All Forum Posts by: David Zheng

@Chris Mason

Hi Chris! thanks for the reponse. On that note, since you are a lender. How long do you have to be on a 5% down property as a owner before you rent it out. 6 months? It just seems like an easy rinse and repeat way to work if you are a flexible investor.

buy used or refurbished from outlets or mass distributors. Cheaper and its for a rental. You can get nice stainless steel sets for the $500-700 range with warranties

When lenders are looking me up for a credit report, will properties under my solely owned LLC show up on my personal statement?

Trying to buy a primary but have a lot of rentals under LLC that could make things complicated

Hey All!

Just a quick question. When applying for a new loan, do mortgage lenders or banks look at the LTV or how much you forked over as a downpayment on your other rentals/primary or do they just care about Monthly payments and total Loan Amount?

Thanks!

Thanks all!

@Kristopher Hanks

@Francis Rusnak

Just market yourself as a cool and responsive landlord and "be their friend" ;)

usually I like to be the assshat that blasts people back into reality when they think they know more than they do

but you definitely are headed in the right direction and are asking the right questions and so I'll offer advice.

you are correct in working up your credit and saving for a downpayment. You will need at least 2 years of solid working history for banks to approve a loan at such a young age. Make sure you buy a property with a PITI close to or less than 45% of your monthly income. There are 3 things lenders generally look at

1. DTI ratio

2. Income History

3. Credit/Credit History

Make sure those are in line. Don't worry if one bank won't approve you. There are times, when I had to call 30+ banks/lenders to get one to work with me.

Balancing University, 2 jobs, and a small rental company on the side is no easy task by any means so try to get an FHA or 5% conventional loan on a duplex or something where you can live in one unit and rent out the others. pick a well taken care of unit so you aren't stressed all the time with service calls. Best to get something by your school so you can rent out to students and save money on crazy boarding costs at the same time.

Hi BP,

so I rent out to tenants at rates 25-30% over what I see advertised in public ads. I'm only able to charge so much because I have a talent in getting high paying tenants even if my property is about as good as the other ones in the area.

I'm worried that once I report taxes or something, my rents will be seen by other investors. Is this a legitimate fear or is there a way to hide it?

I've had deals where the seller countered with the original full asking price and I'd go a little higher on my offer (just a tad) and just go from there.

I've had deals where the seller countered with a slightly lower price and my counter offer would be the exact same as the first.

even if it's been on the market for 2-3 months, has the seller been aggressively dropping the price or has it been 400k for the duration? Once you understand the seller's motives you can revisit your offer strategy.

beautiful!!

Here's my most recent experience

12 months interest only

Rate: - 11% 

Fees Upfront: 2.25 points

No Prepayment Penalty

Loan to Value: 76% LTV, max loan up to 65% of the ARV