Posted by Mike on April 14, 2004 at 06:58:41:
Ed-
Thanks for the input. That’s one thought I had not considered. My wife’s FICO is actually higher than mine- 770. Id love to get a working line of credit instead of worrying about financing for each rehab I do. Again- thanks for your input.
Losing job but still want to invest - Posted by Mike
Posted by Mike on April 12, 2004 at 24:40:14:
I have a question for some of you out there that do REI full time. I have bought 4 houses over the past 6 months with relative ease. I have a 730 FICO and a job that pays me $120k. But here’s my problem, there is a good chance my company is going to shut its doors. Im not totally concerned as I’d really like to do REI full-time. More specifically, I plan to buy, rehab and either rent or sell. But the problem comes in with income. My wife’s income is about $40k a year. My rentals contribute about $1k a month in free cash flow. Our debt to income right now is excellent- but when/if I lose my job, that will change. Will I have problems getting financing if Im not working? Are there decent programs out there for those with good credit but little income?
Ive done the home equity line, that gives me about $30k to work with. I also have about another $50k that I can borrow at favorable terms. But I’d really like to have more financial flexibity. Any thoughts? Am I being overly concerned?
Re: Losing job but still want to invest - Posted by Ed Moore
Posted by Ed Moore on April 13, 2004 at 17:32:33:
If your credit remains strong, you should still be able to purchase properties at a wholesale rate. But depending on what you’re planning to put down for these new acquisitions, it may be beneficial for your wife to become the primary borrower since she will continue to have regular employment. Assuming her credit is at least close to yours, she can do stated income and still borrow at a high CLTV cheaply.