All Forum Posts by: Drew Clayton

What’s the difference between Quick Books and Quicken?

This is a really good thread. Props to @Ron Brady for starting it, and for all the people who are adding replies in constructive, respectful language, even when they disagree. I love seeing a community that veers more toward valuing learning from each other than dismissing and attacking.

Someone else pointed it out earlier, but it’s good to have some threads that aren’t the typical retreads of questions others have already asked a hundred times over.

@Kyle Tom, so far Linden.

Thanks, @Joe Villeneuve. All very valid, and I certainly am focused on scaling via smart deals. 

With all that said, I'm also just trying to get the hang of analyzing using the calculator, as some of the numbers I use for the various values are ones I've gotten from other people, so I don't know whether I'm off track on the basic math. 

@Joe Villeneuve, true. I'm doing this deal without him as an investor, so I'm using a lower bar than if we were going in together. As someone who only has one other investment property, I'm trying to get base runs, not swing for the fences. I just don't want to strike out.

View report

I'm still a fairly new investor, and am not entirely confident in my use of the calculator. I have a SFH in Columbus, OH under contract for $87k, and the seller is willing to go down a little more to $85k. Rehab costs are estimated by my more-experienced partner to be $35k, but he doesn't like this deal. For his criteria, there may not be enough meat on the bones, but from what I'm seeing, it doesn't look so bad as I'm in the early days of my investing. Does anyone see anything I blatantly put in wrong that could make this a bad deal disguised by my own inexperience?

Also, it's listed as a 3/1 with 1100 sq ft, but actually has a fourth bedroom that just needs a closet, so the ARV could be a bit higher based on comps I'm seeing in the neighborhood.

*This link comes directly from our calculators, based on information input by the member who posted.

How long does someone typically need a full-time W2 job in place to qualify for lending?

Thanks, @Andrew Postell and @Stephanie Medellin. That makes sense. 

Thanks, all for the sanity checks. 

@Bryan Devitt, yeah, I know most lenders prefer a longer history with an employer, but I’ve also heard of some that only want to see the most recent couple of paystubs, which seems unsafe.

@Andrew Postell, that helps. So you’re saying they see the W2 as secondary income because it doesn’t have as long a history as her 1099?

@Remington Lyman, thanks for the lead.

@Chris Wharton, she’s reaching out to you. 

My girlfriend is trying to get a primary residence mortgage loan with a low down payment, and has decent income, however she is running into trouble securing lending because she has both a 1099 job and a W2 one.

The lenders want to take the average of her income for the last two years, but they are telling her they can't use the W2 income from 2020 because she has only been at that job for the last six months. Thus, the lender will only accept the 1099 income (she's been at that job for over two years), which, of course, makes her income look much smaller than it is. Her 2019 taxes are lower than normal, reflecting months she took off for personal reasons. If they were able to use both income sources for 2020, it would make her 2-year average much stronger.

What's the rationale for not accepting the W2? From what I've heard, if you *only* have W2 income, lenders prefer but don't outright require a person to have been at a W2 job for two years; you just have to submit the last two paystubs. 

Anyone know of lenders who work with the low down payment FHA or conventional loans in Ohio that could work with this scenario?

Thanks