All Forum Posts by: Andrew T.

@Taylor L. Definitely open-minded to partnerships and creative financing. Just curious if it was possible to do it on your own from a lending perspective.

Buying the first rental is easy, second one is a little tougher, how do you get beyond?

For example, if you've saved for 20% down, bought your first home, rented it out and refinanced, used the refi $ to purchase another property, how do you get to the third if your income can only withstand a certain DTI ratio. Or, if you are able get to the third, how do you get to the fourth? Your DTI would be maxed out even if lenders are taking into 50-80% of rental income with offset. What's the process to secure mortgages without private, creative lending?

@Alice Huang Hi! Fellow investor in MTL. Welcome!

@Jai Reddy Yes, it's a pre-construction 

@Account Closed I get your point. I pulled the equity to purchase another property. My thought was if I kept the 200k to invest, would I then still be able to qualify for a mortgage to close my owner occupied or would my DTI be too high.

@Jaysen Medhurst Thanks for this. I'm not so risk averse and index funds were my first thought. I'm interested in flipping/BRRRRs and is something I'm researching, but I've never flipped a house before, which adds to the risk. Never considered private lending though!

@Cameron Tope Owner occupied would definitely be better financing, I think I'd be stretched too thin if I didn't pay it down and took on another mortgage. Was thinking about sitting on the cash, but want to make it the most productive during the 2 years

I’m planning a cash out refi on my current investment property where I’ll get a lump sum of 200k at the beginning of April.

I have another property closing March 2022. Amount due: 250k.

I will likely use this cash to then pay down the 250k as an owner occupied.

What are the best strategies to maximize productivity of the 200k for the 23 months?

I'm curious about the best way to make the equity in my Toronto rental property more productive. My mortgage term is coming up in April and instead of a straight renewal, I was considering a refinance. My goal is to further expand my REI portfolio with another investment property, possibly a duplex to house hack in Montreal.

Current property value: 470k, Mortgage: 175k, Available equity (80%): approx 200k.

A few basic questions never dealing with a refinance before, 

1. How is the available equity transferred to be open for use? Where does it live? 

2. Are there geographical limitations to where I can use the available equity? ie. rental property with equity is in Toronto, but new investment property is in Montreal. 

3. Given the mortgage payments for the full amount (375k) begin once the term starts, is the available equity simply idle until it is used to purchase another property? Are there limitations/timelines to use it? For example, if I am still searching for a suitable property to purchase after the term starts.

4. Given I have no other debts, how will this impact my debt ratio in being able to qualify for an additional mortgage. For example, if I find a property for 500k, I would put down the 200k from available equity and have to qualify for a 300k mortgage. How will lenders look at the situation given the 375k debt load plus an additional 300k? Would I seemingly have to qualify for a 675k loan (375k + 300k)?

5. Is there another strategy to use the equity more productively?

Thanks BP community. 

I own a condo currently valued at 470k, owing 170k. Applied for and secured an LoC of 65k while living there a couple years ago when the appraisal was lower. Now it's a rental and the value has increased, I'm told by the same lender I cannot increase my LoC because it's a rental. Is that accurate? I thought it was 60% LTV. Trying to tap into the equity I have for my next investment.

@Hai Loc Absolutely! Plexes are common. I’m contemplating my path to funding and securing one without overextending myself financially.