All Forum Posts by: Mark Douglas

Julie Marquez Gotcha, I'm going to reach out to a photographer and see what his price would look like. Thanks !

@Andrew Teng  2nd @Jeff Wallace and @Wendell De Guzman, you want to make sure the lender is accounting for the rent from Property A.  It doesn't take much to tip the scales in your favor.  Did they say what your total debt ratio is?  Are they looking at any other debt (i.e. car, student loan, credit cards, etc)?  Usually, most residential lenders won't go past 43% TD, some won't go past 41%. 

Hope this helps !

@Peter Mckernan  Thanks Peter!

@Account Closed The problem you may run into when trying to transfer the property from your name into an LLC is potentially violating the "due on sale" clause, which will more than likely appear in the deed. This clause says that (paraphrasing) 'If you transfer title to the property, the bank has the right to call the balance of the note due and payable'. You'll find tons of forum chat about this topic, as it's really popular. A lot of investors will quit claim the property over to an LLC, and basically ignore the clause. It is very rare that the bank will actually call the note to be paid, but if they do, you could "pay" the note off by simply refinancing.

You can put the property into an LLC as soon as you own it, so the day of closing or whenever thereafter. The 1 year deal is only in reference to your occupying the dwelling.

Still, I'd recommend running this by a real estate attorney to get their take on it!

Is it worth getting an actual photographer to take pics of the unit, or is an iPhone good enough..?

Congrats on the early first purchase man ! Having the discipline that you had to save for those two years may be the answer to how to come up with the 25%, unless you get a hard money loan, private loan, HELOC, cash-out refi on the single family, etc.

Best!

Mark

Jeff B. Do you know what the max number of conventional loans is?

Loubert Antoine The maximum number of conventional loans changes every so often; I'm not sure what it is now, but at one point it was 4, then 8, then 10. Now I think it's back down to 8...? Not 100% on that, but also keep in mind your total debt ratio will play a part in the lender's decision. The most any bank will go is 43%, but some cut it off at 41%. So if the max number of loans is set at 10 and you've got 5, but your TD is over the limit, you may run into a snag. Just food for thought, but check on that updated max loan amount...

Alex Linden (see above lol)

Alex Linden Personally, I didn't run into problems going with a multi unit with FHA, though I've seen quite a few properties that say "No FHA" in the description, mainly because there's more paperwork involved for the lender and the seller. If the property needs a lot of work, sometimes the lender won't do an FHA on it; most lenders follow HUDs guidelines with regards to the property condition, so it can't be a property that's falling apart. If you can find a lender that will do the 203(k) rehab loan, you might have a better shot at getting a fixer-upper. Ultimately it will be the lender's discretion.