Re-fi trouble Refinance in Kansas City MO

[Seth Rouch]

Hi Everyone,

Last year I purchased a turnkey condo as a rental in Kansas City, Missouri. (I live in Colorado.)  The BRRR @Brandon Turner talks about on pod casts ... well I'm having trouble with last 2 "RR".  It's been a year now. Title is seasoned etc, tenant in place, cash flowing well, and I have tried 10 banks, large and small, in Kansas City to try to re-fi this property. Some references from my current Hard Money Loan and some from my agent in KC. I'm being told "you're out of state",  "the condo is 'not warrantable'", "you don't have enough assets" (which didn't make sense as I own another KC property outright worth over $100k and condo is only worth about $65k, in addition 3 houses in colorado with %20 equity or more, not to mention others etc...)  Anyway, I wanted to reach out and see if anyone has run into this same thing before. It's been quite frustrating and having $ tied up that I would like to re-invest is irritating to say the least. 

I'm open to suggestions and connections.

Thanks in advance!

P.S. Yes, I tagged you in this Brandon just to see if you read it.  ; )  haha  

[Shaun Weekes]

@Seth Rouch

I picked up on 3 things in your post.

Out of state (this doesn't matter)

Assets (I will get deeper into this for you)

Non Warrantable (This is when the HOA or all the units are 50% or more rentals)

The rule for assets just changed on July 26th and instead of requiring 6 months of reserves for all investment mortgage payments. (say all your Investment Property payments total 1K... You’ll need 6K in reserves) Now you just need a percentage of your total loan amounts.

Example:

If you owe 500k in loans and you own 7 to 10 homes, you need 6% for reserves or 30K

5 thru 7 is 4% = 20K

1 thru 4 is 2% = 10K

And you need to show liquid assets like money in the bank, 401K, Stocks, Bonds Etc.

Your biggest issue is going to be the non-warrantable issue. If the H.O.A. is truly 50% or more renters, then you'll have to get a portfolio loan. This will be a loan that isn't sold to Fannie or Freddie.

You need to contact your H.O.A. and ask them if this is the case. They might charge you for this information but it's crucial if you want to Refinance.

I hope this helps and have a great day Sir.