All Forum Posts by: Stewart Battle

@Maurice D. What would be involved in that? Would I have them sign a separate rental contract? I also had the thought of having them sign a pay-per-day or per-week agreement after closing, which I think would be about the same.

Keeping majority of the funds in escrow is also a good idea.

Hi everyone, I wanted to ask for some advice about a property I’m in the process of closing on, hopefully in the next week or two. We signed a purchase agreement last week, got a great deal from a somewhat distressed seller, but the seller is claiming they need help putting down a security deposit and/or first months rent to move out to a new place.

Two options as I see it:

Should we get them some cash (and put that into an addendum to the purchase agreement to be sent to the title company) so they can proceed to move out? And therefore wait to close until they’re fully out?

Or should we try and close immediately so the seller has the cash to move out, and put together an addendum that specifies when they have to be out of the house?

Anybody have any advice or experience for this kind of situation?

Great, thanks for the advice

@Caroline Gerardo Will do! I’ll give you a call tomorrow, thanks

@Julio Gonzalez yes, it’s been immensely helpful. Thank you.

@Caroline Gerardo Thank you for the advice. I don't have anything yet, but am getting ready and had heard getting pre-approved for the refinance was a good idea. It seems like you're saying that if rental income is 125% of PITI then some lenders will approve that? I imagine I would need to have that in hand as opposed to a pre-approval letter in this case? Thanks

@Caroline Gerardo Yes, between savings and a loan from a family member I am planning to buy with cash at a reduced price, rehab it, then go for a refi after renting it, all of which I can cover but obviously would like to try and pull the cash back out at the end.

As for my income, without going into all the numbers, I do get 1099’s, and unfortunately did write off a lot during 2020 (might be better for this last year, but I would need to check). When I spoke to my previous lender a while back about a second mortgage he thought we would be pushing it too much with our current income.

So I guess my questions would be: does this change much when you account for rental income (increasing your income) to qualify for a new conventional mortgage? And if not, what other ways around having too small a verifiable income are there, say with non-convential loans?

Hi everyone,

I'm new to Bigger Pockets, but am preparing to jump in with my first BRRR soon and would like to get something lined up with a lender or two before I take any further steps. I'm in the metro Detroit area - does anyone have any suggestions/recommendations?

The 6-month seasoning period is a little bit of an issue for me, as I don’t have enough capital to do more than one deal at a time before getting a refi, but seeing as it’s my first attempt I may just take it slow and not try anything too complicated. With that said, I still might be interested in a non-conventional loan if everything goes successfully and I want to pull my cash out and repeat!

I’m also not sure about my income verifications. I have a mortgage on my house currently, but my work is not regular and I get 1099’s, so I don’t think I’ll qualify for another conventional mortgage as easily as the first. So I’d be interested to hear suggestions about lenders and options given that challenge as well. I’d like to avoid getting a co-signer, like from a parent or someone, if possible.

Thanks for any advice!