All Forum Posts by: Dakota Cochran

If your mortgage payments will be about $1500 a month, how much are property taxes? You want to make sure your rent covers all of your expenses. You might be better off leaving it as a 2/1 and using that $38K for a down payment on a new rental.

the 1500 includes taxes and insurance and this property could make a good air bnb, it has a lake view and is 10 mins from the beach. The room should cost less then 10k and then the rest with savings was going tword a second property hopefully in the same area

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Quote from @Theresa Harris:

Is this an existing rental or will it be a rental? If you add a bedroom (I'd add a second bath if you can to make it a 3/2), how much would it rent for, how much would the renos cost and how much would it add to the value of the home.

this home is gonna be a rental, the bedroom should make it go up to 300k and the second bath room could be pretty tricky but it’s possible. going rent right now in the area is $1800-2000 a month

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Hi bp family, I have got my numbers sorted out and clear to close. I wanted to take advantage of lower rates during the pandemic but wasn’t able to until recently due to proof income (1099)
I’m cleared to close and feel comfortable but still want some people to poke wholes if possible. I’m the first in my family to own a home and want to own Real estate so I don’t have anyone to help guide.

House is 2/1 in largo Florida
Current loan:

I bought the house for 160k. I owe 150k , It’s at 6.25% interest, house appraised at 278k last week

new loan: 200k at 5.75% interest, would give me 38k cash back

My current payment is set to 1500 a month some applied to principle. The new loan would be just under 1500 a month with t&a

I plan on putting another bedroom on (at cost) me and family are contractors and then holding the rest (with other savings) for hopefully an opportunity to come up where I can buy an investment property.

my thought on this was to not max leverage my current house but give a little cash boost well also allowing room for the current market to cool down. Please any advice or ideas are welcome thank you!!

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Thank you everyone for your insight!

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Tampa, Florida

so basically I’m new to real estate and I’m looking at a property , the guy wants cash only and if I don’t have the funds and don’t want a partner that leaves hard money lending, right? So I think I have a basic understanding but what’s the fine print? How do i find a hard money lender, what’s a good interest rate, any major things to watch for or anything I need to know to protect myself?

Thanks a million!

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Tampa, Florida

Thank you everyone for your input! I’m talking to a broker. I’m gonna fully assess the situation and see what seems best. Thanks again, newbie.

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Saint Petersburg, Florida

So I know a lot of this depends on specific numbers but I will try to keep it simple. I’m trying to refi my Florida home, I occupy it, credit is good, income is good, increased value, and current interest rate is 6.5%. I wanna take advantage well I can and I plan on trying to buy a multi family soon.

My two questions are:

Should I pursue just a rate and term or cash out?

How do I compare lenders to know if I’m getting the best deal? Is there a certain fee, percent or closing cost to use?
thanks in advance, newbie

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Saint Petersburg, Florida

Quote from @Dan Maciejewski:

My 2¢: You may want to re-fi if the numbers work, but I wouldn't pull any cash out of this.

1. Shop around and talk to a few (more than 2) lenders to get a feel for rates and costs and payments.

2. You're probably going to save around 1% on your 6.5%. Given that you got 6.5% when prime was 4-5%, you're in almost exactly the same boat right now. That's like 100-150/month in payments

3. A re-fi will incur closing costs again. You will probably roll those into the loan but they'll be there, raising your loan and your LTV.

4. You definitely want to cash flow if you move out and rent it out. It looks like you'll do that as-is, so it's not a big deal if you don't get this done, although I would try to lock in a lower rate for a 30 year if you're planning to hold. The rates are not going to be as low as they just were again in our lifetimes.

5. I would rather drop any PMI than pull cash out. Dropping the PMI would give you more cash flow and probably make up for the minimal cash you would pull out in a year or so. And do that while saving you that much in future PMI payments. Judging by the property appreciation we've seen, it looks like you were maxing out LTV and are probably paying PMI at purchase. The PMI itself is probably equal to the interest savings.

Thank you for your insight, the loan structure was all I could get with what I had. From then to know, I’ve renovated the bathroom got a better job and increased my credit score. The whole idea of refi was half on fomo a year ago but I didn’t qualify till just now. I think combining the two loans, possibly a lower rate and getting rid of the pmi is all I could ask for. Thanks again

1 Vote

Saint Petersburg, Florida

I’m new to the forum sorry if I replied wrong. Thank you anyone and everyone for the help!

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Saint Petersburg, Florida

Quote from @Matthew Crivelli:

Need more information.

You owe 150k but how much is the property worth?

Your current rate at 6.5% is high for bank rates, even with the rates going up. If you need the cash, you could lower your rate and the new tenant could pay the mortgage every month, taking the cash might not be a bad idea.

I don't believe cashflow is king, I think appreciation is king and cashflow is the cream that floats to the top. (In my opinion)

@Dakota Cochran

The property’s Comparables are 200k- 225k I’ve done some small renovations so I’d like to think it’s 220ish. Im in pinellas county Florida and I bought this house by the skin of my teeth a year before the pandemic. Due to self employment issues I couldn’t refi when rate where super low. Either way I’m saving to aim for a duplex/ triplex to house hack in another state. Cash out would help but I don’t wanna go upside down. And rate and term would cost money that’s being saved. I also was thinking keep the first property the way it is for a safety net because I have a family of 4 so I can’t get crazy risky, thanks again for the advice!

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Saint Petersburg, Florida

All Forum Posts by: Dakota Cochran

Dakota Cochran has started 4 posts and replied 13 times.

Post: Should I refi? All details included

Post: Should I refi? All details included

Post: Should I refi? All details included

Post: Please explain a Hard money lender

Post: Please explain a Hard money lender

Post: Newbie with refi questions

Post: Newbie with refi questions

Post: To refi or not to refi

Post: To refi or not to refi

Post: To refi or not to refi