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Updated about 6 years ago on . Most recent reply
2nd Rental House BEFORE & AFTER
Hey Everyone.
So last year, around June i got into Real Estate Investing. As of today i have purchased my 2nd rental property. On this one I actually decided to take pictures of my renovation since the 2nd floor of the house that i got in Northern NJ was in very bad shape from the tenants that were there before.
I ended up renovating everything on the 2nd floor and attic by myself and a few friends. No contractors.
I want to save my money to continue buying real estate and since im pretty handy, i decided for the first few houses to do everything on my own. Yes it takes me 1-3 months to renovate it, but i save a ton of money.
BEFORE:
AFTER:
Let me know if anyone has questions I will gladly answer them. Hopefully i put this in the correct section.
Thanks
Dan
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#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Lender
- Fort Worth, TX
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#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Lender
- Fort Worth, TX
@Joseph Holliway and @Daniel D. Hi, thanks for mentioned me. To answer the question of "how much can I refinance, this would depend on what your loan balance, property type, and what type of loan you are prequalified with. Since you have a loan amount of $264,000 and the house is currently worth $390,000 then your "Loan to Value" (LTV) = 67%. This is important because that means you can do a "cash out" loan on this property. Fannie Mae or Freddie Mac (if you recognize those loan types) will allow you to do a 75% LTV cash out loan on a single family home. So, $292,500. Minus...I don't know....$5k in closing costs?....means you would receive a check for about $23,000. Somewhere close to there. Fannie/Freddie is just one loan type. We use those because they give us the best rate and terms for our loans.
A different loan type I will call "Portfolio" loans....meaning, money that comes from a bank's own portfolio of funds....so from the bank itself....COULD, MAYBE, MIGHT lend up to 80%. Maybe. The reason I say "maybe" is because there are around 15,000 banks in the US. I can't speak for them all. But since their money is their call...it is possible to find one that goes that high. Your rate and term will be very different though. Most commonly these are 20 year adjustable rate mortgages. Since their are so many banks there will be a lot of options. But the Fannie/Freddie loans will have the most "stable" terms...no prepayment penalties, etc.
Anyway, I hope this helps in some way. Feel free to tag me again with any questions. Thanks!