All Forum Posts by: Kent Nielson

Curious about the earlier statement about rents and vacancies dropping during the recession....I would have guesses the opposite since a lot of people lost their homes and downsized. Could they just not afford it so landlords were forced to lower prices?

Is the property associated with your personal business? Some lenders have different guidelines, but where I was at if you could prove an expense was paid by your business for 12 months you didn't have to count it against your personal DTI. That included tax returns and bank statements and whatever else the underwriter felt necessary.

Besides that, it seems ok. Perhaps the lender is getting cold feet. If you didn't get a second or third option when you first started, I would do it now.

Conventional loans are down to 3% down, FHA is 3.5%. If you don't mind living outside of town, USDA is 100% financing. Your state will probably have a 100% financing option, but the rate will probably be a little higher. But if it's short term, no biggie. That's assuming you actually only stay there for 5 years. To be safe I would plan on the worst case scenario. There is also the option of raising your rate a tiny bit and have the lender pay your closing costs. So there are definitely options. I've had clients actually get money back at closing on a purchase. BUT...the most important thing is to go to a local mortgage lender in your area. Meet someone face to face who knows the area, when taxes are collected, local HOAs, etc. National lenders in cubicles somewhere sometimes are a little out of touch. Credit unions are good, but I would recommend an actual mortgage company. They know their stuff inside and out.

Thanks @Dmitriy Fomichenko I always wondered how to do that!

If you do decide to keep it shop around with lenders. Some have different guidelines. The last place I was at didn't care if you had the rental income for a year or if it was on tax returns. They just strictly went off of your current rent similar to what Shane pointed out. (75% of rent can count toward income) They will probably just want a signed lease with a paper trail of the deposit from your future tenant.

Thanks George!

 I would also recommend getting title insurance :)

I've listened to a TON of the podcasts and pretty much all of this is covered at one point or another. Pretty solid intro, well done.

Hey Brian

Thanks for the info. Well I'm actually two of the four lol. I built homes forever and I've been doing mortgages for the last 5 years. I'm going to get my contractors license again so I can have another way to add value to other investors.

As far as the house hack, I'm not able to just yet. Long story but I took a year off to deal with family stuff and I'm no longer able to qualify. So until then I plan on partnering up for some deals.

Sounds good Uwe. I'll catch up with you next week and we can set up a time.