All Forum Posts by: Ashley Sanchez

Thank you all so much for your advice! 

I honestly cannot thank you enough. Would anybody be able to clarify something for me? If we take the Heloc out and then find some more money to rehab a property…. We can then refinance the property and pay off the HELOC, correct?

Hi there! 
 

We just recently got approved for a HELOC on our main residence in order to buy our income property. Unfortunately, the appraisal did not come back as high as we wanted it to and it looks like we are ending up with about 125K as opposed to the 165K we wanted.

My question is this; originally I was thinking 165K could buy us something outright. Now however, at 125k, I think we are looking at more of a down payment. How will we get approved for a second mortgage though, when we still have our first and now the HELOC on top of that? Is that even doable? I just can wrap my head around a bank approving us for a second mortgage on something with a first mortgage and maxed out HELOC. Our income is 150k gross, and we have student loan debt (50k) but that's it (no car notes, etc.)

Can someone help me understand what we should do next? I’m feeling discouraged 

Hi there! 

A little background on us; hubs is a FF/Medic. I'm a SAHM. Net income last year was 119,000. Trying to get another income stream! We are in the process of HELOC on our primary residence, pulling out about 165k. We are approved but still waiting on appraisal results😅.

In the meantime we are trying to decide the best strategy. My husband really wants to buy a property in the harsher part of town, but where I am located, even the roughest of homes are going for about 200k-230k. Not sure how we'd make that work especially if it needs repairs. He wants to buy, wait a year, mortgage the property and pay off the HELOC, rinse and repeat.

Another option is using the 165k as a down payment on something nicer (like potentially a beach condo or cabin in Georgia), and do short term rentals, but not sure how we'd be approved for a second mortgage if we already have one and a maxed out HELOC.

I’d love to hear some advice or ideas! We are very new to this and we are excited for possibilities, but I’m afraid we can find ourselves frozen in indecision. 

Thank you both! I don’t feel like $28,000 is enough to do anything in the Tampa Bay market, which is too bad! It’s so frustrating knowing I’m sitting on $100,000 equity and can’t do anything with it! 

I will reach out to some local places and see if I can get more :) 

Thanks for the advice! 

Last year I posted a similar question but things have changed since then. 

I’d love some insight on how to get started using an income property I already own. 

We currently own a duplex that is worth roughly $300,000. Our balance on the loan is $185,000. There are two units ( both 3/1). I would love to use this the equity property to leverage us getting more properties and starting the method.

However, when we reached out to our mortgage broker, he said we’d onky be able to pull out about $28,000 and that our rate would increase drastically (currently at 4.2 on a 30 year fixed). We are in the Tampa Bay Area.

What would you do? We have loved being income property owners and want to increase our portfolio, but we just don’t know where to start. 

Excuse my “newness”! Would love any and all advice. 

My husband and I did just this! Best thing we ever did. Our duplex is a little cash cow now!

thank you! We’ve actually both taken and lead the Dave Ramsay course several times! We love it. And we hate debt now! Unfortunately this is debt that was accumulated many years ago, and we just aren’t able to make a difference on it. The interest payments are just too high. We can hardly even chip away. I do what I can to bring in income and anything I make goes towards it. Unfortunately and sadly my husbands salary as a firefighter isn’t a whole lot, even with overtime. 

We don’t have a behavior problem. No car loans, we own both. No further debt accumulation. We HAD a behavior problem, lol. But we just can’t seem to clean it up! It sucks. 

well we still owe 179. So I thought you could only borrow the difference, correct? 

Hi everyone! This is my first post here :) thank you in advance for your patience! 

First a little background: My husband (who is a full time firefighter) and myself live in St. Petersburg, Fl. I have three small kids and am currently at home until they are in school full time. 

We own a duplex. Both sides are rented. We owe 179,000 on the mortgage, but we believe the value is close to 275,000. We also own our own home, that we JUST bought. We owe 275,000 and the value is around 300,000-310,000.

The trouble is...we are about 30,000 in the hole with unsecured debt (credit cards). These are stupid mistakes we made years ago that we cannot shake off because the interest rates are so high. We pay out close to $1000 in debt payments every month while barely moving the needle. If it weren’t for that, we would be doing so well! We only pay around 900 for our mortgage on our home thanks to the duplex income. My husband has loved being a property owner and has dreams of buying more properties but we cannot do anything because of this stupid debt weighing us down. Most of the debt is in my name (save one card with a $7500 balance that is in his name). All the properties were purchased using his income and credit only. 

I began looking at options and thought maybe we could do a cash out refi of the duplex...but then read that we could only do 70 LTV because it is 2 units. Does that sound right? That wouldn't help much. It would only be $10,000 we could squeeze out BEGORE paying closing costs 🤔. Is that right?

If so, does anyone have any advice on another way we can tap into this equity? We would love to much to start investing correctly and put this debt behind us. Of course we are trying to chip away at it. I do as much as I can from home through various small businesses, but we just cannot move the needle.

I’d love to hear what you would do in this situation! I need to hear some creative solutions. If we could free up $1000 a month that would change our lives! And it would certainly head us in the right direction. 

Thanks for entertaining a newbie!