All Forum Posts by: Armand P.

thank you for your response. So, even though I refinanced my primary I can still rent it out since its not considered an investment? In other words is there a 6 to 12 month waiting period before you can rent out a primary resident?

In the above scenario do we need to invest in either a duplex OR a house that has an in-law unit to show that it's a partial investment?

Rules might be diff in California where i am than in other states but its good to hash out these ideas

Hello BP,

Need some clarity. I recently did a cash-out refi on my primary with the intent of using the funds to buy a second home with my partner and kids. We are currently renting and the original plan was to have my partner apply for a loan and her and I be on title since I already own a home and wouldn't qualify.

Our lease is up in May, however, we just found out that a family member might be moving in with us temporarily and she may need to extend the lease. This creates an issue b/c without her applying for a loan it leaves me searching for other alternatives. One of which i can use the funds to purchase an investment property/fixer upper,however, can I and my family live in it OR does it need to be renting out? Another option is to rent out my primary, but since i just refinanced I'm not sure if thats an option.

Anyone with ideas or thoughts on this especially legal advice would be much appreciated.

NOTE: The reason why I am not selling my primary (although have considered it) is due to some unexpected legal issues that i need to address. Furthermore, if i am able to rent it out it would more than cover all my mortgage expenses.

Thank you
Armand

Hello BP,

One of my colleagues is considering converting his primary residence to an investment property. He's lived in the property for 10 years and recently refinanced to take advantage of low rates. His plan is to move closer to work in the Eastbay and does not want to sell the property.

Can a primary residence be converted into a rental property after a refi since it was a conventional and not a investment loan?

Thank you
Armand

Hi BP,

To my knowledge property tax will not increase during a refinance or HELOC?

Any thoughts?

Thank you,

Armand

Hi Zach,

This would be for my primary resident and the idea behind heloc was to use to for an investment. However, if I were to do a cash-out refi then I would have no variable rate it would be included in my 30 yr fixed.

Ty!

Hello BP,

Shortly after the shutdown in March I decided to get a HELOC. I'm 8 years into my mortgage at 3.62% for 30 yr fixed. I recently spoke to a mortgage broker who advised to do a cash-out refi and close out the HELOC since its a variable rate interest only. This way I would have a set payment per month and have cash on hand.

Would this be a good time to consider a refi OR leave it as is since I'm already 8 years into my ownership? She said that the rates now are around 3% which would save me about $250 per month with HELOC.

Any thoughts?

Thank you,

Armand

Hello BP,

To all bay area RE agents in the past few weeks I've noticed an increased home values in Hayward CA. Could it be that new housing developments are making it a desirable place to live now? You couldn't find anything under $500K a few months ago now a decent home is listed for $550K or more. On the other hand, I am seeing increase in inventory in Livermore, Mountain house and Discovery bay with a much lower listing price than prior.

I believe we will continue to see more inventory and price declines in place like San Jose, Morgan Hill, Fremont Newark at least thru the summer going into fall

Would like to get your thoughts

Thanks

Hello BP,

Let's say someone invests in a rental property could they legally rent it out to a family member or friend OR is this not allowed?

Thank you,
Armand

Hello BP, 

I have a car note for $10k at 5.4% for 5 years along with a $5k credit card debt at 0%. Is it best to payoff the car loan now and avoid paying interest? Will this help boost my credit? Looking to improve my DTI so I can apply for investment loan.

Thanks,

Armand 

Hello,

I have two separate scenarios regarding lending so I will break it down.

First, I own a primary residence in (bay area) peninsula that my mother currently lives in and I recently took out a HELOC. I live with my partner and two kids, and we are planning to purchase a new home within 6 months in the following cities: Lathrop, San Jose, Morgan Hill, and possibly Fremont. My partner suggest that I sell my primary and look for a 1 bedroom apartment for my mother so we can use the proceeds from the sell to buy our new home. I rather keep the primary and find alternative options instead. One thought is we could use the HELOC as a down-payment and apply for loan together. However, does it make sense for me to be a co-borrower since my DTI is likely higher based on primary mortgage, credit card debt, car note and now a HELOC (that has not been used)? My partner is a Branch Manager at a Bank, and I'm sure she'd have no issues getting approved as a single borrower based on her income, DTI and savings. (Thoughts, suggestions)

Second idea:
Use the HELOC for buy and hold REI out of state. It would be challenging to buy something in the bay area that cash-flows. I could leverage the HELOC as a down-payment/closing costs and be able to invest in multiple properties. (Thoughts suggestions)

Thank you,

Armand