All Forum Posts by: Craig Jeppesen

Only for the guy that owns the land and is charging rent.

Yes, the bankers math is right and yours is wrong. Really think about your math; how is that 80% ltv.

The value is $370, so the total borrowed against it can be maxed out at $370 x .8 or $296. You already owe$276 so they can loan you an extra $20k $296-$276.

They loan up to 80% total value not 80 % of unused value.

The first step is to calculate the payment amount for the loan to pay off over it’s amortization term. Use a pmt calculator; the math is pretty complex.

Next you calculate the interest: balance times rate divided by 360 times 30.

Finally you calculate the principle by subtracting the interest calculated by the total payment.

Yes this is how it should work, which is why I was asking what your primary residence to your monthly income is because your rentals should not increase your dti if they cash flow. I like to keep the primary 20-28% dti at the most and you should never have any issues. 

@John Patterson

How are you at 43% dti if you on,y have debt on your primary and rentals? Your rentals should be cash flowing which means you have too much house?

@Nikki Closser

I wish small multi families were lowering their prices here in my market. They are selling like hot cakes and way over priced.

Good luck. I hope it worked out for you today. 

It is tough to save money to buy a house. It doesn’t matter what generation you are but the amount of consumer debt someone has compared to their income can definitely affect it. Education is the biggest problem. Kids don’t understand how how interest accrues on student loans and they just assume they will make 6 figures tight out of college. A lot end up in an income repayment plan and their payments don’t even cover the accrued interest of the loan and their balance grows instead of being paid down. A lot of in investors are at fault to because we bought up all the low cost sfh that many 1st time buyers could afford but they are now rental properties instead of owner occupied.

If you are asked to give them money directly it is fraud. Run everything through a legitimate title company and you should be fine. Always follow the smell test. If something doesn’t smell right, it isn’t.

An eviction is to get you to leave the property not to get you to pay. You already have a contract (lease) where you agreed to pay. The judge just gave you some extra time in the place not waive any money you owe. Even if you leave you can be sued for the unpaid rent, or the unpaid rent could be sent to a collection agency and your wages could be garnished. Be an honest person with integrity and uphold your end of the contract which is paying your rent ( all of it).