All Forum Posts by: Jesse Flores

Jesse Flores has started 2 posts and replied 47 times.

Originally posted by @Jill F.:

@Jesse Flores That was the situation we were in as retirees. We were living off our savings and had decent assets. We were able to find a local portfolio lender to work with. They've financed almost 2 million for us now.

Nice! I think I’ll go and talk to my Credit Union. Question... How did you find the local portfolio lender?

Thanks again @Jill F.

Jesse

0 Votes

Originally posted by @Joe Splitrock:

My guess is you are looking to get conventional financing, which is Fannie / Freddie backed 15 or 30 year fixed mortgage type products. You will need income to qualify for conventional financing to meet underwriting requirements. The rental property income is not counted until you own it for a period of time.

Talk to a bank about a commercial loan. That type of loan is held by the bank and you will get terms like 20 year amortization and 5 year term. The rate will not be quite as good as conventional, but you can't meet the underwriting requirements so try a different loan product.

@Joe Splitrock. We did look at that option. You are correct on the commercial loan option and the rates were quite a bit more than conventional. I figured I could get better rates but wait a bit. I’m fairly confident things will work out. Keeping my fingers crossed! Thanks for everyone’s input and advise!

1 Vote

Originally posted by @Josh C.:

What’s the plan when the $225k runs out? At point you’ll need a job at some point. If you got one now it would solve your income problem.

@Josh C. We ( my wife and) have a few plans we might go with and yes one of them is for both of us to get a job. I retired this past summer and used to work in IT, specifically ETL. There are contractor jobs out there and a good portion are work from home so I can always do that and the pay is upwards of $100K. We are just weighing our options. Another option is to take a loan on my retirement account to flip a house then payoff loan and keep profits. Then repeat. Fairly confident things will work out.

1 Vote

Originally posted by @Matt M.:

@Jesse Flores

The rents are $750/month each unit? So $99k per unit?

Just curious because those numbers don’t seem very good

@Matt M - yes looking at right under $18k per year for both units. So it is under the 1% rule If I was going to finance. I am going to wait about a year and then finance. Unfortunately rental property is hard to come by in my area and $750 per month is about average for 2/2. Hence wait about a year, finance and raise rent slightly.

0 Votes

Originally posted by @Charles Carillo:

@Jesse Flores

Why have you been declined for financing...no income? If income is the problem, I do not think you are going to find a reasonable lender. If you had income, I would suggest you purchase it in cash, do renovations, get it rented and refinance it. Maybe find a lender that can loan you money against your retirement?

Thanks @Charles Carillo! Yes, no income. Luckily the duplex is fairly new so needs no renovations. Both units are also already rented and both tenants have reupped for another year. So all looks good. Also the real estate agent is an old high school friend so he said he is going to talk to the loan officer and see what he can do. I’m fine at this point to pay cash and then wait a bit and refinance. Like I had stated, this is my first rental property and was getting a bit anxious. I’ll repost again later today or tomorrow and let you know where I am. Thanks again!

Best regards,

Jesse

1 Vote

Hi BiggerPockets,

I am looking to buy a duplex for $198K plus minimal closing costs. Income is $750 per unit or $1,500 per month. I wanted to get a loan with 25 % down payment. I have already put in a bid for the duplex but the loan agent cannot get me a loan with decent terms. I have a little over $800K in my retirements savings and $225K in cash. The agent is now asking me if I want to pay cash for the duplex. I'm living on the $225K cash and currently do not have a mortgage as I'm looking for home also so I'm staying in a property that belongs to my father (rent free of course as the home is paid in full and he was not renting it out).

So BPer's... What do you think I should do? I do not want to touch my retirement account but I could get say 2 - 3 % and at least have some income. Please advise as I'm not sure if I should go ahead and pay cash for the duplex (then I wouldn't have any more $ for any more deals).

Please give me any advise as to what I should do as this is my first rental property. I thank you all in advance on any advice given.

Best regards,

Jesse

10 Votes

I was looking into buying a 43 acre piece of land about a month ago. When I finally found out who the seller was it turned out he was a commercial builder and his brother was residential builder. We chatted for a while an he actually convinced not to buy the property because of the increase of construction material.

My intent was to start building single family homes. Boy did I dodge a bullet and this was going to be my first foray into real estate. I guess the seller had a bit of pity on me and explained what was going on in the market.

I thanked him and even treated him and his wife to a steak dinner. Karma was on my side that day!

Now looking into STR in South Padre Island as I live about 35 miles from there. Hopefully the karma thing sticks with me! Good luck to everyone!

0 Votes

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All Forum Posts by: Jesse Flores

Jesse Flores has started 2 posts and replied 47 times.

Post: No income but plenty of assets and can't qualify for a 198K loan

Post: No income but plenty of assets and can't qualify for a 198K loan

Post: No income but plenty of assets and can't qualify for a 198K loan

Post: No income but plenty of assets and can't qualify for a 198K loan

Post: No income but plenty of assets and can't qualify for a 198K loan

Post: No income but plenty of assets and can't qualify for a 198K loan

Post: Why is Lumber so Expensive? (Part 2 - Update)