All Forum Posts by: Rumen Mladenov

I am also interested in the meetup btw. Please shoot me a message when you have the date and time set. I will be happy to share my experience with buy and holds. I am with you on the flips - haven't done any yet but will jump in if the right deal comes along.

Welcome to BP @Jason Halpin! Are you looking to do flips, or buy and hold rentals?

I have to agree with @Steve Moody, this definitely looks like a scam on the CL ads. You have the rent listed at $1400, $1350 and $1150, and it is not very clear whether it is 2 bedroom or 3 bedroom.

I know there are scammers on CL because applicants who back off my units when they find much better deals come back a few days later saying the other place was a scam... If potential renters got burned once or twice, they would probably see the red flags in your listings and assume it is a scam.

Good luck, hope you get it rented soon!

I would have to agree with @Eric Armstrong, good deals do not last on MLS in our market. Last one I found, I put an offer close to asking price the day it was listed, and got it under contract the following day. Anything else that catches my eye on MLS is already under contract by the time I ask my agent to see it.

+1 for not advertising it until it is ready. I used to do that, and noticed that when I put an ad when I start working on a place, I get a lot of foot traffic and a lot of promises to come back in a couple of weeks to see the progress - almost never followed up. Halfway through the rehab people get more interested and some start submitting applications, and when I am close to done pretty much everyone who sees it fills out an application. However by then the foot traffic is much slower, so fewer applicants to choose from. Best to have the initial rush when the house is ready to show.

Hey @David Christoph, welcome to BP! Are you planning to do flips, or buy and holds? I will be happy to share my experience with rentals, but I haven't made any flips yet.

@Brie Schmidt "minus your PITI payment and that is your monthly net income."

Do they count the mortgages as debt in this case? If so, it would seem that PITI is being double counted...

@Brie Schmidt I always found the DTI calculation for real estate investors confusing. Say I have 10 properties that rent for $1000 each and have $500 mortgage payments and $250 other expenses, how do you calculate DTI? The last lender I approached took the net income from my Schedule E (in this case - $250*10 = $2500), and divided my mortgage payments over that income ($5000/$2500 = 200% in this case). I am pretty sure that was not the right way to do it, but I was unable to get him to reconsider - he was basically stuck at "DTI is all debt divided by all income, this is how we calculate it"

Is it for buy and hold, or flip?

Thanks @Brian Gibbons. My concern with Sub 2 is the possibility of the "due on sale" clause being triggered before I am able to pay off the balance. The seller had their mortgage modified, not sure if that increases or reduces the risk... Lender is JPMorgan Chase.