Why So Many Cash Offers?

[gn]

[quote=SD Realtor]Given the underwriting standards of today, each additional home the guy purchases makes it harder and harder to get the next home.

In my opinion after the second or third home it doesnt work.
[/quote]

Is this because, immediately after buying & renting out the house, lenders disregard the rental income ?

Does the investor have to wait 6 months before the lenders consider the rent as income ?

[ocrenter]

[quote=CA renter]Bingo, ocrenter! And this is why high rates are going to hurt the housing market even more than most people expect. Rates have been artificially inflated for so long, that fixed-income investors (and others with large cash positions) are forced to get into different markets, and the housing market is one of the greatest beneficiaries of the low rates, IMHO.[/quote]

which is why we are not going to see higher rates for the foreseeable future.

every time they try, housing would start crashing, and they’ll drop the rate again.

given the choice of protecting against inflation vs housing, they’ll pick housing and let the dollar tank.

[ocrenter]

[quote=CA renter]Bingo, ocrenter! And this is why high rates are going to hurt the housing market even more than most people expect. Rates have been artificially inflated for so long, that fixed-income investors (and others with large cash positions) are forced to get into different markets, and the housing market is one of the greatest beneficiaries of the low rates, IMHO.[/quote]

which is why we are not going to see higher rates for the foreseeable future.

every time they try, housing would start crashing, and they’ll drop the rate again.

given the choice of protecting against inflation vs housing, they’ll pick housing and let the dollar tank.

[ocrenter]

[quote=CA renter]Bingo, ocrenter! And this is why high rates are going to hurt the housing market even more than most people expect. Rates have been artificially inflated for so long, that fixed-income investors (and others with large cash positions) are forced to get into different markets, and the housing market is one of the greatest beneficiaries of the low rates, IMHO.[/quote]

which is why we are not going to see higher rates for the foreseeable future.

every time they try, housing would start crashing, and they’ll drop the rate again.

given the choice of protecting against inflation vs housing, they’ll pick housing and let the dollar tank.

[ocrenter]

[quote=CA renter]Bingo, ocrenter! And this is why high rates are going to hurt the housing market even more than most people expect. Rates have been artificially inflated for so long, that fixed-income investors (and others with large cash positions) are forced to get into different markets, and the housing market is one of the greatest beneficiaries of the low rates, IMHO.[/quote]

which is why we are not going to see higher rates for the foreseeable future.

every time they try, housing would start crashing, and they’ll drop the rate again.

given the choice of protecting against inflation vs housing, they’ll pick housing and let the dollar tank.

[ocrenter]

[quote=CA renter]Bingo, ocrenter! And this is why high rates are going to hurt the housing market even more than most people expect. Rates have been artificially inflated for so long, that fixed-income investors (and others with large cash positions) are forced to get into different markets, and the housing market is one of the greatest beneficiaries of the low rates, IMHO.[/quote]

which is why we are not going to see higher rates for the foreseeable future.

every time they try, housing would start crashing, and they’ll drop the rate again.

given the choice of protecting against inflation vs housing, they’ll pick housing and let the dollar tank.

[paramount]

These cash deals are the result of a recycled plan coming together – get the average person in over their heads, then go in for the land grab at discount prices.

[paramount]

These cash deals are the result of a recycled plan coming together – get the average person in over their heads, then go in for the land grab at discount prices.

[paramount]

These cash deals are the result of a recycled plan coming together – get the average person in over their heads, then go in for the land grab at discount prices.

[paramount]

These cash deals are the result of a recycled plan coming together – get the average person in over their heads, then go in for the land grab at discount prices.

[paramount]

These cash deals are the result of a recycled plan coming together – get the average person in over their heads, then go in for the land grab at discount prices.

[SD Realtor]

gn –

When you go to get loans your rentals are counted and your rental income is not credited at 100%. All of your expenses are. So basically, unless you have some very strong cash flow, each additional home you get will reduce your ratios.

The seasoning you mentioned may also be considered.

HLS can chime in here to give more background on how lenders treat rental income and expenses for properties you own as you accumulate more of them.

hawk – can you query this person and ask him if he moves ownership of the properties around as he gets them, then does the cash out refi?

[SD Realtor]

gn –

When you go to get loans your rentals are counted and your rental income is not credited at 100%. All of your expenses are. So basically, unless you have some very strong cash flow, each additional home you get will reduce your ratios.

The seasoning you mentioned may also be considered.

HLS can chime in here to give more background on how lenders treat rental income and expenses for properties you own as you accumulate more of them.

hawk – can you query this person and ask him if he moves ownership of the properties around as he gets them, then does the cash out refi?

[SD Realtor]

gn –

When you go to get loans your rentals are counted and your rental income is not credited at 100%. All of your expenses are. So basically, unless you have some very strong cash flow, each additional home you get will reduce your ratios.

The seasoning you mentioned may also be considered.

HLS can chime in here to give more background on how lenders treat rental income and expenses for properties you own as you accumulate more of them.

hawk – can you query this person and ask him if he moves ownership of the properties around as he gets them, then does the cash out refi?

[SD Realtor]

gn –

When you go to get loans your rentals are counted and your rental income is not credited at 100%. All of your expenses are. So basically, unless you have some very strong cash flow, each additional home you get will reduce your ratios.

The seasoning you mentioned may also be considered.

HLS can chime in here to give more background on how lenders treat rental income and expenses for properties you own as you accumulate more of them.

hawk – can you query this person and ask him if he moves ownership of the properties around as he gets them, then does the cash out refi?

[Author]

Posts