All Forum Posts by: Jay Hurst

 so, what happens when you go to get a full a doc loan and have to provide tax returns? 

If the above is true, the income will offset the debt in the DTI calculation, so who cares?

 My advice would be only to do this kind of investing in your market.  You need to understand where you are investing. There are kinds of guru's who will help you buy section 8 properties in a turnkey package including the rehab the property will need to get it rented. They will do a slap dash job on a house that still has a bad roof and foundation in a neighborhood that will see zero appreciation.  Understand what you are buying. 

 Are you planning on LIVING in the property?  some of you above statements have me confused.  

There is no license requirement for contractors in Texas. Wild west.  

 @Jordan Kaylor   In that case, you would be using what is called "delayed financing" which just means you will be financing the property after you already own it (as long as it done before 6 months after closing) and if there is not current financing on the property. Your loan would be on a different property so no financing on the property you are buying.  For a conventional loan, you can borrow UP to what you paid for the property plus closing costs OR 75% of the appraised value which ever is less.  

 @Jordan Kaylor   Would your plan be to buy properties that needed work to force appreciation?  or, buying turnkey properties? 

You debt to income (DTI) is calculated from your income as well as your liabilities. What I mean by that is your income/loss from this property will show up on your tax returns. Any lender will see the income/loss in this manner even if the debt is not on your credit report.

 @Kamal Martin Are you looking to purchase a single family or 2-4 unit property? As said above you would not be able to use DSCR for a property you are moving into, BUT if you buy a 2-4 unit property you can use the rent from the non-owner occupied units to offset the mortgage payment. So, not DSCR, but can have the same effect if you buy the right place.

 This is the form any lender should use to calculate you income (ignore the branding, it is the same for every lender):   https://www.biggerpockets.com/forums/49/topics/1224525-fha-l...

You will see what you can add back from your 1120 based on the % of your ownership.