All Forum Posts by: Rachel Pivonka

I spoke with his current landlord and his current lease is up in about two weeks and he has never payed late.

Marcus Johnson we asked him his gross monthly income. We got most of our application from one of Brandon Turners file's and that's what was on there. Mindy Jensen his words were currently selling it.

Penny Clark thanks! The HOA requires a 6 month lease minimum. His credit looks good at a glance, just got smart move notification. Also, we have at least 4 others scheduled to see this property this week so I think it will rent quick. This potential tenant said he can start lease in less than a couple weeks and the other people scheduled to look at it are looking for somewhere to start lease in 5 weeks.

Keino Chichester so you are saying I need to take the total income and subtract the total debt and that number needs to be at least three times the tenants income? Thanks!

Zillow shows the home he owns was purchased for $146,000.

We have listed our very first rental property to rent and our first perspective tenant says he is separated from his wife and they are trying to sell their house which they bought in 2008. My concern is that I'm sure he is listed on the mortgage, which we will see when we do his credit report, but concerned because he will be responsible for his mortgage and for paying rent at our place. I am guessing his wife is living in the house they both own. His income is $1000 over the three times the monthly rent rule which I guess would help cover the mortgage on his house. If all the other requirements check out, credit, references, eviction check, employment verification, background. Should I worry about him owning this house with his wife who he is separated from? Also to note he has been living at an apartment for the last six months I'm guessing while he was separated from his wife. Another strange thing is I googled his address of this house and on Zillow and all other websites it says off market. Any advice is appreciated! This is our first rental. Thanks!!

No it was a local bank

We just used two different portfolio lenders. One to get a foreclosed house to rehab and rent and the other to get a condo. I was so surprised how easy it was to get portfolio loans as beginners. We did have to fill out a personal finance statement. I'm sure our income and credit had a lot to do with but I was still surprised We couldn't use Freddie/ Fannie because the house was not in livable condition and the condo did not pass the strict requirements. We put 20% down. One is a 20 year term the other 25. Good luck!

Look up a loan calculator and choose an interest only setting. If you get a HELOC (home equity line of credit) they usually give you 10 years for a "draw period" where you only pay interest. Then they amortize the loan over 20 years. We are planning to pay ours back before then though.

Are you planning on keeping these as rentals or selling them? We just used our HELOC to purchase a fixer upper to rehab and rent and we will be refinancing it in 6 months to get most of the money we put into it back. I think it's a great idea. A couple tips.... When looking for lenders on the property make sure to ask specifically about any prepayment penalties. One of the local banks here surprised us a few days before closing and said we have a prepayment penalty for 5 years. We had assumed there was none based on our first conversation about what we were looking for in a loan. There is no prepayment penalty if we refi with them though. Thankfully I think they have agreed to refinance at 80% LTV in 6 months. But we are stuck with a 20 year term because this bank is super conservative and won't do longer terms for rental properties. Also don't forget to factor in the payments on the HELOC when calculating monthly expenses to determine cash flow. Good luck finding a deal!