All Forum Posts by: Angel M.

Anyone willing to share some additional feedback? Did you sign up? If not, any particular reasons why? If so, how is it going so far? @Brad Pickett @Max L. Horton @Jamie Garcia @Michael Sjogren

Sorry for previous post, still getting used to doing this from my phone. The best ways I know to quickly gain enough equity to refi is by buying below market and/or improving the property. 

My first duplex sold at the height of the market in 2005 for 385k. It was listed as a short sale for a while with foreclosure looming. Was listed at something like 300k, then 250k, then 199k, then 149k. I offered 110k, and bank came back few weeks later with 113k. Then over the next 3 years I renovated both units & increased the rents (from 800 & 850 to 1k & 1200). I refi'd in 2012 & then opened a HELOC a few months ago for 65k. Haven't tapped it yet, just positioning myself to be ready when the next deal comes up.

2nd house was vacant for a few years and needed major rehab. Purchased for 130k, and put another 120kish into it. It appraised recently for 310k when refi'd.

One mistake I made was not refi'ing the first one well before I bought the 2nd. When the 2nd deal came up I was in a rush to jump on it, but I still had my FHA loan on my 1st. So I actually applied for the 203k for 2nd and refi'd on 1st at the same time with the same lender. Had a double closing same day, 1 for purchase and 1 for refi. The drawback was I got a higher rate on the refi b/c it was considered investment property instead of primary residence. I learned my lesson and didn't make the same mistake the 2nd time around!

@Carlos Rodrigues Hi, I'm new to the site as well and this is my first post. I'm also following a similar house-hacking strategy in Elizabeth, NJ. In 2009 I picked up a duplex as a short sale in Midtown (near St Mary's / EHS area) using FHA 3.5% down. I lived there for a few years & refi'd into a conventional. I then bought a 2nd duplex in North Elizabeth in need of major reno using FHA 203k with 3.5% down. I've been here now for 3 years and just refi'd into a conventional last month, in preparation for the next FHA loan. Both of my refi's required 20% equity, and even though the conventional rates are higher than the fha rates the monthly payment actually decreased since the mortgage insurance is eliminated.

Hope that helps. Good luck!