All Forum Posts by: Tom Server

 thank you Chris

 I beg to differ @Nathan Gesner, about the financially disciplined. These were investments, the value of the assest are there, its the liquid that ran short and had to resort to credit cards to fix up the property. The only flaw I had was I purchased the property out right, where I should of applied for a mortage. So instead of interested towards a mortage, im paying interest towards credit cards

I’m looking for advice on the best way to access about $100k to pay off my 401k loan, credit card debt, and cover some rehab costs.
Here the information-  I purchased 2 properties last year, 1 is a rental property that i had for about 8 months, the balance of the mortage is 170k, worth around 300k . The second is a rehab property that I purchased for myself, I purchased it out right for 100k. Money came from 50k of savings and 50k borrowed from a 401k account that I am paying myself back in 5 years with a payment of 1000 a month.  With this property I racked up some credit card debt, around 20k and I need another 20k to pay contractors/supplies. The property will be worth 220 when complete. I’m considering doing a cash-out refinance, not sure what the best options is , to use the rental property or the rehab property. Dont know where to start any suggestions will be great thank you

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