All Forum Posts by: David Dye

@Chris Penny

I would look out in the AV area.  It is a manageable drive and the properties are pretty cheap for good quality.  Tons of properties out there are under $200k and the rents cover the mortgage and cash flow pretty well...  Big rental area so you will have no problem getting applications (I got 11 in one week...).  If you need a Realtor referral, let me know!

Hope this helps!

-David

Hey David Rutledge I'm a local lender from up in Torrance (actually used to live in Lake Forrest). If you qualify for a conventional (which it sounds like you do), I would go that way. You can get conventional with very low down as well. The mortgage insurance is much cheaper and you will have less strict property guidelines. You can also get it without mortgage insurance (If it is worth it to go the no MI route will depend on your credit, the property, etc.). And yes, your rental income can be used to qualify as long as you are reporting it correctly on your tax returns. Feel free to PM me if you would like to chat more. Would love to connect with you! Cheers and Happy New Year! -David

@Val C.

There are a lot of factors in play here... A low FICO is not a deal breaker... However, what lead to the low FICO can make a big difference.  

May I ask what lead to the low fico?  (Feel free to shoot me a colleague request/PM if you are not comfortable posting it publicly)

Cheers!
David

@Samuel Watts

If you are on title less than 6 months, you will only be able to get out what you paid (if you are going conventional).  If you are on title longer than 6 months, you can cash out based on appraisal.

@Hagop Sandaldjian

@Aaron Pfeffer Has makes some very good points.  One thing I would like to add, if I may, is regarding the cashing out.  Keep in mind that in order to cash anything out after rehab with a conventional loan, you MUST be on title for 6 months.  If not, you can only take out your purchase price.  Just something to consider when penciling out your numbers.  Make sure you have enough reserves to hold for at least 6 months.

Hope this helps!

@Steven Ellis

Just sent you a PM.  Can I assume your lender is quoting you no cash towards closing?

Cheers, 
David

@Steven Ellis

It is difficult to say with the jumbos just using the information provided.  To get an idea as to if that is a good quote, we would need to know your actual approximate credit score, purchase price, property type, and down payment.  Each one of these things has a separate 'adjustment' that we use to calculate the pricing of the loan. What I can say... Is that it is not a crazy rate.... It may be high but it is not crazy high (then again, I understand that a small difference in rate may make a big difference depending on purchase price). While many places are still advertising really low rates, the truth is that they have really jumped up over the past two weeks.

As for fixed vs. adjustable, most people refi out at the 5-7 year mark to help with cash flow... Especially those who are concerned with growing their portfolio. I don't normally jump right to the adjustable when people come to me for a loan but sometimes they do make sense.  I say sometimes because I would only suggest them if there was a significant difference in the rate and the loan size. 

Hope this helps!

-David

@Hagop Sandaldjian

You are in LA, I see.  My advice, look out in AV area.  You can pick up some nice cash flowing properties in the $150-200k range.  With $50k, you have plenty to put 20% down and have reserves.  The area is growing and you are within an hour drive.

If you would like some suggestions on financing, feel free to shoot me a PM.  Would love to share my experience in the area with you!

-David

@Ashton Sharp

IMO: I would hold off for now. The PMI savings are not going to be worth the costs to refinance at this time. Just work on building the equity in the property so you dont have to worry about the PMI. Then you can see if it is worth it to refinance.

-David

@Brant Jones

Yes.  With a new appraisal.

Would you be able to find another property that would earn you more than the interest you would be saving?  If so, sounds like a good way to leverage your benefits.  Also, keep in mind the funding fee that will be added to the loan when running your numbers.

-David