All Forum Posts by: Guifre Mora

 Can you elaborate when you say "my DSCR is 2.2" ...are you referring to DTI?

Paul, what is your concern? There is an underlying question here but what is it? 

are you asking if it's a good rate, points to much to pay, does it cash flow, DSCR, is there better out there ...?

• What are the Closing Costs?
  

Excellent question! But not easy to explain without a tutorial.

"Does that change the cash on cash return?"
NO for the effects of analyzing a single property & YES when you are analyzing multiple assets. 

Because each property will perform differently based on yearly expenses, debt service, rent increase, and appreciation through its lifetime you would need different financial modeling. In the calculator you used you can see this as the 
"Analysis Over Time" of a single asset. You see the behavior over time. If you were to use multiple asset financial modeling it would be tracking the bottom line of your portfolio as you refinance and reinvest time over time and purchase more assets. 

So your calculations are correct 3.63% ROI for that specific property. Now if your downpayment is costing you 5.5% you would be underwater at a glance correct? but the first property also cash flows has a history of cash flow and initial investment ROI. So your portfolio could just be an average of both ROI for simplicity.

While there are many ways to measure investment performance, few metrics are more popular and meaningful than the return on investment (ROI) and internal rate of return (IRR). Across all types of investments, ROI is more common than IRR largely because IRR is more confusing and difficult to calculate.

Good for you congratulations, lots of information that is irrelevant here but... potentially can afford a home little over 800K, now the questions will you qualify for a loan ... hypothetically your wife might not go back to work.

20% down great, reserves for closing costs, appraisals, moving costs, new furniture, and any fixes needed the wife would like -(pink or blue nursery)?

Annual Income $159,000. This would be 2020 income.

Annual Income in 2019?

Annual Income in 2018?

To be approved, you need the income that is reliable, stable and likely to continue for at least three years. Standard mortgage applications need a two-year work history listed. If you've been at your job or within the industry that long, no further questions are needed. If you've got less time at your position than two years, your history comes into play.

10% bonus ... paid when? end of year monthly quarterly, how much of this bonus have you received this year?

15K special bonus ... paid when? end of year monthly quarterly, how much of this bonus have you received this year?

Monthly expenses: 

• Monthly credit card payments (you can use the minimum payment when calculating your DTI ratio)
• Monthly car payment how much? ...
  
• Monthly student loan payments (If this is your wife make sure it's not in your FICO report)
• Monthly personal loan payments
• Monthly debt consolidation loan payments

Make sure your credit report is clean and no old accounts appear as active. Do not remove them before talking to your Mortgage broker, by removing any info you might lower your FICO. 

Congrats and good luck

 That's Great whats your Cash flow and CCROI?

 Whats the question?

Some lenders take 2nd position. Some do JV at 50/50 split.

That's why there are fix and flip loans most Hard money is for that purpose. they lend you 70/75 of the purchase price and 100% of the rehab money and the cut at 65-75% of the ARV. You also need to consider closing costs not just down payment but holding costs and reserves.

I agree will everyone who answered before me. IMO, Closing costs are bellow average fo the USA. You are at 1.4%. Run your numbers at least to 3%. It will avoid you huge headaches at the closing. 

That’s a interesting way to se it, never thought of it. If the closing costs are financed then that would be ways to compute it. But your initial investment will be recouped at a certain point diving it by your cash flow year to year. It won’t take you 30’years.

 Loans are made with the lender's own money or sold on a secondary market, for example, your 401K or insurance will buy these loans. Lenders will keep loans on their balance sheets for various reasons one of them is a portfolio loan. Most Portfolio loans need to have 5+ properties on the loan. Rates are not the best but it has its benefits to have 1 mortgage payment a month.