All Forum Posts by: Nnabuenyi Anigbogu

This also depends on the particular bank that you are using. Some banks source the funds down to the details to ensure you are using the down payment funds you declared in the beginning.

i.e. I had the cash in my account and wanted to borrow money for the DP. However i had to show that the cash was in my account to apply for the loan since borrowed funds are not allowed. When i wired the money to the escrow officer for closing i had to show proof that that money was coming from the same account that i initially declared when applying for the loan. So there was no way for me to switch and used borrowed funds. Some banks like @Justin H. mentioned might not check that and you can therefore switch up the source at closing.

I do not believe you can just transfer the loan to one spouse. You would have to do a full refinance which may or may not be worth it depending on your interest rate and closing costs.

I was interested in doing this myself since i unfortunately did not think of separating loans when i bought my 4 unit. However if i refinanced i will be giving up my 3.8% interest rate for a 4.3% rate which is not worth it for me.

@Fred Heller

 I lived in Oak Park for about 10 years and i used to bike through North Riverside which i later found out was a heavy Mob area. The houses there are quite nice. I did not know however that River Forest was a mob area too although it makes perfect sense now that i think about it.

@Igor S.

 It is very tempting to see what will happen allright. I almost want to tell them to come rent fro me in the city. It might reduce the crime rate in the area. 

Wow. Only in Chicago. haha. Well at least you know that they are good for the money. Now renting to them might be a pain though. If you take too long to fix the toilet, you could get a visit from an enforcer. That would be a sight to see. 

I am assuming you are passing on them. If not let me know how it goes.

I would definitely pursue them if i had access to those lists. While many might dig there heels in and refuse to budge, all it takes is one good deal to make months of marketing worth it. I would ensure that i am touching then (direct mail) at least once a month if it was me.

@Aristotle Kumpis

I would love to take a look at your inventory. Always on the lookout for more chicago properties. please send them to [email protected]

Thank you

I have been looking into this lately in order to do something similar with my 401k. As far as I know you will not be able to do this. 

The only way i have seen that works well is if you guys have a third unrelated party that is not a disqualified party that can do the flips. He can then lend money to the entity of the third party. As long as he is completely passive and the third party essentially runs the flip its doable. The returns then go back into the IRA/401k.

There might be other ways but i haven't finished my research. If i run into other ways for this to work i can share them.

Wow @Daniel I.

I like what you are doing. I am hoping to get there in the next couple of years myself. As of now im keeping the W2 to help with financing rentals. Good luck to you and i hope it works out well.

P.S. Wedding photography is quite lucrative. I am in the process of hiring one for my own wedding and man those prices kill me.

@Frantzces Lys

Sry i forgot to post it. it is [email protected].

thanks

Hi @Kenneth Cowan

There are multiple ways this can play out and some of it is dependent on your lender. It should not be too much trouble however.

In my experience (i did the same thing), you will not need to have two years of rental history for it to count. If you have 30% equity in the first property and a signed lease you can usually count the rental income as part of your DTI. If not you will probably have to qualify with both mortgages.

You will have to ensure you work with a direct lender because sometimes banks have overlays that limit what you can do. You may have to shop around when it comes time for the new place.

Hope that helps a bit. Im sure some more knowledgeable people will chime in soon.