All Forum Posts by: Sean Autry

This is a total newbie question- so I apologize in advance. Do property management companies typically keep the books on a property for their client (and deliver a balance sheet, income statement, etc)? Or do they just handle the day to day property management (collecting rents, maintenance requests, etc) and leave the accounting/bookkeeping up to the owner/client? My assumption is the prop manager is also doing the accounting, but just trying to confirm here.

I think I answered this exact question in another forum, but you shouldn't need to worry about DTI (debt to income ratio) if you're using the BRRR strategy. Under that's strategy I'm assuming you're cash flowing which means your rents outpace your debt service commitments. So your DTI should be unaffected, and (if the return on the property is good enough) your DTI might actually improve as you acquire more.

I should make sure the point is clear that they were willing to include the rents on the property I was buying, which means- no seasoning period. This was on a conventional loan that would be sold to one of the agencies, so it's even in the conservative end of the spectrum.

I recently bought a 100% occupied multi family property using conventional financing. I didn't need to, but they would have used up to ~75% of the rental income toward the DTI calc as long as I had long term (a year) lease agreements in place for each of the rents I wanted to include. Again- I didn't need to include it, so I don't know what other requirements might have come out of the woodworks, but that was my experience.

If you are renting these properties out for a profit, then your debt to income ratio (DTI) shouldn't actually increase too much. I think lenders are typically willing to recognize something like ~75% of your rental income if you have lease agreements in place. So, assuming you're renting them out for a profit, the accumulation of debt on those properties shouldn't have a big impact on DTI.

I should mention the property values is at or above $202,000 and I'm looking for $30,000.

Hi All- I'm looking for a 2nd mortgage on a rental property I have in CA. Current LTV is 75%, I'm looking for a loan up to 90%. Fixed rate preferred, open to variable rates if that's the only option. Credit is excellent, DTI won't be an issue either. Thank you.

Thanks for the input Scott Hollister , and for the pointer on the partner deal. I might consider that if I go out of state, but tweak it a bit where I'm coming in with some of the cash as well, but leveraging his/her local presence.... Though my main goal is to buy and hold; Ive heard having a partner in a buy and hold deal can be tough. I'm curious- how far along are you in your investing career. Able to make it full time yet?

Hi All- looking for some input here. I recently closed on my first rental property in Apple Valley, CA. It meets the 1% rule, it should cash flow nicely (for CA), it'll produce a great return- I'm very happy about it. HOWEVER, now that my first deal is done I realize that saving up a chunk of capital before each deal is a very slow way to build a portfolio. My goal is to be a full time investor. I find it much more interesting and exciting than my day job in corporate finance. Accordingly- I need to do more creative deals. The BRRR strategy is the most attractive to me, but I'm thinking it would have to be out of state given CA prices. My questions: who here has had success implementing BRRR from afar? Can you share your experiences? Pitfalls to avoid? Tips for success? are there any other cash flow strategies that I'm not considering that'll allow for limited initial capital or the recycling of the same capital? Thank you in advance for your input.

Hi All- I'm wondering if any of you agents out there have a good home inspector you can refer me. I have a property in escrow in Apple Valley, CA (near Victorville). I need to have the property inspected, but I don't have any contacts out there. Can anyone help? Thank you!