Another Newbie 😁 Charleston SC

[John Graves]

     What up people’s and mutual, well, whatever you identify as! I’m Johnny. The internet eventually let me here after looking around at property management/investment ideas. 

I purchased my house via FHA and like 6k down (3%ish) about 5 years ago @ 144k total loan 3.625% interest. Fast forward to today and my value is 100k + without rehab. I'm at 129k owed. Pmi forever until I refi.

     It’s an older house. 68 on the bottom and 86 for the 2ed story. 5 bed, 2 bath .47 acre on the lot size. 

      Sooo without going into too much I’m finalizing my divorce. No alamoney, no kids, house is mine (already signed agreement). Quit drinking about a year ago and decided to get my **** in gear. It’s going well.

      Here’s my rough plan, just seeing if there’s anything I’m overlooking or there’s a better way to go about it. 

HELOC for 30-40k. Rehab the house, probably cost around 20 total after the roof which Has to be done. I can do a lot of the labor myself so 20 is generous but 30 available to be safe.

     I said a heloc of 40k because I have a 10k judgement against the house via my X and some life decisions. So I have to pay that off before I can refi. 

     Rehab is going to be bathrooms, roof, landscaping,  air sealing, windows (little by little diy and budget allowing), fixtures and switches, probably cellulose insulation in attic, odds and ends.

     Do that, reappraisal for somewhere in the 250...mmmaybbee 300 range as I have one of the only real 5 bed houses in the entire area (6 only are Comparable).

Thennnn refi the heloc (which pays off the 10k judgement) into the loan and cash out. Buy another with a large down payment and rehab money. Repeat the BRRRR.

Also I typed this on my phone so forgive any weirdness I didn’t correct

[John Graves]

     I appreciate the warm welcome everyone. I’m hoping this will be less hoops to jump through then I’m thinking... but once I clear out everything and get my house cashout/refi I’ll be in a much more flexible spot @Russ Scheider what’s your niche here in town?

I'm at the dead beginning of this process but I have my plan. I'll try and make this coming month's REI meeting as well. Once everything updates at the end of the month I'll start my heloc search.

     My first attempt with Wells Fargo who holds my mortgage. Was denied for the very issues I’m going to use it to pay for (small judgement for 10k) and it looks like I’m still getting dinged for my xwifes car loan (6k. I’m tired of fighting it on my credit I’m just going to pay it off ASAP with the heloc). Also credit utilization was high but will be under 30% after this months reporting.

     So how should I approach this: 

     Should I try WF again for a lesser amount (30k this time instead of 50k). With a better credit score (20pts up),  Less then 30% utilization now

  Or   Should I try them annnd everyone else in town for my initial loan amount and pick the best one assuming I get a taker?

  Or   Should I try for 30k heloc over the 50k when I do this? 50k is more then I need but the wiggle room is comforting. 10k is gone to the judgement for sure and 6k probably the car loan as well. Which would leave 14k for house rehab/refi.

     Do you have a better suggestion or a preferred lender for someone in my position? 

Initial loan. 145k

Current loan amount: 129k

Current estimate value: 220k

After Repair value: 280k+ 

Wanting to get 30-50k for judgement/car loan/rehab via heloc. 

Refi cash out, roll heloc into loan. Drop PMI

Property cash flows already 

     Thank you for taking the time to read this far and any thoughts are appreciated!