patrick.net

you sure you can get $1900/month for a place that costs $235k?

HOA fees?

I don't blame you for wanting to buy it if you can get that kind of rent.

I'm no expert, but my understanding is that the bank will be likely to discount or not count the rental income unless you have some track record. Even without the income, though, your debt to income is probably within range.

I do know someone who did exactly this (3 properties over the course of 4-5 years), but had some difficulty qualifying for the 3rd property.

Here's the property: http://www.redfin.com/CA/San-Jose/20-Ryland-Park-Dr-95110/unit-306/home/559072

Rents in that area on Craigslist for a loft are around $1900. The HOA dues are $300 a month.

cksv says

Can I get a standard mortgage on both of these properties

Yes

cksv says

My income is $103,000/year. Will I qualify for both of these mortgages when the rental income is added?

Very close to underwriter's standard depending on downpayment, depends where rates are later. If rates go up, it may be problamatic but I say yes

cksv says

Ok now that I've removed that silly 3 post lock.

Sorry about that, but it's necessary to keep spammers from posting.

Think I should switch to some other way, like asking people a really simple math problem?

cksv says

Here's the property: http://www.redfin.com/CA/San-Jose/20-Ryland-Park-Dr-95110/unit-306/home/559072

Rents in that area on Craigslist for a loft are around $1900. The HOA dues are $300 a month.

let me tell you something. You dont want that property. Zoom out a bit and look at where it is in proximity to the airport. With the amount of noise It would be very difficult to keep it rented.

besides that I think you have the right idea. stick to areas that you know well (like within 1-2 blocks) and I think your plan may work.

Talk to a loan agent and they will let you know if you qualify.

I think the reason I was able to buy two more rentals this year was because they were both cash flow positive and I have over 100k in savings.

cksv says

Ok now that I've removed that silly 3 post lock.

Sorry about that, but it's necessary to keep spammers from posting.

Think I should switch to some other way, like asking people a really simple math problem?

No, I'm sorry for posting nonsense replies in random threads to overcome the lock :-). Some sort of question to validate that they are human would definitely be better.

Think I should switch to some other way, like asking people a really simple math problem?

Perhaps captcha for the first few posts? It can be sort of annoying but for most people it won't be the first time they see it.

Yeah Patrick, captcha will probably suffice. And you won't get people putting in lame comments just to get themselves over the 3 limit.

cksv says

My income is $103,000/year. Will I qualify for both of these mortgages when the rental income is added?

I hope not. This is a big reason why the country is so screwed, all these awful loans.

If I were a bank it'd be 20% down, and the loan would be no more than 2x your current salary, for a job you've had 3+ years. More than 2x your salary would require more money down. Student/car loans and a credit check would be factored in of course. It wouldn't be perfect but there has to be some standards than the free money that's being shelled out right now.

Condo 1 you want to buy with 5% down? That would mean you'd have to get an FHA mortgage

FHA requires you to have the home as your primary residence for at least 2 years. Oh and you cant finance a condo through FHA. Also if you plan to rent this out the lender will require a bigger down payment, minimum of 20-30%. You'll also need to have special insurance for the unit.

Talk to a mortgage broker, I'm 99% sure they won't fund your plans with such a low downplayment. What you'll need to end up doing is putting 20-30% into condo 1 to meet the rental requirement, and do 5% on your primary residence.

Captcha sucks, this method is obviously working. Plus it gets people to contribute to the threads besides just posting a post, and never checking back.
If someone doesn't have it together enough to reply to three threads at Patnet, then why should we reply to their posts?

That being said, I'm watching this thread because I would like to buy either a rental. Or a home east of US1, and turn this place back into a 3/1 and 1/1 and rent it out.

Remington says

Oh and you cant finance a condo through FHA.

You are giving out bogus information. You shouldn't give advice on subjects that you have no knowledge of. FHA loans are available for condo and townhouses, and in fact, about 40% of all condos are FHA financed. For the complex to be eligible for FHA financing the complex must be FHA certified. I own several SFH and condo rentals, most of them paid off and unemcumbered. The condos that I hold are in upscale neighborhoods in coastal CA and only one of the complexes is certified for FHA. I am on the board of a few of them and I, along with most of the other owners in these common interest developments don't want to be FHA certified because we want our owners/buyers to have conventional loans or pay cash. We don't want owners with small down payments buying in.

cksv says

Will I qualify for both of these mortgages when the rental income is added?

Most rental income requires 2 years proof of receipt before they'll consider it stable income. You can't move out in August, rent it out, and show up in Sept looking for a new mortgage, showing them one month's rent check deposited in your account, and go, "See? I make this every month in rent too."

"I am on the board of a few of them and I, along with most of the other owners in these common interest developments don't want to be FHA certified because we want our owners/buyers to have conventional loans or pay cash. We don't want owners with small down payments buying in."

That's because getting a condo FHA certified is a nightmare, it has to do with how easily you can move the units, not the downpayment requirements of the buyers. 10 years ago no one went FHA (the actually had standards for underwriting) and getting a condo on the FHA approved list is a pain in the ASS. There was no incetive to do so when 1 in 20 loans was FHA. Now that FHA is the primary means of financing, I imagine that will change.

lurking says

I am on the board of a few of them and I, along with most of the other owners in these common interest developments don't want to be FHA certified because we want our owners/buyers to have conventional loans or pay cash. We don't want owners with small down payments buying in.

So what you're saying is I'm correct in my statement that it can't be done. However granted its not because of my incorrect knowledge, but because of people like you and your crownies are intentionally trying to lock out potential owners?

You sound like a typical HOA self-entitled jackass.

Remington says

lurking says

I am on the board of a few of them and I, along with most of the other owners in these common interest developments don't want to be FHA certified because we want our owners/buyers to have conventional loans or pay cash. We don't want owners with small down payments buying in.

So what you're saying is I'm correct in my statement that it can't be done. However granted its not because of my incorrect knowledge, but because of people like you and your crownies are intentionally trying to lock out potential owners?

You sound like a typical HOA self-entitled jackass.

Well whatever the reason, anything that gets people away from small down payments is fine by me. Less investors would mean more affordable homes.

In my opinion, why would anyone want to buy any property right now? Whether you can qualify or not? Here is a quote and a link: "No one can accuse the Fed of not trying hard enough. To reverse the biggest housing market collapse since the 1930s, the Fed embarked on an unprecedented program of buying up hundreds of billions of dollars' worth of mortgage bonds and driving mortgage rates to record lows. Despite that effort, private investors remain leery of putting up cash to back mortgages: roughly nine of our 10 new loans are still backed by the government." The Link: http://bottomline.msnbc.msn.com/_news/2011/12/13/9420052-fed-battling-economic-forces-beyond-its-control What is this saying? It's saying its a manipulated market to me. Save your money, buy 4 properties later. Not to mention the 29 lockboxes for a complex of 172 or 16.8% with only 4 currently on the market. manipulated manipulated manipulated.