All Forum Posts by: Douglas T.

I'm actually more worried about my brother and sister being saddled with the debt my Mom co-signed if something were to happen to me after my Mom passes.  I just don't want them to be in any way tied to this debt if my Mom were to co-sign.  Of course I've asked the mortgage broker, but he just tells me what he thinks I want to hear... "Oh, it will be no problem at all".

I have had to ask him 4 times what amount he used for a downpayment.  I have asked him multiple times to see the figures he used in his calculations.  Finally he sent me a "rental worksheet".  I don't see what the downpayment is or what the monthly payment is on there.  It looks like nothing more than the calculations he used for my rental properties.

He made sure to tell me that he was trying to help me in between clients in his office when he emailed me to tell me he used a 20% downpayment.  I asked why he told me last time I would need 25%.  His answer:  "Because this was a higher purchase price and that unit owner had higher property taxes which were hurting your qualify ratio."

Why wouldn't he have just done the same thing and used 25% down if my ratio needed help? I have no clue what difference 20% vs 25% down would make on my DTI ratio, but I'd really like to know. I'd like to know how much it would change if I put 30% down. I'm at 63% and he said he needs me under 50%.

He seems to get more and more agitated as I ask more and more questions.  My gut feeling is something isn't right.  The realtor suggested I use Quicken Loans.

My mortgage broker preapproved me last March for a loan amount of $86,250. Last week, I asked him about a cheaper unit where the loan amount would be $81,750. Since nothing has really changed since my preapproval last March, I thought I'd be good to go. My income is the same if not slightly higher and the only debt I have the mortgage on a rental condo (which is currently rented out). My credit score is higher than last year (don't know if that matters in this case). The units are identical in same bldg, so taxes and HOA are exactly the same. I also have reserve funds in savings for the rental.

This time though, he says my DTI is too high - 63% and he needs it under 50%. When we did the preapproval last March, I hadn't yet found a renter for my rental unit. The mortgage broker plugged in $1200/mo in rent. I rented the unit 3 months later for $1150/mo. He says my DTI is too high because it was only rented for 6 months in 2017. He says before he calculated it being rented for 9 months of the year... this is where I start to have problems understanding this.

I don't understand how he preapproved me last year when I didn't yet have any rental income history from my rental unit.  And, now.. when I have rental income, he can't.  Before I did this, I was under the impression I'd need a couple of years rental income before I could count it as income for another mortgage.  This mortgage broker assured me he could use the rental income as soon as I got a lease on the place.

This guy has always been really nice in the past, but he sent me a very short email on Friday night asking if a parent could co-sign (I'm a 45 year old man). He didn't give me any other options and didn't explain any of it. Can I make a larger downpayment to get to the target DTI? Can I pay down the rental unit's mortgage a bit to get to the target DTI?

I do have an 80 year old Mom who would co-sign, but of course I want that to be an absolute last resort.  I don't want my Mom's name on my property if at all possible.  My main concern is that she probably won't be around in 5-10yrs.  So, what happens when she passes away and my brother, sister, and I are trying to deal with her finances?  Are my brother and sister then going to find themselves in the middle of this?  I've been stressing out all weekend over this.  I have the perfect unit on the market right now that I want to put an offer on and the price is a steal, so it won't last long.

I would really appreciate any help in understanding this situation..thx

I recently received an owner's statement from my property mgmt co. that had an $83 charge for replacing a toilet sloan valve.  First of all... they're supposed to notify me before any repairs are done - they didn't.  Secondly, they're supposed to give me the option of using my handymen or theirs - which I never got to make that choice.  I recently had a list of repairs completed along with a remodel before the tenant moved in last month.  Replacing that sloan valve was on that list.  I am out of state and a rep. from the property mgmt co. checked and approved that all of the work had been done.    If they'd notified me before, I could have just called my guys back out to do the work they apparently didn't do.  Now, I'm stuck with a charge from their handyman for a repair I already paid for and a promise that it won't happen again.  Any advice?

