Please help this newbie

[Faith Kae]

Hello everyone,

i purchased my first duplex last year with a Fha 203k loan. Here are my numbers.

Current loan Amt: $118,000

Mortg: $528 Pmi:82 HI: 90 prop tax:70

rental income-$625 (below market) I just bumped my inherited tenant rent from $525. She is low income but wants to stay forever.

1st question: I have replaced all of the appliances and flooring( 203k) on both sides and painted cabinets. I want to get rid of pmi should I pay down to about 10% of equity and hope the appraisal covers the other 10% or just pay it down to 20%.

2nd question: I have a house emergency fund of $10k. When I move out do I still need to budget for capex and maintenance? It has a new roof and new hvac on both sides (203k loan)

[Chris Tarpey]

1) at least to my knowledge, once you gain the necessary equity (appraisal, loan pay down) you can refi out of FHA into a conventional loan.

I don't believe you can cancel "get rid" of MIP anymore for FHA loans anymore ?! You would be stuck with refinance in order to do so.

https://themortgagereports.com...

2) This one is definitely investor dependent, however I always leave 5% for maintenance, CAPEX, and vacancy. Your essentially paying yourself to hold these funds in a rainy day fund. Better to have it and not need it...