All Forum Posts by: Dan C.

Thank you Harjeet!

I'm thinking about doing a cash-out refinance on my primary residence and also refinancing an investment property that I own. I have a home equity loan on the investment property I took out after I purchased it. Assuming I use the same lender, can I use some of the cash-out on my primary residence to pay off the home equity loan so that the refinance on the investment property is a rate and term and not a cash out? Thought here is also the LTV on my investment would be lower and that would impact the rate in a favorable way. Below are the data points. Would appreciate some guidance. TIA!

Primary Residence: $500K estimated property value, loan balance is $325K

Investment Property: $220K estimated property value, primary loan balance $130K, home equity loan balance $22.5K

@John Teachout I did get that feedback when I was trying to find my last tenant so I know it does impact the number of people interested. The view of the highway might deter some as well although there is a nice skyline view right after the highway.

They are building a sound abatement wall but I’m not expecting much impact since I’m on the 3rd floor.

@Ravi P. thanks. I actually contacted them but they are way overpriced in my opinion. The acoustic grade are $36 a sq ft. I have a couple large windows (6x6) so it added up quick. I like Magnetite or similar DIY with the same magnetic/acrylic technology as it’s a lot more affordable.

I’ve done the research so really just wanting some advice on whether it’s worth it or not in terms of additional rent.

@Scott Mac they are removable (magnetic technology) so I'm not really worried about that

@Sam Shueh you may be right but replacing insulation is going to be cost prohibitive. I had an acoustics expert come out years ago when I was living there and thinking about doing this. He suggested I start with the windows. I'm not trying to eliminate all noise but just reduce the decibel levels a little so it's quieter. Soundproofing the unit otherwise will get expensive quick

I have a rental that backs up to a busy highway. It's a third floor unit in a condominium. The road noise isn't terrible considering how close to the highway it is. There are double pane windows, which are clearly helping mute a lot of the noise. They are expanding the highway so it's going to be even closer to the property. I'm considering installing sound proof acrylic window inserts (secondary glazing) that will reduce the amount of noise. It's going to cost between $3,000-4,000. I'm currently renting for $1,650 and there is an apartment complex pretty much right next to the property where rents are in the $1,800-1,900 range. Amenities are more or less the same. I would say my unit has better appliances and fixtures. I'm on the fence about spending the money because there's no guarantee I'll get market rent after the fact. That said, if I do the payback time would only be two years and everything after that would be gravy. Another point is that if I end up wanting to sell down the road I'll likely have to make the improvements to get the most interest from prospective buyers.

Has anyone faced anything similar/thought about reducing the noise levels in a rental? Were you able to charge higher rent?

TIA!

I'm in the exact same boat as you with my condo in Sandy Springs. I've been thinking about taking out a HELOC because I really want to try the BRRRR method however I probably wouldn't have enough cash for the rehab after a down payment and I'm not sure about going the hard money route. I've heard people putting the rehab on credit cards but heard that can make refinancing tricky. This is all hypothetical since I haven't been able to find a deal yet that makes sense. I really want to pull the trigger on something but at the same time don't want to FOMO in and end up losing money.

@Harjeet Bhatti Thank you

If we shift to FHA for a moment, what exactly is required to "prove a longstanding friendship"? It just seems extremely arbitrary. Will it vary lender to lender and based on how well the individuals qualify for the loan together?

@Harjeet Bhatti does it matter who contributes the 5%? I've been researching this and I thought I read somewhere that if the income of a non occupant co borrower is used to qualify for a loan then the occupying co borrow must make the first 5% of the down payment.

Thank you @Harjeet Bhatti

If I already own two homes is that going to have an impact on the 5% down payment threshold?