All Forum Posts by: Andrew S.

 What do you mean by "off the books"?  Is that under the IRS radar or is it simply self-employment income?  In the latter case, supply income tax returns to lender and you'll be fine.  

In the former case where you essentially show zero verifiable income, you'll have a very, very difficult time getting a loan of any kind (other than maybe a private lender).  And as far as I'm concerned that's the way it should be - you would be doing something illegal and are mooching off the rest of us taxpayers.

I agree, @Larry Turowski 

 It's a innate human trait it seems.  Takes a lot of work to overcome it.  

I should know, as I rode some Worldcom stock all the way down to zero, back in the day.....  no way an outfit like MCI/Worldcom could ever go broke  :-)

@Neil Check out Delayed Financing Exemption.  You pay cash, make improvements, then finance (must be WITHIN 6 months of closing) based on 70% of new appraisal up to 100% of original purchase price plus original closing cost.

@Neil P. undefined

I agree with @Michael Seeker 

These are items he accepted when he viewed the property.  Next thing he will bill you for the inspection....  I'd offer to let him out of the lease if he doesn't like it.  This guy sounds like the prototype of a trouble tenant.

@Brie Schmidt A cash offer (no financing condition) can be very powerful in a competitive market.  It also typically allows you to close significantly faster - sellers tend to like that.

I use my HELOC often for this purpose

Edit: you can get around seasoning requirements by using delayed financing exemption

@Jerry Poon 

There are some folks here on BP who have figured out how to make condos work (hopefully they'll chime in), but in my experience, the HOA fees do usually zap any cash-flow you might have. Of course, you will try build it into the rent as much as you can but at the end of the day, the market rent is what it is. You won't be able to charge market rent and then ask the tenant to cover an additional $400 bucks in HOA fees. From the tenant's point of view, it's the total rent that matters - he won't care about your HOA cost.

Just offering a personal opinion here and it seems very much counter to what the majority of responders think:

Personally, I NEVER open or even look at an unsealed letter - to me it just advertises itself as "junk" and goes straight into the trash.  I'm MUCH more likely to look at a postcard than an unsealed letter.

Something to think about with Section8 is that it will also mean inspections.  Your property may, or may not pass that inspection (I have heard may stories where section 8 inspections were VERY stringent, to the point of being unreasonable).  This is another potential risk to take into account.  

@Chris C. 

  Not sure exactly what you are asking but there is not a way "around" the requirement for owner-occupancy.  You either live in one of the units (and qualify for the low downpayment) or you don't (and put down closer to 20%).  

@Mark Malevskis 

 25% down is probably a good guess for a 4-plex although that will depend on the specific bank and you may find one that goes lower.  Also, if you owner-occupy, then the terms will be more favorable.

What Joel refers to is the breakpoint between "residential" and "commercial" loans.  A 4-plex is considered residential for lending purposes, but anything larger (e.g your 6-plex) is considered commercial.  Commercial terms are generally less favorable.  Larger downpayment, higher interest rates and shorter terms (no commercial 30-year loans - typically 5-10y is longest).