All Forum Posts by: Paul Zofsak

It was suggested to me that I could use hard money to secure a property and then refinance 3-4 months or so later to a conventional loan. The idea being that a refinance is easier to acquire than a standard conventional loan from the beginning; and possibly not require the standard 20%-25% down. Could someone please clarify this for me? I have looked into a conventional loan but have been told by one lender that my debt to income is too high since my first rental has not been on my taxes for two years. Would a hard money loan be easier to secure?

If that was the case then I should show $225 positive cashflow towrds my dti. I have only tried one place thus far that my agent recommended; he was also pretty shocked I didn't get approved. Can anyone recommend a lender to go through? What is better in your opinion, online lenders, traditional banks, or other?

So, I have to wait another year before I can get my DTI to use my rental income and just count the PITI against me? That seems like a long time to wait, especially with the market turning the way it is. Is there any type of lender that is not going to focus on the DTI so much but will consider the rental history, my income, my actual debt...?

since march of 2005, however it was my primary residence until september 2011

I was recently turned down for a conventional loan because I was told my DTI was too high; everything else looked great except that. I have one property so far and it is turning a profit, the only other debt I have is the mortgage on my personal home and some student loans I cosigned on for my wife. With the rental property figured in I am at 48% and without it I am at 35%. Is there any other way to go about this or maybe look into something else all together? I have started an LLC for the real estate investing, but am tied to the loan personally. There has to be something I am overlooking...

Thanks everyone, I have gotten a lot to take into consideration, but mostly that I was on the right track to begin with. Now, on to the next challenge.

Yes, cypress , Katy and cyfair school district area

We plan to buy and hold. I prefer the cashflow of multifamily, however in my area sfh are available at a rate of about 50 to 1 multifamily. We are looking at starting on the nw side of Houston, a very large subdivision style area with new neighbor hoods always under development and excellent schools. Considering buying a sfh here with a high desirability by tenants. Or a multifamily closer in to the city that will cost a little more but will generate mote cash. The sfh in our area are generally 10 years old or less, multifamily near the city can vary greatly in age. My agent is telling me that sfh is the way to go but I always prefer to get several opinions.

Right now the SFH market in my area has shifted rapidly to a seller's market, which I am guessing will drive down the inventory and make renting a more viable option for many more people. Also in my area duplexes are not very common, I would have to go closer in to the city which means older buildings, lower income tenants, and a higher likelihood of the tenants neglecting their obligation on upkeep of the property. Or the other option would be to buy in better areas that are kind of trendy and have prices to match. It seems in my case that SFH may be the route to go, but I just wanted to hear from other investors on their situations.

My wife and I are just starting out and trying to determine which niche is going to be the best for us. We eventually plan on moving into apartment complexes down the road but need to establish that road first. I would like to hear from everyone which they prefer and why, what works and what doesn't. That should help me decide what will be best for us. So what will it be, single family homes, or multi family units...