All Forum Posts by: Eric Veronica

Most lenders have a minimum loan amount around 50k however you can likely find a smaller local bank or credit union that does not have a minimum loan amount.  I dont have a minimum loan amount however I cannot lend in Oklahoma.  Good luck with the search!

@Dan Mahoney 2 thoughts here...

1.  I think it is all about perspective.  If it was 55 degrees tomorrow in Ohio we would think that it was hot.  If it is 55 degrees in July we would think it was cold.  I know that sounds simple but a lot of coastal investors see these numbers are would kill for these types of deals in their local market.  

2.  This is a bit of a generalization but I think it is accurate. I finance a lot of 2- 4 unit properties in Ohio and I have seen a huge swing in recent years.   Multi units in gentrified, up and coming, middle/upper census tracts are SUPER hot among the millennial crowd.  Lakewood,  Edgewater, Tremont, Ohio City in Cleveland and Grandview, Upper Arlington, Clintonville, and the Villages in Columbus to name a few.  With the cash flow of from the other units they are still living almost for free even if they over pay by 10% - 20%.  This has resulted in a pretty substantial increase in values.  

I would recommend doing them both at the same time.  Kill two birds with one stone.  

Your DTI may not increase as much as you think if your property still cash flows. The new debt will first be deducted from the rental income calculation of each property rather than added as a liability. Decreasing income by $500/month has much lower impact on debt to income ratios than adding a monthly expense of $500.

As far as finding a lender, I would recommend getting a referral from another investor who has had luck with a specific loan officer.  

k-1 statements should be sufficient to use that income as long as it is consistent

Good luck! 

25% down is the standard, conventional, minimum down payment if you are financing 2-4 unit investment property.  You may be able to find a lender that offers alternative financing with less than 25% down however it will not be a Fannie/Freddie loan.  

While not a rule, these alternative financing options could come with higher rates, shorter terms, etc. 

@Maulen Goldstein Sure feel free to call me 

@Russell Grevler The answer to this question can also vary quite a bit by state.  In some states that figure is reasonable and in other state that figure is pretty high. 

@Scott Sambrook Typically the conventional mortgage guidelines will allow you to use the new value after 6 months.  Sounds like you may have found a lender with overlays. 

@Ryan Bonheyo Multiple mortgages will not hurt your credit score as long as you are making the payments on time.  

@Ondrej Brown as the other folks said, I would lean towards the 30 year fixed especially if you are looking at an FHA loan. 2 specific reasons

1. Cash flow.  A 30 year fixed will net more money on a monthly basis when compared to a 15 year fixed

2. Interest rate. Typically the difference between a 30 year fixed and a 15 year fixed FHA loan is very small. About half of the difference when compared to a 30 vs 15 conventional.