All Forum Posts by: Rod Hanks

@Michael Dunn

Hi Michael, my thoughts are still the same. Pay off the debts and use the equity as down payments to buy the rentals using the portfolio lenders.

Welcome to BP!

If I'm reading correctly you can't finance a house because your DTI is too high so you are looking at getting 20-40k in equity from your home to buy a rental property for cash????

If that's the case, I would recommend paying your debts down first before you buy a rental. Because stuff happens in this business and you better have cash or you will be in trouble. Let's say that you get the 40k in equity and buy a rental for cash for 40k...the AC goes out, the water heater goes out, and the roof leaks in the first 2 months.....big trouble!!! 

I would recommend paying the debts down to get your DTI in order, refi to get the equity and use a portion of the equity for the downpayment on a rental in a good area. 40k houses will have 40k problems.

I know this is probably what you didn't want to hear, but if a portfolio lender is telling you your DTI is too high you need to listen.

Good Luck!!!

Both sides recently remodeled. One side is currently rented for $410 and other side is vacant and listed for rent at $425.

Rod Hanks

214-769-5091

I always say "A few" Not sure why but sometimes I'm just uncomfortable sharing my business to people I don''t know very well.

file a new deed with you and your partner as owners. Talk to a real estate attorney or title company.

Find other 8-10 units in the area in the same condition and that will give you an idea per unit value. Also check the tax value. I would also call a local appraiser and ask questions about value for the complex.

Good Luck!

Use the TREC 1-4 family residential contract and put and/or assigns next to your name as the buyer. When you find a buyer use an assignment contract to transfer your rights to the new buyer.

Run don't walk!!!

Lease options in TX should give you troubled thoughts! Don't do it. Owner finance with a wrap is the only legal way to do it.