All Forum Posts by: Ian Stack
Ian Stack has started 2 posts and replied 6 times.
We just borrowed 100k and each had like10k each reserved in case we went over budget…..which we did by about 5k each time. Hope this helps
In my opinion you are not making enough to make it worth your while. I did 2 flips with a partner in 2019 and these were roughly our numbers; 80k purchase, 25k in repairs/expenses and 10k interest to hard money lender and one sold for 142k and the other one 159k for each one. 13.5k each profit on one and 22k each on the other. I needed the money to purchase rentals and am glad I did it but would not recommend it (too much risk and hassle in hindsight) and this was in a way better 2019 market. I think it would be very hard to make the numbers work today unfortunately
I have been thinking lately that seller financing will really take off in the next 3-5 years and would like input from anyone with ideas on the matter. I can see a situation where a good percentage of the younger buyer pool will have sub-par credit coupled with tighter lending standards Accross the board. I also can’t see a plausible situation where interest rates will rise anytime soon. Seems like a niche that could really work in the Midwest especially where prices are still cheap. Just curious anyone has any thoughts on it
There will be in Detroit in 10 years in my opinion. No appreciation but great cash flow. Probably the best bang for your buck for cash flow
Post: Using projected rent to qualify for additional mortgages

- Posts 6
- Votes 3
Thanks for the response. I understand that only 75% of the rent counts as income but what I'm really trying to get at is using projected rent to buy more rentals this year. I have read in multiple places that fannie mae will allow landlords with a 2 year history of positive cash on tax returns to use 75% projected rent based on fair market rent to offset debt to income. So with the example I gave above of a house with a fair market rent of $1000 and lets say the PITI is $550 a month, wouldn't that be a wash as far as working against my actual debt to income? and if not can anyone explain how fannie mae's 75% projected rent on a new purchase rule works when applying for a conventional mortgage?
Post: Using projected rent to qualify for additional mortgages

- Posts 6
- Votes 3
hey everyone,
So I have a question about using projected rent to purchase rental properties moving forward. Once I file my taxes in a few weeks I will have 2 years of rental income on tax returns which I believe is the minimum amount needed to qualify for this. I own a mix of duplexes and sf homes that total 13 doors and my gross rent minus PITI is roughly 20k in 2019. I have talked to a couple mortgage brokers and all they say is that they need to show positive cash flow and you will be qualified for future mortgages based on this in conjunction with other income I claim. My understanding of the projected rent rule is they generally get a fair market rent assessment and will use 75% of that minus PITI and whatever else is left over would be used against my debt to income........this makes sense. In my market here in metro Detroit a property that rents for $1000 only costs around 70k so PITI would always (or has been the case with every property I have purchased so far) be below $750 a month. In my mind that would make each additional mortgage a wash as far as debt to income goes. Am I missing something here? I have tried to explain this point to the mortgage guys but they say i still need to show enough profit on my schedule e to be able to utilize the 75% rule. Thanks for any response