All Forum Posts by: Nick Colvill

 Thank you for this input! 

In your experience, is there a larger required downpayment for commercial compared to residential or does that depend on the lender?

This has all been monumentally helpful and I'm quite sure it has answered my questions perfectly.

 This tells me all I need to know - that I was under the wrong impression about what the lender would require regarding using the existing rents to off set the debt. It appears from this thread that i'm learning that a solid rent roll, along with leases to accompany it should suffice. Can not thank you guys enough

@Parker Borofsky hey thanks for the reply! It's a 4 unit property. I imagine finding the range for what the going rent would be is, in theory, easier - but would that information be enough for a lender in terms of qualifying that income against the debt for qualification purposes? 

I'm sure you guys that have real life experience (unlike myself since this is my first one) can touch on that question. I can't imagine having to qualify for each subsequent future property with strictly my personal income, so what forms of information and data have been proven to be sufficient in the eyes of the lenders you guys have worked with? 

Great response and i'm very happy that my first post has received such a knowledgeable veterans input

To answer your last question of would it be really shady that it's so far below market - what i'm noticing is that they are giving me pro forma numbers (best case scenario) to make the place look like a good deal, and my concern is that if the rents were too far below that, there may be a reason that they are hiding for it. On one hand, they me be just like you and not raise it often, but it also may be because there is something else lurking - just my initial thoughts

Also, in order to get the lender financing they are requesting the Schedule E to verify the income to use to offset the debt, so that I don't have to get qualified using just my numbers. I already own two homes that are my personal residences, and my DTI most likely wouldn't sustain another house WITHOUT the lender offsetting the debt with the rents to some degree - is there any other method of providing lenders with rent history that you have used? Thanks!

I'm new to investing in multi family units and plan to make my first purchase in a few months. I know the Schedule E is what a landlord should be filing come tax season, and I know my lender will want to see the Schedule E for the property for loan purposes. When a seller says they don't have one or can't provide a Schedule E, is that a red flag?