All Forum Posts by: Scott E.

You say their income is 4x the rent. But what is their debt to income ratio when accounting for rent, credit cards, auto loans, etc?

If their total debt to income ratio is still very low, then that helps their case. And as @Kevin Von Storch said, maybe the sale of their home will wipe out a lot of this credit card debt.

What does the demand look like for this house? If you have been listed a while and this is the first applicant, then you will obviously be more inclined to justify working out a deal with them. If you just put this listing on the market, maybe give it some more time to see if there are any more qualified tenants out there. 

I think you would have had a case with your credit card company if you disputed the charges right away, before you took any of the training or "used" any of the product.

But you said this happened during the pandemic. 3 years ago? Not being mean, but why did you wait so long to look for a way to get your money back?

I'm not an attorney, but I think you've given us a detailed explanation on how to commit mortgage fraud.

Are you saying that you need some help getting into management in Corporate America?

Or do you need some help getting into real estate investing?

Also, thank you for your service.

I don't know of any banks out there who do HELOCs on investment properties anymore. I'm sure they are out there (maybe a local credit union). But not as prevalent as they were a few years ago,

Wow that is awesome and super creative. I'm looking at doing something similar in the next year or so, but didn't realize you could combine products like this. So you were able to buy this deal with basically 100% financing, only paying for closing costs out of pocket?

Awesome! Did you use a SBA loan for financing?

I could rattle off at least a dozen people that I know personally who are in that financial condition or better. There is a lot of money out there in the world. And a lot of those people like to park their money in real estate.

All properties can cash flow. Using leverage is where it gets more challenging.

But if you bought a $200k single family house cash and rented it out for $1,700 per month, you'll have around $1,300 per month in cash flow after paying taxes, insurance, maintenance. 7.8% return on your money.

House hacking is a great way for you to get into real estate. Yes your rent is low now, but if you do a house hack right, you will be living "rent free" AND building equity through appreciation and principal pay down. Not to mention the tax benefits.

You could get into real estate and start building up capital for rentals by wholesaling or flipping houses, but in your situation it's much more practical to "get your feet wet" with a house hack.