All Forum Posts by: Mike Malyy

@Andrea Lane thank you for your reply. The financing would be in my name and would be for a primary residence, because I don’t have one at the moment, and I want to take advantage of low down payment option.

However, I wouldn't mind getting your HML contacts as I'm looking at investment properties as well.

Hi,

I am a still a small time investor and still work my W2 while I try to build a portfolio. I am currently running into an issue with some lenders which prevents me from acquiring financing. I own an investment property, but not a primary residence. The issue is, I am on the deed to my parents' primary residence, but not on the mortgage. I have reached out to a number of lenders and brokers, and I am being told that they are required to count my parents' mortgage as a liability against my DTI, which prevents me from getting another mortgage. I find it ridiculous. I understand that I am liable for taxes and insurance because my name is on the deed, but not the mortgage. Additionally, Chase bank tends to agree with me as they had absolutely no problem qualifying me for another mortgage, but Chase doesn't want to finance anything that has dry rot (which any discounted property will have) due to it being a health issue. Needless to say, Chase won't finance anything I want to buy.

My mortgage broker suggested either taking me off the parents' deed (which I don't want to do at this point) or providing 12 months of bank statements that my parents have been paying mortgage out of their account without my name on it (which I am unable to do because of certain arrangements with my parents).

It would be great if a lender or an experienced investor could chime in and let me know if there are other alternatives to deal with this as I have already found the property that I want to purchase.

Thanks

@Jack Stewart IMHO, if you are in it for a long run and your numbers work out, then price doesn’t matter

@Bruce Woodruff thanks Bruce. Coring has been done. As long as they won’t make me tear out entire bathroom, I should be good on the rest.

@Bruce Woodruff once everything is said and done it will be permitted with all inspections. I will be redoing some things so will need new permits.

Speaking of STR, this is why I was thinking master suite. In our jurisdiction, a full time STR is only allowed if it's a) a primary residence, b) there's a long term tenant in place with a lease of at least 6 months. Due to housing shortage no full time STRs are allowed. My plan was to house hack the main house and maybe do an STR in the garage, then I have to make it into a master suite for it to be a part of my primary residence and be legal. Once I decided to move on, I would put a long term tenant in and still be legal (or vice versa).

If I do separate the garage into a studio/1 bed, then I will target traveling nurses because I have a few hospitals in the vicinity.

@Dan Sundberg yes, that's the plan later on. The detached garage also has a 1/1 ADU on the side so it will turn into a duplex eventually.

@Dan Sundberg thanks Dan. Garage that was converted is attached. Second garage built in the back is detached.

Hi,

I am looking for recommendations on a surveyor to map out property boundaries and structures. Any references would be appreciated.

Thanks

@Andrew Postell yes. Sacramento local forum is barely alive for some reason. I posted in general section in hopes that an appraiser would chime in, or someone who deals with appraisals a lot.

Either way, I thank you for your input.

@Andrew Postell thanks for your response. To be clear, garage conversion already happened. I’m just trying to get opinions on what the conversion should end up being. There’s already a detached garage built in the back of the property too, so the is shouldn’t be much of an issue.

In terms of comps, there are not any comps with a garage conversion, only with additional bed/bath.