All Forum Posts by: Brian Morgan

Mark is correct.

The 4506-T is a transcript request form. This is the normal route for Lenders since the form designates a third party where the information can be mailed.

The transcript from the 4506-T and one ordered by the taxpayer through the methods described in my original post are identical. The transcript will be on IRS letter head and contain all line items from the original return only.

It is common for taxpayers to call and get it faxed if they need it immediately for a closing, or for a lender who didn't receive it for whatever reason. I have never known a lender that did not accept it from the taxpayer themselves, but every lender is different and I am sure there are some that might want it ordered through the form and sent directly to them.

Bottom line, if you need a copy and the taxpayer doesn't have it, then the transcript will fill your need. Lenders are also used to seeing the return in the IRS transcript format.

Ibrahim,

No Special form is required if the taxpayer only needs a return transcript. A tax return transcript will show all line items on the original return. If the taxpayer amended, I suggest both a tax return and an account transcript. There are a few different ways that the IRS will provide the transcript.

First, you can request one online. http://www.irs.gov/Individuals/Order-a-Transcript All of the information must exactly match what the IRS has on file in order for the system to accept it. 5-10 days to receive the transcript.

Second, You could call 1-800-908-9946 and order through the automated system. 5-10 days to receive the transcript.

Finally, If you need it in a rush, you can call the customer service line 1-800-829-1040. The IRS will fax the return transcript, but the Taxpayer must be at a secure fax for up to an hour. Usually the transmission does only take a few minutes. Again, the IRS will not fax unless the Taxpayer is physically at the secure fax.

You could fill out the 4506-T Form, but in my opinion, it will take longer to get the info you are looking for.

I have also used a 203K in 2009. Not sure if anything has changed, but as Brandon mentioned there are some hoops to jump through. You would also be working in draws, so may need to front some cash to get the job started.

The biggest problem I had was getting the draw checks from BofA. I had to really put some pressure on them to get the funds out. Make sure your GC knows what he is getting into up front. The process isn't typical, so I would advise to contract with someone who has done one before.

Anyone ever use Key Bank for any of their mortgage/heloc products? I see they offer a 100% ltv Heloc. Not sure that I would take that much, but I haven't seen a 100% product since before 2008. Thoughts?

HI Sean,

I think there may be a few other expenses you want to consider. Is this town water/sewer? Will you be paying for any other utilities?
Most investors I know budget 10% of the net operating income for yearly maintenance of the property. Depending on the age and condition of the property this may be overkill or not enough.

Finally, how about vacancy? How will you be impacted if one unit is vacant for 30 days. How about 60 days? What if both units go down?

To me, the numbers look a little too thin for it to be profitable. Can it be the right fit for you.... possibly, but Proceed with caution.

Not nearly enough information to go on here. However, based solely on your basic numbers of Gross rent and Monthly payment, this won't be profitable.

If you want to really price this out. Forget about the 50% rule and use actual vacancy and expense numbers.

It is my understanding that the owner Occupant on and FHA Multi-Family loan must move in to one of the units within 60 days of signing the note, then live there for at least a year.

I'm not 100% on that info though, perhaps someone else can confirm.

What tricks are you using to remove the MIP? As I understand it, there is no way to appraise out of the MIP. You can only wait until you have 60 months of payments and the loan hits 78% LTV from the original balance?

Unless you are saying you will refi to conventional or other products?

Unless the tenant is self employed, claiming a home office, then it does get reported.

All this doesn't make a difference. It is the taxpayers responsibility to report the rental income. Each Taxpayer signs the jurat at the bottom of the return. If you knowingly under report, you are filing a fraudulent return.

As for safe guards, two have already been mentioned... Exam and Underreporter. There are plenty more tools in the IRS' arsenal.

Can you document the duplex income and expenses? You don't have any direct control over what other taxpayers are reporting.

Your original post makes it seem like you are trying to under report your rental income. The IRS does have a department that specifically goes after under reports.