All Forum Posts by: Tom Server

I just researched, cash out refi

 Well thats what im trying to find out.. The property that I purchased its going to be my primary resident for a few years.. Would that be a refi or a second mortage ?

 Thanks James, yeah i know I have pay the credit cards off first.. Im sending $600 for min payments and 350 is in interest between 3 cards. 

The 401k loan of 50k was to pay for half of the rehab property. 

The rehab was 100k, and I put an 20k into , 10k of it is part of the credit card debt. I can sell the property for 200k.

 Mike, thanks for your input.

 i dont know off top of the head, but they are high , no promotions 

I'm seeking guidance on consolidating my current debts, as I've recently made several property purchases that have resulted in financial strain. I acquired a rehab property for $100k, funding it with $50k in cash and borrowing $50k from my 401k, which requires a monthly repayment of approximately $1,000 over five years. This property is currently valued at around $200k. 

Additionally, I hold $25k in credit card debt, with minimum payments totaling about $600 per month.

Furthermore, I own a rental investment property with a remaining mortgage balance of $170k at a 7.6% interest rate, while the property itself is valued at $275k. Mortage is around $1700 and rent roll is $3,500.

I'm particularly concerned that the 401k loan repayment is significantly impacting my income. I’m interested in exploring options to consolidate my debts, including potentially refinancing both properties to improve my financial position. Specifically, I'm considering whether it would be feasible to secure a loan for approximately $245k to pay off the credit card debt, the 401k loan, and the existing mortgage on my rental property.

I would appreciate any insights or strategies that could help me effectively manage and streamline my financial obligations. Thank you!

So, I ended up increasing there rent from 950 to 1100... contract signed, took effect 10/1 .. section 8 already paid a portion of it $1050, she owes remaing $50... anyway.. after they signed the contract a week later they sent me an email giving 60 day notice and are planning on moving out 12/1   ughhh

I decided to raise the Section 8 rent from $950 to $1,200 starting in October. This new amount is $100 below the (FMR). However, I recently learned that my tenant is on disability and receiving $750 per month. While on disability, section 8 adjusted his rent and he is responsible for $850 of the rent, with Section 8 covering $100. Prior to the disability payments, section 8 covered $900 of the rent and tenant paid $50

My initial goal was to increase the rent to $1,200 assuming section 8 was paying.  If not section 8, I would make the rent $1050 for a normal paying tenant.

Now, the tenant is upset about the large increase cause I thought sec 8 was paying it. He will be on disability for another 3 or 4 months, with him being responsible for a majority of the rent. The $1200 a month increase would take effect while he is on disabilty and he will likely be responsible most of the $1200 while on disability.

 Now the question is , when his disability is over... does the full section 8 come back or will he be responsible for the rent.. I have to make a contract.. but do i make it $1200 have the tennat deal with the rent for time he is on disability and then assuming full section 8 will return at 1200.  Or do I raise it to $1050 assuming the tenant is going to now be responsbile for most?

hope this makes sense lol took me a while to write this to try to explain it best

My triplex is currently month to month. I want to raise the rent for each unit.  When raising rents, do you send them the rent increase all at the same time. Or should I do one at a time? 

I have a triplex with one Section 8 tenant. Pays $950

Since I inherited the tenant, and the prior owner never raised the rent of section 8.

When I emailed DCA agent with the increase, I told her i wanted to raise it closer to the HUD FMR. So I wanted to raise it to $1200, she responded with "that's a lot" I asked her what the FMR for a 1 bd she responded $1316. I am $116 dollars less than what the FMR and no rent control. Why would she respond with "that's a lot" when it's not even at the set standard they assign?

I am new with dealing with DCA. is this a scare tactic to not raise the rents?

She also wanted me to send a rent control log of my other units.

They are 2bd and their rents are $1050.

Am, I going to have an issue increasing the 1 bedroom to 1200 since my 2 bedrooms are paying $1050?

I plan on raising to 2bedrooms to $1200- $1300 down the line.