All Forum Posts by: Michael Dunn

Jon and David thank you both for your answers,

I have been saving every Receipt that I receive from the tenant , that he signs, I sign , it has the date and amount of the rent located on it.

And yes, I am wanting the Rent to show up as Income , so that It will show that I am making more on a yearly basis , so that when I go to do a Cash-Out refi. , and thus try and qualify for another loan ( this time to purchase an Investment Property ), that this Rent income will help me out DTI wise.

Good Afternoon,

I have what is likely a basic question, but yet I am stumped on what the actual answer is.

My question is ...... I purchased a property via a Trustee , that had a Tennant/Renter living in the Mother-in-Law wing of this property for over 2 years .

Well I purchased this property 2 months ago and the Tennant is still in the Mother-in-Law wing renting it out .

Since I am now the new owner, can I not claim the Rent money as actual Income ?

Thank you for the input

David DuCille,

Thank you for that great information.  Really Helps to answer a lot.

A few questions please from your reply .....

1. Regarding problems found such as the retaining wall needing a few minor things completed to have it pass the VA's guidelines ..... Will the Bank usually always make this repairs on " Their Behalf " in order to get the dal done , but yet roll the costs of these Repairs into your Overall loan .... So you're initially paying for the repairs that have to be done in order for it to pass the VA inspection/standards, you're just Not having to pay for them up front out of your own pocket ?

And also, if any Repairs are found during the Appraisal , this just further pushes back everything ..... Your Closing Date , etc. ( thus costing you more money ) ?

2. It seems that a great idea for someone who is wanting to buy a Foreclosed property/REO with a VA Loan , is to find those that have the " Renovation Logo " next to them ( those listed on the HomePath website, as this houses have likely been renovated and or had things fixed, that should allow the house to Pass most Lenders guidelines ...... I.E. VA in this instance ?

What about properties that are listed on the HUD HomeStore website though .... They make no repairs , so how could someone get around this do you think , and be able to buy a HUD listed property using a VA Loan ? Pay for any and all repairs found by the Appraiser out of your own pocket ? Do an Escrow Account for the Repairs ?

3.  And lastly please......

how does a Refinance ( Cash-Out ) work when you have a VA Loan , in that ...... What is the Average LTV you can get with a VA Loan ? Is it 80% ? 90% ? 100% ?

And what is the Seasoning Period for VA loans, before you can do the Refi. ...... 6 months ? 1 Year ?

Thank you again, really appreciate your reply and help

Samantha Reeves,

Sorry to bug you again with another question

Just wanted to quickly ask you please, how a Refinance ( Cash-Out ) works when you have a VA Loan , in that ...... What is the Average LTV you can get with a VA Loan ? Is it 80% ? 90% ? 100% ?

I have heard conflicting answers . So just curious :)

Thank you again , for your time , help and insight

Brent Coombs,

Great points

As they say... Patience is a virtue

Samantha,

Thank you so much

You've been a huge help , Very much appreciate it

Meant to also ask in the last post ...... When going for a Portfolio Loan to purchase an Investment Property , aside from having the money necessary to put 25% down, what other things Do the Banks/Lender look for and want to see, on whether or not they will give you this type of loan ?

Credit Score ?

X amount of money in your Bank account ...... 3 months worth of Rent?  6 months worth of rent ?

Samantha Reeves,

Thank you again for your reply

Hopefully if I run into this " Problem " with the property requiring $3,000 in repairs completed in order for it t pas the VA Loan standards , my Lender will o an Escrow Holdback .

But either way ( if I understand it correctly ) ...... whether I use an Escrow Hold Back or not, I will have to ay for the repairs out of my Own pocket, UNLESS the seller will pay for them ?

With he Seller Paying for the repairs, what type of scenarios are they more likely to Pay for the repairs vs NOT pay for the repairs ?

Does it depend on the Amount in repairs that are required per the Appraiser ?

Or is a matter of how desperate the seller is to sell the property .... maybe it has been on the market for more than 60 days, or maybe it had a Contract fall through , and they are just ready to get it sold ?

Thanks so much

Jeremy Paschedag,

Thank you for your reply

No seasoning Period would be nice, for the simple fact that if the Rehab is completed in 3 months from closing, it'd be nice to be able to do the Cash-Out refi.  right then, and get the $ to put down as the down payment of 25% on the next property

Is the 6 month Seasoning Period mainly associated with Conventional ( 20% down ) loans ?  What about Portfolio Loans where you put ( 25% down ) .... Possible NO Seasoning with a Portfolio / 25% down loan ?

Thank you again

Brent Coombs,

Makes sense now, Thank you for explaining it

Real Quick Please...... 

1. With using a Portfolio Loan ( or any other type of financing for that matter ) , to purchase Investment Properties using the BRRR Strategy , Is there any way to get around the Seasoning Period requirements.... I.E. having NO seasoning requirement ?

2.  And as far as repairing these properties , when you purchase a property as an Investment property, what timeline do most Lenders put on you, to have the property renovated and completed by ..... 3 months from closing ?  6 months ?

And what if you have the skill set ( and proof ) that you yourself can do certain repairs yourself ..... Replacing Rotten wood/siding, Paint the interior and exterior, do the Flooring, install new Cabinets and countertops .  Will most Lenders allow you to do that type of work yourself ?  And mainly just Hire out the Electrical and plumbing ( if Needed ) , as well as hire out having a new roof put on ( if needed ) ?

Thank you again, really learning a lot about the BRRR strategy and the in and outs of it