I've received an application for my Uptown rental from a Canadian citizen.  How do you guys check credit for a person from Canada?

 Thanks.  I'm going to remove the requirement for last month's rent and up the move-in fee to 1/2 month's rent.  We'll see how that works.  Thanks for the suggestion!

Every apartment I've ever rented has required me to pay 1st mo. rent, last mo. rent, and a security deposit equal to the mo. rent.... so 3 mo. worth of rent payments upfront. I'm now using a property manager to find a renter for my Chicago condo. He's telling me that it's unusual to collect last mo. rent upfront and asking if I'd take that requirement away. Several property managers in Chicago all explained that Illinois laws favor tenants in cases of landlords keeping security deposits for damage done to the unit. Landlords rarely, if ever, win and get to keep part of the deposit. Because of this, landlords in Chicago are moving toward non-refundable move-in fees. I'm charging a $350 non-refundable move-in fee and my HOA charges a non-refundable $250 move-in fee. So, I'm not even asking for 3 total mo. in rent up front. I'm only asking for 2.5, in fact. Am I missing something here? He's asking me to take away my move- fee... which leaves me with nothing if damage is done to the unit. Or he's asking that I not ask for last month's rent... which also leaves me unprotected at all if this tenant decides to move out in the middle of the night. Any thoughts on this?

Every apartment I've ever rented has required me to pay 1st mo. rent, last mo. rent, and a security deposit equal to the mo. rent.... so 3 mo. worth of rent payments upfront. I'm now using a property manager to find a renter for my Chicago condo. He's telling me that it's unusual to collect last mo. rent upfront and asking if I'd take that requirement away. Several property managers in Chicago all explained that Illinois laws favor tenants in cases of landlords keeping security deposits for damage done to the unit. Landlords rarely, if ever, win and get to keep part of the deposit. Because of this, landlords in Chicago are moving toward non-refundable move-in fees. I'm charging a $350 non-refundable move-in fee and my HOA charges a non-refundable $250 move-in fee. So, I'm not even asking for 3 total mo. in rent up front. I'm only asking for 2.5, in fact. Am I missing something here? He's asking me to take away my move- fee... which leaves me with nothing if damage is done to the unit. Or he's asking that I not ask for last month's rent... which also leaves me unprotected at all if this tenant decides to move out in the middle of the night. Any thoughts on this?

I got a quote for landlord insurance and I wanted to get opinions here.  I'm converting my Chicago condo into rental property.  There is no current policy or insurance company to call or bundle services with.  This is a 1br condo that is 700 sq ft.  They said I could save about $50 by lowering these two things I've listed below.  Do you guys see anything else you'd change?  Thanks... I've never done this before.  In case you can't read the premium total, it's $276/yr.

Building Property Coverage A $70,000 - is this too much?  Another company said I should only need $45k

Liability $1,000,000 - is this too much?  The other company said I'd only need $500,000

I posted this in the contractors forum, but wanted to get some landlords' advice on this too.  I need to talk to and hire a contractor as I'm preparing to convert my condo in Chicago into a rental. Most of the things on my list are small wear and tear items that have come up from living in the unit for 11years. The biggest job is putting in a cheap ceramic tile kitchen floor, bolting lower kitchen cabinets to the walls, maybe adding 1 lower kitchen cabinet and then new durable but inexpensive countertops.  It's a small 100sqft galley kitchen.  However, I've never talked to a contractor before. I know next to nothing about construction and repair work. I don't know if there is a set price or hourly rate. I don't know what happens if they go over the estimate or time period. I feel like there are a million questions that I don't even know to ask, and I don't want to appear unprepared when I do this. Can anyone direct me to a resource where I can get a feeling of how the meeting will go with the contractor, questions I should ask, things I should know, and things to watch out for. I won't be here when the work is actually being done, and I won't be able to see it in person when it's done.  I'll already be moved out of state.  The property mgr I hire will oversee the work and do a walk-thru when it's done.  They've said I can have a friend come double check the work.  I'd really appreciate any help you guys could offer. Thanks!