All Forum Posts by: Pete T.

Can you clarify on the type of property your looking at? I thought you were talking about DTI, but I am seeing post about DSCR, which would be a factor in a commercial property.

@Daniel Dietz it all depends on the bank. Some will use 75% of rents, others will use the expenses and give a certain percentage of income. Find a bank that fits your criteria bc as regulated as things are, different lenders look at rental income differently.

@David Jackson, I understand everyone says you should be title insurance for protection, but I always question its value when the process looks at all the possible threats and then makes those exempt. Wouldnt those be the most likely things you would be worried about?

@Michael Baradell it sounds like your mind was already made up prior to asking the question. Either way, I think the most important thing is that all 3 of you sit down and brainstorm every possible situation and every part of the partnership possible and get it on paper so there is less chance for disagreements in the future.

Good faith estimate is required to have the APR, interest rate, etc.

Hopefully the tenant took pics and/or did a walk through w/ the owner when they turned over the keys. Otherwise it could be hard to prove, especially bc it makes no sense for the landlord to do the damage/

contingencies are?

exceptions (ie- Home inspection contingency- contract could be voided or changed based on the results), financing (subject to loan approved), selling another house, etc. The more you have, the less appealing your deal is bc there are more ways for it to not reach closing.

I have been told you could be stuck w/ more than one property, so it could be risky, but you can cancel any contract, at any point prior to it being signed by the other party. It would probably be easier to put a time limit in writing or communicate that are going to write an offer on another property and withdraw. Earnest money is usually sent (or a copy of) w/ the offer, but wouldnt be an issue until after ratified and I have never had a problem receiving after wards if something cancels the contract. Most agents will want proof of funds or a pre-approved loan letter w/ an offer. Yes- Have an idea of anything to add, contengencies, etc. The agent can help you w/ some of that, but it is always best to know what is important to you in advance.

Everyone deserves a second chance, but odds are that they are not getting it from me. I have been burned by too many tenants to consider someone just getting out of jail. Yes, they could be a great tenant, but they already have a track record of not following rules. I look at it as there is always a risk, but I am going to go w/ the person I see w/ no issues with before I give a chance to someone else.

I cant speak to flips, as I havent done any, but to me it seems risky as things are always found and even if you do everything right, you are dependent on a buyer. Renting seems harder to mess up IMO. You figure your cost, income, and purchase. Find the right tenant (ie-tenant buyer) and it can work out good.