All Forum Posts by: Robert Anderson

@Nathan Zhivalyuk We treated them essentially the same at the bank that I used to work at. One exception is if you were cashing out on a property, in which case we typically required the person/company to have owned the property for at least 6 months. All of this definitely varies from bank to bank.

Commercial underwriters are typically concerned with cash flow whereas debt to income is typically the main ratio in retail banking. They will include your income and might include projected rental income depending on the bank's policy. The most common cash flow requirement is 1.20x, meaning if your monthly expenses are $1,000 then your monthly income must be $1,200 (120%) or higher. Keep in mind that they might combine your personal income and expenses with your business (rental) income and expenses to calculate this ratio. If you have a 1.20x debt service coverage ratio without including rental income then you'd probably be in great shape.

Hi Kevin,

The threat of special assessments turn some people off, and you also really want to watch the HOA fees. Contact the HOA and ask to see a budget and reserves prior to buying. There are good deals out there but you may want to be conservative with your cash reserves for the reasons mentioned above.

I used to be a small business underwriter at a regional bank and we would typically just look for two years of rental income on your tax returns. If you were trying to finance a rental property but didn't have at least two years of experience with rentals then we considered you a "start up." As you can imagine, banks aren't typically very fond of start ups. I'm sure it's different at each bank, but in my experience we just wanted to make sure you were experienced and knew what you were doing.

@Taylor Jennings I actually went to high school near Chicago and moved to Noblesville after graduating from Ball State. I hope to make it to the meetup on the 25th, thanks for the info!

@Josh C. Thanks for reaching out. Send me a PM when you have a chance and we can try to work something out!

@Clay Manship Thanks for the welcome! Congratulations on your first deal and best of luck in the future. I'll get in touch in the near future and hopefully we can get together.

@Al Williamson I'm keeping my eyes open for a possible owner occupied duplex because I think that would be a great place for me to start. Thanks for the advice!

@Brandon Turner Thanks for the welcome! I've enjoyed listening to you on the podcast. Keep it up!

@Shawn Holsapple Thanks so much for all of the recommendations. I'll be in touch shortly after the holidays so we can get together for coffee!

@Mike D'Arrigo Thanks so much for the reply. You can expect to hear from me in the next week or so because I have quite a few questions that you will likely be able to answer.

@Mary B. I appreciate the welcome and advice! I've started to read through some of the resources on here but know that I've only skimmed the surface. I hope your holidays are great as well!

@Christine C. I'll definitely join the group on Meetup and attend any event that I can. Thanks for sharing!!

Hi everyone,

I've spent the past few days scanning BP and am very excited about the community that you all have established. There is plenty of positive and honest advice that seems relevant to all.

I'm a recent college graduate (economics) living in central Indiana and looking to get started with a single family rental or duplex. I work at a bank in Indianapolis as a commercial credit analyst (investment real estate / commercial & industrial) and have started to familiarize myself with the area because I have a strong belief that people should only invest in what they know.

If any experienced investors in the area would like to meet up for a drink or coffee I would love to pick your brain and see if I can help out in any way. I'd also appreciate any book recommendations or other resources that anyone has found to be helpful.

Thanks for allowing me to introduce myself. I look forward to contributing to the forums in the future.

Best,

Robert Anderson