All Forum Posts by: Isiah Ferguson

Basically I've posted a late notice on a tenant door. It pretty much stated May 15, 2017 which is today is her deadline and 19th is when the court precedings will begin. I text you this am and reminded her of the late payment and this is her response " Good morning, My available funds on my social security disability account have still not been released, they have identified who the individual was that fraudulently used my debit card and charges have been filed. Still I understand that doesn't solve my rent payment, I'm meeting with my pastor this morning I have explained my situation and I believe my church family is going to help me get my rent paid. Again I apologize for the inconvenience I have caused the company !! I'm really fighting as hard as I can mentally and physically not to be put out of my home !! I'm currently fighting incurable terminal kidney disease stage 3 daily plus diabeties and diabetic nerve damage in both legs , along with upper and lower bulging discs in my back. I'm not asking for pity just for a little understanding that I am really and truly a good tenant....I've just been put in an extenuating circumstance !! I will contact you and make immediate deposit as soon as I get my rent payment !! Sincerely Janice " 

Any suggestions ? She been a day late twice before. Never really no real issues. Overall a decent tenant but this is a business. What should I do ? 

@Cary F. Yeah more than likely ill have to wait the 2 years to have my current cash flow to viewed as income to obtain good rates. I did find a bank that lend based off assets but thier rates are 7-10% depending on  credit.AFter the refi my property won't CF properly, so i can't go with them. 

@Steve Vaughan Yeah somewhat tough but i won't be stop because i want this. With the W2 i do have currently, I'm not making much to take of 80% of my free and clear property. I am renting right now as well, so I'm going to use my W2 to get me a 3/1 for 60k-70k with FHA 1st time homebuyers and get a low rate. Stay in it for a year and then rent it out and now i'm at 2 properties 1 free and clear and the other leveraged and continue that unitl im able to count my CF as income. Idk Just thinking

@Cary F. @Lesley Resnick Okay leverage is a great approach, i get that part. BUT how do you control your Debt to income without a W2 ? I had a W2 job at 1 point and saved a 100k and most banks turned me away to do a 20% downpayment on 100k property because i didn't have the job no more. They told me i need too have 2 year tax returns, i couldnt show that beacuse i only worked 1 year. Instead, to get started i dumped all my cash in 1 property. Now that i have a free and clear property, im looking to refi to get my cash back because i purchased the property at 81% ARV. This was 8 months ago and im running into the same problem still with a property under my belt and with a lil above minimum wage job as well. Speading the 100k around to 4 properties sounds great to be leaverged and to increase my cash flow etc but how do i get around it ?

What about when you first starting out and you have the cash but don't have the W2 anymore and pretty much living on your saving at the moment but have enough cash for a downpayment on a property that cash flows ? @Mike Dymski U will need 2 years proof of rental income to get approve by banks with lower rates correct ?

@Shawn Ackerman I understand that part. We have a great deal at the 2% rule. now the underwriter ask for 2 years W2's. What if you have the downpayment for the property but your W2 doesn't support your debt too income ? doesn't that become and issue for the bank to loan to you ?

I see that there is alot of different pros and cons with dealing with free and clear VS leverage. As far as Leveraging doesn't Debt to income play a factor ? if someone spead 100k around too 4 different properties, don't you need the proper w2/income for loan security or so that the bank feels comfortable loaning you 400k ? @Shawn Ackerman @Joe Villeneuve

I'm interested and also a cash buyer. PM me.

CONGRATS

AWESOME

Congrats. Great work and way to get started. That's pure motivation, thank you.