All Forum Posts by: Isiah Ferguson

Experience is the best teacher. I think you should go for it. In REI, everyone situation and circumstances vary. There's no right way of doing things. If you feel comfortable and the numbers are right for you, go for it. Also when it come to comps, you can compare each unit individually too what on the market and what sold. If a unit is a 2/1 then compare, that unit too a 2/1 that's on the market or sold etc etc. Goodluck and the main thing is getting started.

Hi Zach,

Can I have additional information on this property?

You can e-mail at [email protected]

"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 ?