All Forum Posts by: John Hicks

Esteemed REI's,

I wanted to get some opinions on my current mortgage situation and see if there is an option that will possibly lower my interest rate and payment on 3 long term rentals I have. I hear a lot about portfolio lenders and wondered if it made sense to try and consolidate all 3 into one loan (assuming that's how the portfolio lenders work).

Mortgage 1, 30 yr conv, 6.75%, 2008, 55k orig bal, 46k remain, PITI $470/mo. Rented 95% since purchased. Bank of America.

Mortgage 2, 30 yr conv, 5.75%, 2009, 35k orig bal, 31k remain, PITI $376/mo. Rented 95% since purchased. Everhome

Mortgage 3, 30 yr conv, 5.625%, 2009, 55k orig bal, 49k remain, PITI $441/mo. Rented 90% since purchased. Everhome

Rental House #4, no mortgage (maybe use for collateral?)

I'm not in any bind whatsoever but was just thinking if I could effectively lower the payment by a few hundred every month, that wouldn't be a bad thing.

Opinions? Other options to suggest?

Thanks!

@Frank M. May I ask, how quickly after the rehab were you able to do the refi?

These were done at the tail end of the glory days in 2007/2008. Closed, rehabbed and cashed out in about 90 days. I haven't tried it since then so I don't know how long it would take with all the new rules and regs.

Let's say you purchase a house for cash at $30,000 and put $10,000 in rehab. Now the house will appraise for $75,000 and you go to the bank and get a mortgage for $55,000 and at closing you get the "cash " out in the form of a check to you at closing, in effect netting a $15,000 profit. Done exactly that two times.