All Forum Posts by: Andrew Garcia

Hi @Joshua Martin, yes you could refinance the property and take out up to 80% of the value on a 30-year term. 

Let me know if I can be of any assistance.

Hi @Rene Cedillo, if your goal is cashflow, I would fix it up and then do a cash-out refinance for 10-20% of the value to get the cash you invested into the repairs back.

If your goal is to get more properties, I would refinance for 70-75% of the value and use that equity to cover your repair expenses and acquire additional properties.

Hope this helps! Let me know if I can be of any assistance.

Hi @Robert Pierce, talk to a local real estate agent that is familiar with these types of projects. They will be able to properly advise you on the ROI.

@Pafoua Vang Xiong, conventional is not the only type of loan that there is. If you would like, I can run a side-by-side analysis for you with today's rates for a cash-out program that you could use.

@Christine I., if you have one property, you are a serious investor. Not everyone wants to have 1,000 units. It is just as noble to have 1. Invest in what you feel comfortable in. 

If you do not want more debt, don't refinance. If you would rather sell and invest in a less risky and less time-consuming asset class, you should certainly do so.

Hi @Christopher Braga, if you go conventional, you cannot transfer title to an LLC. That will invoke the clause that makes the entire principal sum due and payable.

Therefore, you would have to get a DSCR or other investor-friendly loan with it going in an LLC.

Hope this helps! Let me know if I can be of any assistance.

Hi @Amanda Lawler, my recommendation on your primary would be a cash-out refinance. A HELOC would be an adjustable rate. Since rates are on the rise, you would likely end up paying far more interest than a cash-out.

It seems like you are not planning on repaying the HELOC in the next year so doing a cash-out would likely be best.

If you were to access equity from your investment condo, follow the same logic as the primary.

Hope this helps! Let me know if I can be of any assistance.

@Hans C Hormann, that is a great idea.

You might have some trouble with going 5% down conventional since they cannot consider STR income without having two years of tax returns to show the income.

Before taking out the HELOC, I would contact a loan officer and see if you can qualify based on your income. You do not want to spend all the time and money to take out a HELOC when you cannot use those funds to buy a new primary.

Let me know if I can be of any assistance.

@Andrew C., it depends on your scenario but on Friday, I quoted an investor a conventional rate in the 5s. 6.5 seems high but I am not familiar with your borrower profile.

4.5% is also really low. Typically, those rates are available for CMBS or MF agency loans. Current rates for DSCR or other non-QM residential loans are around 7%. I would be cautious of the company that quoted you 4.5% unless they are a regional bank or credit union that is going to hold the paper.

@Samuel W., I see. DSCR would be your best option for a cash-out in that case.