Pete T, I'm guessing you are referencing my original post. I'm NOT worried about paying off the house that I'm upside down on because it is class flowing. There is no equity in it because I'm upside down on it, another reason to NOT worry about paying it off.

There are a lot of reasons you might not be able to refi- that is something you want to have ideas about as well as other exit strategies in advance. Why are you worried about the value or paying it off if the CF is working? Do you have enough equity to do anything with?

I'm really interested in doing a flip to build some capital for another hold property. I'm looking more and more at fannie mae homepath and freddie mac homestep properties as possibles. Your thought?

Thanks for the help guys. Ive heard that HMLs are not really the way to go for buy and holds and thats why I would refi as soon as possible. What would be some reasons to not be able to refi?

HMLs and rental properties really don't work well. The money is too expensive. Think of oil and water. Good luck with it!

Do you have cash reserves for your existing properties? Are you going to be able to come up with the down payment for the HML? I agree with the HML to refi route but what if you cant refi for some reason, Are you buying a rehab to rental?

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Updated over 10 years ago on 08/04/2014. Most recent reply

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Brandon ForshawPoster

Real Estate Investor
Satellite Beach, FL

Real Estate Deal Analysis & Advice

Next step?

Brandon ForshawPoster

Real Estate Investor
Satellite Beach, FL

Posted July 29, 2014 19:25

So, here's my situation. I've got 2 rentals in central FL. Each is cash flowing about $250/month. I'm upside down on rental #1 and never plan to pay it off due to its value, but it's cash flowing so I'm ok with it. Rental #2 has a little equity but usable right now. I'd like to acquire another property by the end of the year in the $150k price point. In your expert opinions, what's my next step? I like the HML to refi with equity route. Your thoughts?

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