All Forum Posts by: Kevin Auyong

sounds like this is your first foray into investment property. I would do the local house hack. Managing over long distance adds a whole new layer of complexity and for a newby could be a nightmare. The househack will allow you to learn and gain experience in a market you know better.

Isn't the turnover rate going to eat heavily into that 25% in a junkier area. Have you actually done this on a few properties or is this the first and you are  projecting 25%?

I assume you are paying all cash?

Shawn there is a real estate meetup once a month you should check out. I think its the 3rd tues of each month. Lots of BP people and no one selling stuff

@Michaela G wow what an experience. But it is good you are trying out all the different options. I'm still going to have meet up someday when you have spare time.

A lender they told me that on a cash out refinance on a rental house I own in my name, that the homes owned by my Self Directed IRA, the expenses like property taxes would count against me personally in calculating my DTI. However they would not count any of the income the homes in the IRA collected.

Of course this really slams my personal DTI down.

Is this the normal practice? Logic says the IRAs are seperate from me personally. Logic says if they did that they should factor in the income they earn against expenses.

Seems like there should be more consistency in a business that is so regulated.I almost wonder if they have a dartboard with canned answers on them. Full disclosure it was a bank and not a mortgage broker.

Oh one more question. I'm mostly retired on my rental income. If my tax return shows $120K of income from my rentals with depreciation not included, will a lender give me full credit for the $120K?

Okay, that makes sense. Thanks. The last lender I went with couldn't give me an answer that made sense or conflicted with other things they told me.

so is rent a liability? If I don't rent a house anymore do I eliminate the $1700 a month rent liability and the house purchase replaces it with a $1300 liability?

The reason I asked is I just did a cash out  refinance on  a rental house I own and the lender wanted a copy of the lease agreement as well as verification based on bank statements that I paid rent on the house I live in.

I currently pay $1700 a month for rent.

Based on buying a house my mortgage, taxes, and insurance would come out to about $1300 a month.

When looking at my DTI for qualifying for a mortgage, does the lower cost for housing factor in at all since my housing cost drops $400 a month?