All Forum Posts by: John Delia

Welcome to the community, Dino!  I'm in the Metro Detroit market and am happy to help out in any way if you have questions on locations, #'s, etc.  You're coming from a great start having managed properties previously.  Best of luck!

Nicely done! 

Easy solution -  Here is the link to Fannie Mae's guidelines:

https://www.fanniemae.com/content/guide/sel033115.pdf

You'll want to seach the Part B section.

I'm looking at making my next purchase as a primary in the Indy area.  I have a couple coworkers to rent out bedrooms to until I turn it into a rental 12-18 months later.  Any suggestions on areas in Indy, @Rusty Scott?  I've been looking around Broad Ripple as that seems to be an area highly sought after by young professionals and has a strong demand for rentals.  I've only been here since Sept so I'm all ears!

Hey Ron,

Thanks for the input- that's what I'm thinking as well.  I've been focusing on properties in the 80k-90k range.

Hey all,

I'm sure this has been discussed but I'm curious how other investors are handling today's market.  While the interest rates remain very low and are highly beneficial for long-term rentals, property values have been increased and there has been greater discussion of an upcoming bubble.  Are other investors continuing to buy rentals now at a higher price with the lower rates or are you looking to begin purchasing once the property values come back down and more than likely look at financing at higher rates?

I currently own 2 rentals and am in a great position to purchase an additional 4-5 financed rentals in '15.  I'd like to take advantage of the low rates but don't want to find myself upside on my mortgages a couple years from now.  I plan on holding onto these properties for 5-7 years until I can look at a 1031 option so I'm not sure if I should be concerned about the lack of equity if the property values depreciate in the meantime.

Any feedback is greatly appreciated!

Thanks.

The lender will use the lower of your median credit score versus your soon to be wife's median credit score. As long as her score is higher than yours, it won't hurt having her on the mortgage (assuming she has no collections, BK's, foreclosures, etc on her credit). You'll also want to know if you'll need her income or not to qualify for the mortgage. If you plan to mortgage additional properties then you'll also want to consider that many lenders will limit the amount of mortgages in each of your names.

The Upfront Mortgage Insurance Premium for FHA is rolled on top of the LTV req and won't need to be out of pocket. Some lenders will allow you to use a 5% gift (from relative) for the 5% required for the DP on conventional. You can also look at doing a Lender Paid Mortgage Insurance option to remove the PMI.

I'm not an expert on condo guidelines but you may run into issues if only 20% are owner occupied.

A cash out transaction is a lump sum of money that you would receive. The interest rate will vary depending on which day you lock in. Based on an investment property and your mortgage size, you should be in the 5.125%-5.5% range on a 30 year fixed.

One thing to consider on the FHA mortgage is the monthly MIP payment which isn't cheap on an approx $480,000 mortgage. The 25% down on the conventional would remove the necessary PMI (20% DP would work if you found a letter willing to do this on a 4 unit). Also be sure that the FHA approves the county for a higher limit