All Forum Posts by: Craig Jeppesen

1-taxes

2. Market is down selling low.

3. Future compound interest lost.

4. Have to be affected by the Coronavirus to not pay penalty.

5. Now is not a good time to buy a flip.

It is based on AGI. Your rental income will be included along with all other 1040 income: wages, interest, dividends. Capital gains, schedule c business income, schedule e rental income etc. look at your return for Adjusted Gross Income.

Haha! “Did I mention my Fico is 797”. Dude really. This has nothing to do with your credit score. Some things are a little bigger than your personal situation. Why are you refinancing with a hml if you are a strong borrower?go with a traditional lender. 

a refinance is a new loan. It pays off the old loan and the terms and you get a new loan at current market rates with new term. There are two benefits to refinancing: better terms like a lower interest rate or changing the number or payments, and getting cash out of a property that has a lot of equity to purchase another cash flowing property.

You would have to get a commercial loan for a 5+ unit. Not going to get a 3.5% down. Probably not the best for a house hack.

It sounds like you have a lot of issues; maybe very disorganized or something. The kind of guy that is all over the place.I would focus on getting your current place rented out and start learning to be a good landlord with good systems in place. Real estate is work. You need to put in the work. You are not buying a 4 plex if you are going bankrupt.

Cash equals about 8 months. Also plenty more in taxable mutual fund investments, large heloc loc, lots of equity in my personal residence, 2 vehicles and a boat that can sell or refinance for another 6 months. Reserves are important.

You are paying your mortgage but you have rental income as well. Do not tell a lender someone else is paying your mortgage. What you are telling them is not what you think. If you are applying for a loan you will provide tax returns, lease agreements, and bank statements. All of that will show your rental income.

First of all, the world is in corona virus lockdown; and our countries economy is being hit hard from it. Underwriting is going to be extra conservative right now. You are going to have to qualify without the rental income because tenants are losing their jobs and you can’t count on that income to pay the loan.

If you want the loan you have two options: get your job back or a new job and or sell something like a car or downsize personal residence. Both of these things will improve your dti. You might have to do both.

Well I think it is obvious you have to be able to afford it. What if your tenants all move out or get the laid off like the current virus situation?