All Forum Posts by: Dave S.

Hi all. I have a question about a future problem I see with DTI ratio. As one's portfolio grows so does income obviously which is a great thing. Just wondering how people work around how banks look at rental income taking a 75% haircut. For example, if you have $200,000 a year in gross rents and a bank only allows 75% of that then you are penalized on $50,000 a year. Depending on one's other sources of income that can be a substantial hurdle. If anyone has thoughts on a different solution aside from earning another $50,000 a year in income to continue to purchase rental properties and keeping that ratio in line I would love to hear them! Thanks in advance. Dave

Hi, Need referral for interior painter in Seattle area. Quick job, turning all units in 4 plex. thanks! Dave

Thank you for the responses, appreciate the feedback. Nathan, I could use a referral if you have one.

My wife and I are taking over the property management our rental properties from the existing property manager. Our question is about setting up bank accounts. We live in WA state and our personal banker said that if we own our properties in our name and not a business it is not necessary to setup business accounts. We setup two accounts for each property jointly in our names, one account for the security deposit and one account for the operating account. We nicknamed each account with the corresponding property address. After reading more of the forums I stumbled across many people setting up DBA's. Does anyone see an issue with the way we have things setup? I don't want to overcomplicate things. We do have liability coverage already. If we did setup DBA's is it more common to use our SSN's or going an additional step to setup EIN's.

Hi Linda, I did get some traction with Wells Fargo...Looks like folks are having luck with Union Bank as well but I haven't contacted them yet...

Thanks Joe, congrats! I will add Union Bank to my list to call. Appreciate the feedback.

Thanks all!  Yeah I just called a small local bank and got encouraging information! That’s the ticket I think just keep calling banks....Only takes one!

I just called 6 banks in WA state to try and get a HELOC on a rental property. The purpose of the HELOC would be used for a partial down payment on another investment property. All 6 said if the intended use is to purchase more real estate they wont lend. Even if the property was owned free and clear they would not lend one dollar against it. I did find a credit union in Oregon that would do it but they don't lend in WA state. If anyone has any ideas that would be great! Thank you.

Thank you Kevin! I really appreciate the guidance. I will give that some thought and look into your ideas.

I have a rental property with over 100k of equity. I want to access that money to buy another rental for a long term hold. I also want to keep the current rental that has the equity long term and not sell it. What is the most traditional strategy to for this? I would do a cash out refinance but the home was formerly a primary residence and the rate is fixed at a much lower rate then what I would get if I did a refi as a non owner occupied loan. I know it seems like a simple question but the only option I see is to do a HELOC or Home equity loan. I guess the home equity loan would make the most sense to fix the rate. Even though I might be paying 5% on the loan, the goal would be to control a larger new asset and experience the long term potential appreciation benefits of the new property as well. I would like to continue this process to continue acquiring more rentals long term, just want guidance for a blueprint for repeatable long term hold strategy to pull out equity. Thank you!