All Forum Posts by: Kushaal Malde

You could start with Commercial Real Estate Investing for Dummies, breaks down all the fundamentals of a deal and will give you insight where you may want to then dive deeper. 

Hi Cheska, this is a great way to take advantage of a 2nd home loan-- 10% down and interest rates almost as good as a Primary. One caveat is the monthly payments would go against your DTI and you can't count rental income against it.

I also invest OOS in NEO from CA. As with any acquisition you should conduct not only a physical inspection, but also a legal and financial inspection. It would behoove a buyer to visit the place to put a local team together who can run the day to day for them.

Questions to ask your agent: What deferred maintenance is known and what were some recent capex items done on the property? 

It's good that you're setting aside taxes!

The thing I would question or alter is your breakdown for personal day-to-day expenses and whether that could be reallocated more aggressively towards investing in your business or other streams of income, which could also be dependent or influenced by your "other streams of income".

Ultimately the allocation should depend on your business and investment goals.

Daniel, a few thoughts I had:

Since the DTI is the issue, income is too low or debt is too high...

Can you refinance the other "cash flowing rentals" assuming either there is equity to capture OR an interest rate you can slash. Then your debt decreases AND income increases helping DTI in 2d.

OR, can you house hack the next rehab project with a 203k.

If you have good credit and the other rentals are cash flowing, you will have options. 

What are your thoughts?

"Private/hard money, family, partnerships" --> Start there!

Alternatively...

Have you approached the seller to  see if they are willing to carry? 

Have you considered house-hacking, where your LTV requirements would drop to 3.5-5%?

If you let it season for 1-3 months (depends on the lender), and it does not need to repaid, there should not be an issue. 

See this thread for reference: https://www.biggerpockets.com/...

@Mary Gold please update us -- what did you end up doing here?

Refinance and invest. 

Why give up something so stable with so much equity? 

$4000 across 3 doors is $1300+ per door-- likely better than any cash flowing asset you would be trading into. Think about the opportunity cost of your capital.

(Refinancing should give you sufficient capital to jumpstart making more passive income.)

I'm selling a vacant, fully renovated 3/1.5 SFH in Cle Hts 44118 for 180k if you don't want to deal with inherited tenants