All Forum Posts by: Gabe Bouldien

I wasn’t given the option with the prepayment term. Of course I would like a shorter term (or none if possible)

Looking to add a 3rd SFR investment property to my portfolio. I tried to do a conventional 30yr fixed mortgage but was turned down by my normal lender due to the tax write offs over the last year with my other properties. Essentially I didn't make enough to qualify for this loan. I've heard some lenders will take 75% of future rental amount to help qualify. Is this true? I asked him about it and he said he didn't do that.

So I started looking at DSCR loans for this property in TN. The best quote I've gotten back is 7.25% 30yr, closing cost 5k, 25% DP requirement, 5 year Prepayment penalty. Credit is good at around 800. PP 350k, Estimated rent 3k, looking at PITI of $2150/month. Are these loan terms competitive? If not, who do I need to contact?

 I haven’t found any great investor friendly lender. Most of the lenders I’ve had contact with have the 25% DP requirement, high rates, and high closing costs 

I am a rookie RE investor. I currently have 2 SFH properties in my portfolio and I'm trying to grow. After some negotiations I have gotten a house down to 350k, 4/2.5 2500sq ft. Rents go for 2800-3200. I'm confident I could rent it out for 3k. PITI $2200. Needs about 10k in work/upgrades. Planning on 25% down. My biggest hesitation is tying up this much money in a property. What should I do? I was all gung ho about it and now I'm freaking out.

@Brian Eastman, so I have been at my current employer for just 2 years. I was at my previous employer for 8. I rolled over my 401k from my previous employer to the 401k for my new employer. So you are saying that I may have the opportunity to move the money that I brought over into a SDIRA? All while keeping my money that I have put away under my current employer 401k untouched?

Hey BP, 

I work a traditional 9-5 and I have a pretty healthy 401k. I stumbled upon the SDIRA while researching different financial vehicles and now I’m curious. Ideally I would like my 401k to be a pass through account so I get my employer’s match. My dream is once I am paid, the money hits my 401k, gets matched, and then feeds into my SDIRA. Then I can use the SDIRA monies to purchase real estate. Is this process possible? If so, how do I get started?

Hey BP team, I have a SFR rental and their 18 month lease ends in November 2023. They have been exceptional tenants. They currently pay $1750/month, which I would say is on the lower end of average for the area. I was thinking about offering the tenants if they signed another 1 year lease (maybe push another 18 month first?) to keep the rent at $1750/month, but if they wanted to go month to month, increase the rent to $1800/month. What are your thoughts on this? Market rents are more in line with $1800-1850. I look forward to hearing your thoughts.

Hi BP, I am a landlord of just one property in TN. I found a tenant in September 2021 and we signed a one year lease agreement through September 2022. He paid me 6 months rent ($1700/month) in full upon lease signing (so he paid to cover the rent until the end of March 2022). Well a few days ago, 1/3/22, he let me know that he bought a house in the area, and will be moving out at of my rental at the end of January. He said that he expects that I refund him the March rent that he prepaid since he is giving me more than 30 days notice. 

I don't know what to do, and need advice. He broke contract, and I believe TN states that I don't have to pay him back unless I find a new renter to "mitigate damages". I also don't want to piss him off and him punch holes in the walls, etc (cash for keys option for me?). 

Like I said this is my one and only rental. And this is only my second tenant to deal with, so I am still a landlord rookie. 

Any advice is appreciated. 

Hi BP, here is the scoop. I know the current landlord and was just offered a rural rental house on 1.7 acres with a long term tenant in place before he puts it on the market (new windows, new plumbing, new AC). Current tenant is paying $600/month, but rent could easily be 700-800, and the tenant's lease ends in February 2022. He is asking 80k for the house, but the property appraisal should fall between 95-115k. I have the cash in hand to buy outright under my LLC, which would cash flow ~$500 (after taxes, insurance, etc.). Or I could pay cash, and then cash out refi (85% LTV) in a month or two to get my money (and then some) back to buy another property. However, doing it this way, i would be pretty much be breaking even in cash flow with the current lease agreement of $600/month. But the cash out refi would put 4k-20k into my LLC's pocket for another property.

Also, I was just told by a family member that if I purchase this house under my LLC and refinance it, the mortgage would show up on my personal debt to income ratio? I thought this sounded odd. Is my family member correct?

What would you do if you were me?

Thank you in advance!

I am in a similar situation. Luckily I have a bunch of equity in my current primary residence. My plan is to use this equity via a HELOC or cash out refi (haven't decided yet) to put the $ as a down payment for my next primary residence that would better suite our family needs, and rent out my current residence which would cash flow ~$750/month.

I had a friend that recently went through what you are going through too. They got quotes for the addition, and it was actually cheaper for them to move into a bigger house than to add on. Just a thought to consider. 

-Do you have equity currently in your house to use without the addition? 

-I think a vacation home in Mexico could become a nightmare. If rentals are not very profitable in your area, you may want to consider rentals out of state.