All Forum Posts by: Cody Godfrey

@Steve Morris exactly why Im so anxious about it.. Its a 95% LTV loan that they're holding in house. Its an owner occupied loan. The numbers on the house are great thats not my concern. My concern is any odd balls that would throw my DTI out of whack.

@Randall Alan Randy, I appreciate your input! The originator has been in the business for 15+ years so I'd hope they haven't missed anything. Fortunately I don't have to worry about the loan being sold on the market because they're holding it in house.

One major concern is my wife making a job change during the transaction.. I don't want the underwriter to deny the loan based on that but the originator said it would be fine. Crossing my fingers!!

Thanks again.

Hey Everyone!

I have a 2 unit I'm currently under contract on. The loan is now in the underwriting stage and my nerves are all over the place. I'm hoping to get some reassurance or input regarding the likelihood of my deal getting approved by an underwriter. The property should produce north of $1,000 cash flow after I move out of it.

Purchase price is $299,100 with 3% seller assistance. I'm using a local portfolio lender who is offering 5% down and 3.5% interest but I have to use a 7/1 ARM loan. The loan originator seems to think everything will be okay but, I'm still extremely stressed out. In your experience what percentage of deals get through under writing?

This is my 3rd property and I'll be owner occupying it. My DTI ratio for my pre approval was 43% and I believe they want it to be under 45%. Our credit scores are in the mid 700's so I don't see that being an issue.

Any input is greatly appreciated!!

@Tom S. Hey Tom! Greatly appreciate your thorough input. I’ll rerun my numbers and take that into consideration!

Thanks again.

@Steven Madoff I’m actually in the process of getting my license myself. Just need to pass the state exam lol.

We’re actually not in a rural area I’d say more suburbs. Public water is right in front of the property there’s just no need to tap in yet.

@Steven Madoff assumed there would be some issues.. there are separate water lines but only one well.

Is there a certain size the lots would need to be each?

I have a property with 2 dwellings in 1 deed. Both properties use the same well.

How easy would it be to divide the property into 2 deeds? Also, how would I go about doing so?

Looking to sell off the one.

Thanks!!

@Blaine Meehan Thanks for your input Blaine! I thought about using a cash advance from my credit card.. I use credit cards for all purchases for cash back purposes and pay the balance in full every month typically. My credit limit on the main one I use is $7,000 so that might not be enough but I suppose it would be worth a shot! Honestly dont know how it works getting a cash advance I've never tried to do so.

Yes about my deal. So the purchase price is $315,000 with 3% seller assistance with closing costs. I ran my numbers fairly conservatively. The purchase price is high for a 2 unit in my area but ts easily one of the nicest around. Its worth the price numbers wise. 

We have a nearby town home complex that rents out pretty much the same identical units for $1,750 a month.. I ran my numbers off $1,600 rent for each side and $125 for a separate garage that I'd rent to someone for storage purposes. Total income per month worst case scenario I think is $3,325

The place is totally turn key and has been recently renovated. Needs zero work. A new roof was just installed 2 years ago, new water heaters, updated HVAC in both units.. PITI is estimated at $2,100. Tenants pay all utilities (W/S/T/E/G) I'm also being conservative as saying I'll put $100 aside a month for maintenance reserves even though I really dont see myself using that because again, this is as turn key as it gets!

$3,325 - $2,100 - $100 - $116 (3.5% vacancy) = $1009 cash flow per month on 2 units lol. Again thats worst case scenario! I do all of my own property management as I'm a full time property manager and dont trust others with my properties yet. I realize there will be an added expense for that in the future potentially. I plan on making the tenants mow their own yard and do their own snow removal.

Thoughts?

Again, I dont want to miss out on this thing.. Its a good one.

@Mike Miller @Tom S. Thanks for the input guys. Great thought but I’m only 25 and my 401k barely has anything in it unfortunately so that’s kind of out of the question.. or I’d totally take advantage of that.

@Doug Pintarch thanks for the input Doug! I don’t have many wealthy friends lol but never hurts to ask!

Appreciate the input