Sch E - 2019 and 2020 Details
Sch E - 2019 and 2020 Details
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Sch E - 605 Wyeth St - SFD - Owned by Bryan Canary and Daniel M.
NO MORTGAGE
This property was purchased in cash at the bottom in 2012 because it was rentable and it made a good shell for a rehab when the market rebounded. In the middle of 2019 we decided to put 5k of upgrades into it as opposed to fully renovating and \ in August 2019 we got very good graduate school tenants for 750/mo that have been in there for 18 months. It would be nice if the UW would use current rent which has been steady for 18 months and op expenses, but if they feel need to use 75% of instead it's very minor difference.
Sch E - 621 Wyeth St - SFD - Owned by Bryan Canary and Holly Bowers
US ALLIANCE HELOC in 1st
The Second floor hallway is a grated catwalk. It was my trademark.
Current lease is 1800 and has been that for past 3 years with same tenants.
The PI portion of the house expense dropped from 1250 in prior years to ZERO in Feb 2021 when Holly and I partnered during refi into a HELOC in first and she paid the balance down to to zero with cash from the proceeds of the sale or her rental and cash withdrawn from retirement in expectation of buying a home.
The operational expense history for the past two years is identical and can be seen on my tax returns.
This home now produces $1400/month in NOI after all housing and operational expenses. We do NOT need to pull any money from this HELOC for the down payment thus PI should be zero for calculations. Applying a 75% rental factor is not logical based on my 14 year rental income and operating expense history with this property but we' 'll go along with whatever UW decides.
Sch E - 627 S. Paca St - SFD - Owned by Bryan Canary
1st - SPECIALIZE SERVICING
2ND - PNC MORTGAGE
Please see App Explanation docs and About page for more information.
Questions...
627 S. Paca St ?? -- What value will be used for Rent ? I have leases for these and can show payment history since September on leases that is very strong. Using 75% of current leases would be ideal but I can imagine this might be a toss up or a no go with that route. I can imagine doing an appraisal with a rent schedule may be required and then 75% on that, as if the home was being purchased as an investment.
627 S. Paca St ?? We can consider this as a refi target before or after our purchase ?-- >> Shane, I should have a sales comp for this property this friday at 450k when the home I rehabbed next to this resells. I currently owe 280k on this. I have a $1000 principal payment on it along with a small second mortgage too. A cash out refi on this could drop my monthly payment by $500 or more AND cash out $50k simultaneously.
Sch E - 1707 N; Calvert St - MFD - 2 units - Owned by Bryan Canary and Jody M.
1st - CALIBER LOAN (IN MY PARTNERS NAME ONLY, not on my credit report)
Gross rents from two leases currently total $3850/mo.
There is a 10% decrease from 2019 to 2020 rents.
Both units turned over in 2020. The had been rented for 3 and 4 years with no turnover prior. That lead to about 2 weeks vacancy for each unit.
We also dropped the rental rates for the units slightly when advertising for new tenants. We had raised them over the years and we were at the higher end of the market. With COVID raging we wanted to be sure we had a good selection of tenants to choose from quickly to minimize any stress and turnover vacancy.
This has been operationally stable with no major changes in housing or op expenses..
It would seem using op history would be ideal but applying 75% rental facto can also work..
My partner in this is a professional artist and we decided to stage it with cardboard furniture when we completed it in 2009 because people were having trouble envisioning the space.
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