All Forum Posts by: Jason Dale

The problem is, my 401k has just enough balance to be considered reserves for both rental units. 

I really don't want a partner, at least for this deal since I'm so close. 

As for the business loan, I only got my LLC finally created about a week or two ago. My bank only offered a line of credit, for around $25k, for new businesses. I may have to find another bank

Would a bridge loan be good for something like this? 

Thanks!

Hello BP! I have a problem I can't figure out. I need about $12k to reduce my debt to income ratio. 

I have a condo for my first rental property and a unit 2 doors down just went on the market as a foreclosure for $85k. I bought mine in 2012, also foreclosure, for $125k. I talked to my bank and they are willing to finance it except I have too high of a debt to income ratio. I have $15k for downpayment/closing costs and I can use my 401k as reserves. My current unit rents for $1500/month. This unit will cashflow about $500 a month. I have $12k left on a loan for a separate side business I run and paying that off would get me to the correct debt to income I would need. Buying the unit at this price I would instantly have at least 20-40k equity. My current condo was a first time home buyer deal so I technically have 2 mortgages on it, so I can't really access the equity (refi would have significantly higher interest rates). 

I only have one family member who has enough money to loan out this kind of money, and he already said no. 

I have reached out to several other lenders I've found advertised here and they all want either way more up front (one wanted $40k!) or the price, after down payment, was just too low for them to finance. 

So I'm a bit stuck. I could use all my savings and wipe out a lot of my debt, but then I have $0 fallback or downpayment money. I also live paycheck to paycheck with extremely tight margins so "saving more" is not an option. 

Any ideas?

Also, the condo needs all the appliances. I figured an equity loan after closing would be able to pay for that stuff. Minimal reno needed. 

Thanks!

Jason

Thanks everyone, the information provided is very helpful. Good point on having one less person responsible for payment. I'll see if they both really want to have her removed and I'll try to keep her on the lease. I told him he can replace the locks and just give me a key. I think the dog was hers, that was a big source of the problem. 

I have a realtor based out of Roxbury who has helped me in New Milford a lot. She is great but I don't think she is on BP. Let me know if you are still looking for someone and I'll give you her contact info. 

They have only been there since October and have only paid by the due date once. There was also neighbor complaints (this is a condo) about their dog barking (and maybe yelling?) which has been resolved, and then there was an issue with dog waste which has also been resolved. I believe he was carrying the weight of the rent anyway, she is a waitress. He wants to remain on the lease. 

This is my first rental property, I'm hoping future tenants aren't this frustrating. They screened well. 

Hi all, 

My tenants were a couple when they signed the lease. Now they are not. The bf is planning on staying, and would like the gf off the lease. I have no problem with this (although they have not been the greatest tenants). What, specifically, should I do? Re-create the lease and have him sign the new one? Are there any legal issues with removing someone from a lease, or drafting a whole new lease before the end of the previous lease? I assume the gf will want to be off the lease, but can I just go ahead and do that? I just don't want anything to come back and bite me just because I don't have the experience yet. 

He also wants to change the locks because she did not return the key. I have no problem with that either, but is there any legal reasons why I should do this instead of just telling him to do it and give me a copy of the key?

Thanks!

Jason

Has anyone ever used Consulting & Beyond for financing? I found them through the BP forums and they might be able to help me get financing for a deal I am trying to close, but they are a new company. Very new, actually. I looked up their website and it's a super basic godaddy site. They claim to be formed in 2017, but the copyright on the page says 2009. Could be a template oversight. They were definitely formed in 2017 because the website was registered on 11-06-2017 (15 days ago). The domain registrar is Domains by Proxy, which companies use to hide their registrar information. This is not necessarily a bad thing, plenty of legitimate companies use this service. I can't decide if they are legit or not. Holding off filling out the application until I get everyone's input. 

@Raphael Chadli I'm looking for funding for my second investment property. I already found a property I am trying to purchase. Please email me at [email protected]. Thanks!

Oh and BTW, I use eRentPayments.com to manage rent payments. This allows the tenant to contribute to their credit report as well as set up automatic payments, etc. 

Thanks for the info! I used Mint a few years ago for personal stuff, I didn't realize it could be this helpful for rental properties. And I had not thought of individual accounts for each property. I'll also look into Quickbooks Online.