All Forum Posts by: Todd Harvey

@K T., I got a pretty good deal on the current 1st, and hope to draw down a pretty penny for foundation work and pay it off in a few years.

@Calvin Kwan., I would love his contact!

Todd

I have substantial equity in my two rental properties and very little equity in the property that I reside in.

I'm looking to borrow against the equity in my investment properties but don't seem to be able to find people who do second loans on non-owner occupied houses (2-4 plexes).

Does anybody know anybody who does 2nd loans at reasonable rates for properties that are rental properties that have significant cash flow and significant equity.  My credit is also good.

Todd

I have only made tenant mistakes when I made exceptions to my rule because I felt bad. If you feel bad for him, write him a check or have a beer with him. But dont expose your investment to unnecessary liabilities. The main function of my application is to weed people with bks and evictions out. You can always say, "I wish you the best, but my business partnerbis conservative and not flexible on these things."

is there a way to correct bad typos?

The only reason you should pay down student loan debt is interfears with your about to get real-estate debt. That is my situation now because the amortization schedules make your DTI ratio suck. If you are able to do deals (get loans on properties that make sense), then do it and keep the student loans. But, my situation, financially, it makes sense to pay off the sudent loans so i can get more real estate debt to make investments that garner more than 6 percent. Follow the numbers, and yes, like others have mentioned, keep a reserve so you won't panic, when **** DOES happen. Todd

i think incan refinance, but am looking for people who do nonowner helocs for 4plexes. ive called the community bank and wells fargo and they dont.

In bay area, Im equity rich, cashflow rich (and finally able to show 2 strong years of casflow from self employed income and rental income on tax returns), decent credit;

Ive a chapter 7 from march, 2012.

Ive a 4 plex and a 2 plex in the bay area i want to pull cash out of. (Im a renter with my family).

What are my (best) non owner refinancing options. Ideally, i want a HELOC, so i can pull money out to diversify in other markets. 2nd choice would be 2nd loans.

I'm hoping to be able to either get a cash withdraw refinance or a HELOC so I can buy another building, but I have crappy DTI ratio if all my improvements are held against me.

I just spent ~70k in improvements for my 4-plex that I live in.

Based on my professional earned income and 75% of the rental value, it looks like I can qualify for a loan to refinance the place if I spent nothing on improving the property this last year.  However, since a significant portion of the income went into improvements on the property (hardwood floor, paint, new decks, new kitchen, etc), my fear is that when I turn in my tax return, it will look like I make less money because of the improvements.  

Do I have to wait a couple more years and not put money into my properties to be able to show 2 years of higher income so I can have a good enough DTI to get a loan?

When looking at income, are improvements subtracted from your income like maintenance?

Thanks so much!

Todd Harvey

Berkeley, California

In general, How is DTI measured in relation to discharged debts still being paid but not reaffirmed?

Details:

4 years post chapter 7 bankruptcy, how is discharged loan debt that the home owner is still paying looked at in looking at DTI in looking at refinancing?

presume 5 properties that have significant equity and cashflow, but the debts were not reaffirmed in bankruptcy, but they have been paid regularly and are doing great now. 

The main property is now worth 1.2M, with about 400k in discharged debt being paid monthly. 4 plex, owner occupied.

The other 4 properties combined have 700k value with 500k in debt.

Does one need to show the other discharged debts when applying for fha or conventional refinance of the main property?

The properties cashflow well.

4 properties  ( not being refinanced  ) also have discharged debt that was not reaffirmed but is still being paid.

If those loans are included in the debt when measuring DTI, then the DTI is over 50 percent.

Does discharged debt mean I can pay it but do not have to share it with banks while applying for loans because it is discharged?  (Even if owner is choosing to pay discharged debt because it makes sense)?