All Forum Posts by: Nicholas Wallraff

That is interesting. The bank did not have me sign anything saying I would sell the house, just needed proof that the house was on the MLS before the closing date.

You are correct that the mortgage for my house was still listed as a liability on the 3 Plex mortgage paperwork. If this is the case then why would they make us go through all the effort to change who's name is on the title if it doesn't change the DTI?

I absolutely do not want to do anything fraudulent or illegal.  Just don't want to sell a good rental if I can help it.  

First off, This is my first post outside the confines of the local forums, so hello to all you wonderful people!

A little background, I am a seasonal Wildland firefighter for the U.S. Forest Service, this means I'm gone a lot in the summers.  While I was home for a bit this summer my realtor showed me an off-market deal on a 3 plex and I was able to get an offer accepted.  The bank approved financing and we were a go!  Timing wasn't great but it was a good deal so who cares!  

Off to Oregon I went for 20 days with spotty cell service with much anticipation of closing on the new property when I returned.  I own another house, it was a live in flip, I bought it when I was 20 years old and my father co-signed because of my lack of credit.  The flip process was done but I was planning on keeping it and turning it into a rental.  That is when the bank contacted me and said that my debt to income ratios would not work if I wanted to keep both properties.  They said the house would have to be listed for sale before the closing date in order for them to lend on the 3 plex.  This was bad news however I wasn't too worried.  I had lived there for 2 years 6 months so the tax situation was covered and with the value add of the flip I could take the cash and reinvest it in new properties.  The numbers would still have been way better to hold it as a rental (nearly 2% rule with my before rehab purchase price), but I didn't have time or the ability to try to look into other financing while I was in Oregon.

Fast forward to 1 week from closing and the bank says that they will have to take my name off the title for the house and leave it in just my father's name. I was away for work and did not have time to get into the details with the bank at the time. I didn't want to lose the 3 plex so we went along with what they said, but it didn't sit right that they were going to remove my name from the title (to meet debt to income requirements) and then also mandate that the property is listed on the MLS (even though my name wasn't on the title).

The 3 plex was purchased and the City rental Inspection is this week.  My father was very generous by putting up with the bank during this process, however he is not interested in having a rental property in his name.  I am working on a way that I can keep the house and use it as a rental.  Right now it is sitting on the market going into winter in Iowa (2 inches of snow today), we all know how many people want to move into a new house in the snow.  I have meetings with several banks this week to discuss refinancing, However I worry that I will run into the same debt to income issues.  I am also looking into doing a quit-claim deed, however I know that my dad would be uneasy with that idea.  I have built relationships with a few investors who would be interested in partnering but it is not a large property and may not be worth the time to manage if the cash flow was split.

Are there any other ways that I could turn this property into a rental instead of having it leech my savings for the next 4 months til the market picks up?  Please help!

Nick Wallraff

Would it be alright if I joined you all as well?  My work schedule may make it difficult, however if it works out I'd love to come along and meet some of the people behind these circular portraits!

There are no real real estate investor groups that meet regularly that I am aware of.  This is not a big deal though, you will still be able to meet people and make connections.  When you start shopping for properties your realtor will most likely know people who own rentals, also, when you look at properties in person you can meet other property owners or brokers.  One of my best contacts so far was the owner of the rental house next to mine, we now talk regularly and exchange property listings.  lastly, Cedar Rapids requires new landlords to register with the city and take a training class that will put you in the same room as many fellow landlords.  After that It's just up to you to make some friends! Good Luck!

I appreciate the responses.  I ended up doing the work myself on this project but I will have it done in May and be looking for a new investment.  I will probably use this post for guidance on my next one!

I have been wondering the same thing!  I have not had good luck with contractors in Cedar Rapids.  Hopefully someone with a good experience has some suggestions.

Hello, I am curious to hear from  fellow Iowa investors about the effects of newly constructed rental properties on existing properties and rents.  My first property is a Single Family house very near to downtown Cedar Rapids.  Within a mile radius of my house there seems to be hundreds of apartments that have either recently opened or are currently under construction, and I'm sure this is also the case with other Iowa Urban cities as well.  So my question to you is are you concerned about these newly constructed apartments and their possible effects on values and rents for other rental properties in the area?  Is this something to pay close attention to or simply normal progression of the times?

Thanks for the warm welcome!  I am glad to see some local people active on the site, I'm sure I will have many questions down the road.  Also, @Glenn McCrorey Unbeknownst to me I happened to hear your episode of the bigger pockets podcast today at work! It is great to hear about someone having success in our area!

Hello, my name is Nick Wallraff.  I am a 22 year old volunteer firefighter who works in public service and is working my way towards a career in firefighting and real estate investments.  I bought my first property just over a year ago with no idea what I was doing except that I didn't want to pay rent on something that I couldn't re-sell.  My First house is a live-in flip/house hack (although I didn't know any of those terms when I started).  This project is nearing completion and I am getting ready to move onto more properties.  I am currently debating whether to refinance and rent my current property or sell it and move in a new direction.

A friend or mine mentioned the Bigger Pockets Podcast to me as I was looking for something to listen to to stay awake on a long car ride.  I had never heard of it nor did I have any knowledge of real estate investing in terms of cash flow or long term wealth.  Bigger Pockets opened an entirely new world to me that day and has been a fantastic tool in creating baseline knowledge of this thing called real estate investing.  Now I'm reading one investing/business/personal development book a week and I am looking forward to continuing  learning as much as possible from the people here.

I am interested in small multifamily units and am looking for deals in that niche.  I am also seeking contacts with anyone in my area who is involved in real estate investing at some level.