All Forum Posts by: Isiah Ferguson

"the interest rate is completely irrelevant. If its 4% or 18% it doesnt matter."

I somewhat came to the conclusion that I can take the HML route to refi my property and scale up that way. As far as my understanding HML are usually high at 8%-12% for 30 year terms. I ran all the numbers with the BP rental calculator at 8% w/ 30 years and i still CF $300+ after all expenses as long as i continue to manage. I think most people would say 8% is on the high side compared to the typical conventional @ 4%. My question, Is there any HML out there with better terms ? Should i scale using HML or should i sacrifice getting the high paying job to offset my DTI to be able to get lending from a traditional bank ? I always thought stay away from higher rates.

@Christopher Phillips Okay, I see. Thanks I appreciate that.

@Christopher Phillips 

Thanks for the advice. 

Also, I no longer have the job security, that lender love to see. Right now, I have a property and cash reserves. Would a local lender even consider lending to me with the JOB requirement, when it comes to long term conventional lending ? 

Hey BP,

I'm looking to refi but my DTI is very low. I do not have the same job I had before. I have a free and clear duplex and cash reserves. I've been trying to figure things out and I don't want to have to search for a high paying job to offset my DTI , i don't really want to work. I somewhat came to the conclusion that I can take the HML route to refi my property and scale up that way. As far as my understanding HML are usually high at 8%-12% for 30 year terms. I ran all the numbers with the BP rental calculator at 8% w/ 30 years and i still CF 300+ after all expenses as long as i continue to manage. I think most people would say 8% is on the high side compared to the typical conventional @ 4%. my question, Is there any HML out there with better terms ? Should i scale using HML or should i sacrifice getting the high paying job ? I always thought stay away from higher rates.

I RECENTLY WENT THROUGH A SIMILAR SITUATION AS A FIRST TIME LANDLORD MYSELF. I SAY GIVE 1 MORE DAY, IT WON'T HURT BECAUSE EITHER WAY THE EVICTION IS STILL A PROCESS. IF YOU START THE PROCESS RIGHT AWAY, THERE IS A SMALL FEE TO GET THINGS GOING WITH THE COURTS. SEE IF THE TENANT PAYS AND IF YOU DECIDE TO KEEP THEM, AT THIS POINT YOU DODGE THE COURT FEE.  DOESN'T SEEM LIKE A BAD TENANT ACCORDING TO YOUR DESCRIPTION BECAUSE I HEARD ALOT WORST. SEEM LIKE THE TENANT AT A ROUGH POINT. ALWAYS BE A BUSINESS BUT ALSO SOMETIMES TREAT PEOPLE HOW YOU WANT TO BE TREATED. JUST MY $0.02. GOODLUCK  

ALL DEPENDS ON YOUR PERSONAL GOALS. YOU CAN EITHER DO BUY AND HOLD RENTALS, FIX AND FLIP, ETC

@Young C. Question ! With this deal did the bank take into consideration your DTI or your job ? What were the requirements you had to meet to get approve for funding ?

IDK BUT IS IT EVER GOOD TO OWN FREE AND CLEAR PROPERTIES, WHEN YOU CAN LEVERAGE TO SCALE UP AND INCREASE YOUR CASH ON CASH RETURN ? 

You have to know the area, that you invest in. Some of these "bad areas" or whatever aren't so bad. You have to maneuver through and understand the difference between the potential bad tenant and the hard working dad and mom who trying to make ends meet too take care of their family. There are good people who do not have the qualifications to get a higher paying job and sometimes it will compromise your current living situation. There can be a terrible complex with "bad tenants" but around the corner in the same neighborhood their can be pretty good units with great people who is striving to do the best they can to survive.

 ANY great ideas for Heat. The winter time is approaching.