All Forum Posts by: William D.

@Eric James

What if my income is tied up in other properties? Would I qualify if the market rent shows it covers the mortgage?

If 75% of the market rent covers the mortgage do I still need to use my income to qualify for the mortgage?

Using round numbers for ease of explanation.

Mortgage: $1000

Market rent: $1350

Bank will use 75% of the market rent as income to qualify for the mortgage.

75% of $1350 is $1012, which covers the mortgage (PITI).

Will I still need to have X amount of income to qualify even though the mortgage will be covered with the rental income?

BP! 

Looking to connect with folks in the Melbourne/Palm Bay area in Florida. Business partners and I looking to invest in the area. Need to know where A and B areas are. 

What's up BP!

What are your thoughts on using a HELOC on 1 of my investment properties to purchase another investment property? I'm not even sure if that's allowed. The new investment property rental income would cover the mortgage and easily cover the HELOC.

@Sarah Brown

Awesome

I was told by my loan processor I can obtain a tax receipt from my original loan company that shows I paid some type of taxes when i first purchased the property, so I don't have to pay again. Is this true and what is this called?

I've been looking at properties in both high rental and high ownership areas in a particular city. In your experience what area is better to invest in?

I will assume areas with a higher number of rentals will be more competitive and have more C and D tenants than areas with higher number of owner occupied homes..

For example, purchasing a duplex on a block or area where they have a lot of duplexes. Is that a smart area to invest in? Or am I better off finding an area where they have fewer duplexes/multi families?

@Basit Siddiqi

Thanks. What’s the ratio? Not more than 45% of income? Basically it’s what what you pay per month and what you owe per month.

This post might be a little scatter brained but here I go. I own 2 condos in NYC, live in one and rent the other and plan on buying more properties. I can come up with the down payments and capital but I only make $100k per year. It's the income issue I am having to qualify. What are some ways I can keep qualifying for new mortgages in regards to rental property income? 

For example, my mortgage on rental property 1 is $1000 and the rental income is $1000, so when qualifying the banks will take 70% ($700) and count that as income, so I take a hit for $300. Now, what if the rental income is $1430? 70% of $1430 is $1001. So the banks would see it as me breaking even? 

@Corbin Jones Seems like it. Living in NYC you'd be hard pressed to find a property where the rental income would cover the mortgage with a correctly appraised value. Need to check the sticks for those properties.