned. You "have had an ownership interest in residential real estate within the last 3 years." The IRS may consider you a FTHB for tax purposes since you haven't personally lived in any of those properties, but I'll defer to a tax pro on that.
But, it's all good. FHA 3.5% down and Conv 5% down do not require you to be a FTHB.
DTI shouldn't be an issue as long as you're honest about your rental income when you do your taxes, and they are cashflowing.
Rental Property Investor · Syracuse, NY · Member since 2018 · 17 posts · 3 votes
6y
@Chris Mason appreciate you getting back to me.... I spoke to a loan officer and they say the same thing and something about the owner finance can work against me.