All Forum Posts by: Caleb Mooney

The tenant should have renter's insurance for this exact reason. Most larger property managers require it in their leases nowadays. Up to you if you want to help them out beyond what you are already doing.

What is your current rate? All lenders generally offer rates in a similar range, so it might not make sense to refinance just for a slightly lower rate when you consider the costs that are incurred. If the property value has appreciated and you can pull out cash, then it could make sense to refinance.

The HELOC doesn't make sense. The rate is too high and the leverage is too low to be useful. Unless you're investing the $156k in something that is making more than 10% you should pay the HELOC off. You can get a lower LTV DSCR loan and break even by renting it, but consider that interest rates probably won't drop considerably for a couple years, there are typically prepayment penalties associated with paying the loan off before 3 or 5 years, and there are costs associated with refinancing. You'll have similar issues with a conventional mortgage except for the prepayment penalty.

Do you want to have your money tied up in an investment that's breaking even and waiting for appreciation/interest rates dropping, or put that money into a new investment that could generate cash sooner? Nothing wrong with breaking even.

A local credit union or bank like Pima Federal Credit Union will probably give you the best rates. That being said, depending on your investing goals, it might make sense to go with a DSCR loan. Rates are similar, you can get interest only payments so your monthly payment is lower, and the loan doesn't go on your credit report so you can continue to invest in other properties without running into DTI issues.

 Hi Jose, rates will generally be in the 7's with the lender taking 1-2 points. This is what we offer, and we can offer interest only payments which will help with cash flow. Happy to answer any questions you have, feel free to DM me.