All Forum Posts by: John Stanaway

I have 2 parcels located in Virginia. I am considering building two SFH each with an accessory apartment. Construction will be completed with cash. What are my options to get the most cash out of these properties while holding and renting long term?

I'm thinking a DSCR loan on each property but would like to hear other options.

Does the 6 month seasoning for DSCR start when the land is purchased or when construction is completed?

I plan to have these rented by the time I am looking to cash out if that makes a difference for underwriting. Purchase to construction completion should be close to 6 months.

Thanks for your reply @Chris Mason .  It looks like it will be easiest to move to a short term rental to get my current place rented out.

As for the bonus; last year I chose to be compensated differently for tax purposes (regrettably).  This year I have opted to receive a large bonus (it’s been received).  My employer has treated me fairly.  They haven’t reneged on any promises.  Restructuring to a higher salary is something I have considered in the past but would almost certainly result in lower overall compensation for my position so I won’t be going that route.

I saw somewhere that bonus income is generally averaged for the prior two years when being considered for lending.  I didn’t know if I could simply average this years bonus with last years bonus of $0.

I'm looking to purchase a new home and turn my current home into a rental. My current mortgage is over two years old for those wondering. To offset my current DTI I need to find a lender who will consider future rental income on my current primary residence. It will also be very helpful to consider bonus income from my employer. I show no bonus income for 2018 and will show a very large bonus for 2019.

I currently show about 40% rental income of what I could ask after I move.  The property has a garage apartment that is currently rented and shown on tax return for 2018 and soon 2019.


I have spoken with a few lenders and have heard I need a lease signed on my current residence to consider future income and have heard I can’t use 2019 bonus income because I had no bonus 2018.


I’m hoping someone here may know of a flexible lender they can recommend.  Any other suggestions are welcomed and appreciated as well.

I think worst case scenario I can move into a rental to get my current place rented out.

I have not read all replies so this may have been suggested already... Why not give every tenant the option to stay at the increased rent price without any renovations to their current apartments? As tenants move out you can renovate. But in the meantime you will increase your NOI by much more than if you renovate all of the units up front. Maybe I am overlooking something major. Please correct me as I am here to learn from those with more experience than myself. I don't own any multi family. I currently only have one rental unit.

I would highly recommend you go through an attorney.

I don't know what the average cost is but I can tell you that my attorney charges $150 total for the title search and to talk through the results.

Yes, you can typically just call your attorney and say I need a title search on property XYZ.  I usually provide them with the 911 address, any tax map information, and the owner information.

It shouldn't take any longer to get the title search done going through the attorney.  If your attorney is very busy they may not be able to go over it with you right away. I have them send the title search results by email as soon as they have them and that gives me a chance to look them over and prepare any questions I may have before I go over them with my attorney.

Auctions definitely do cause a time crunch sometimes.  I was in a hurry once for that very reason and my attorney was able to have the search rushed.  I think in that particular case it took three business days.  There may have been an additional $25 or $50 fee for the rush but I don't remember.

In my county, you go to the courthouse and go into the clerk's office.  In the clerks office there is a bank of computers that you can use to look up lien information.  At my county's courthouse you can search by owner's name and by property.

Liens are not the only concern when pertaining to a free and clear title.  When you pay for a title search the company will also check deed records to make sure there are no heirs who have been overlooked who may claim rights to the property.  This is where a professional comes in handy.  While you may be able to adequately conduct the search yourself it is tedious.  At my courthouse all deed records are still hard copies.

When I hire my attorney to do a title search they in turn hire a title company who in turn sends an individual to physically visit the courthouse.  The differences is what comes with the title search.  A title company simply sends what they find with a brief summary page.  Going through a lawyer is helpful if you are inexperienced in reading these reports (I have had many title searches done and I still go through an attorney because I have questions every time).  Your lawyer will be able to answer any questions and give his/her legal opinion as to whether or not you will be able to obtain title insurance and what the likelihood of an ownership dispute may be.

At the end of the day I agree with you.  Go to the courthouse and check for liens.  If you find large liens move on or account for those in your budget.  If you don't find any, or would like to proceed in spite of liens, I would strongly advise you to have a title search done through your attorney.