All Forum Posts by: David Jenkins

@John Leavelle It would appraise for 800K easy, if not more. 

@Walter Roby jr -- Yes, includes PITI. I also self manage. I don't really factor in vacancy with this type of thing. It's a great house in a very desirable neighborhood. I'll never have trouble renting it should the current tenants leave.

@Shayne Fee @Jeff Dulla -- The only reason I'm considering the refi is should there be another downturn, I'll have that line to swoop up more property on the cheap. I don't think I'll have trouble renting the property or finding new tenants. The house is in a very up & coming and desirable area. 

Thank you both for your insight! 

That sounds pretty good. I think mine is 5 or 10 more years, which at that point I'll hopefully have figured out what I'm doing with that place, or have traded up by then. 

@Shayne Fee that makes sense! Are you paying interest only/minimum payments on the heloc? 

And -- are you worried about the rate going up? 

@Shayne Fee -- So you decided to refi and pay off your other loans? 

@Jeff Dulla -- 420K on the conventional at 3.99 -- 140K on the line of credit at 3.53. 

Total payments are at about 3300/mo for both including taxes & insurance -- Rental income is $4200/mo. 

New loan would be 560K at 4.85 and bring the payments up to about 3700/mo with taxes and insurance. 

And no new property on the horizon. But doing this would give me the freedom to get something if it popped up. 

@Jeff Dulla No new property in the works, but freeing up the line of credit would just give me the freedom to purchase something else if it pops up in the future. 

Current rates on loans are 3.99/conventional -- 3.53-line of credit. 

A new refi would be 4.85 across the board. 

I purchased a 3rd rental property in Los Angeles last year -- A SFR in a booming area I got off market for really cheap. It kind of came out of nowhere, so to obtain the property I got a conventional loan for 80% -- then used a line of credit I had on another property for the 20% downpayment -- and finally, about $100K of my own cash to remodel the house (it was in very bad shape).

In doing this I earned about $150K in equity from the get go, and I'd like to use the house to build further equity as the area cooks and then 1031 exchange in 2-5 years and buy something larger. 

With that -- With the rental income I'm getting, after paying off both my mortgage and line of credit every month I earn about $750 free and clear. 

I'd love to be able to do a cash out refi -- The cash portion used to pay off the line of credit and the rest to pay off the conventional mortgage. This would consolidate it all into one, so I wouldn't feel so over leveraged, but most importantly, free up my line of credit for more potential property purchases. 

The issue here -- is doing the new refi will raise my mortgage another $400 or so per month, and eat into my profits. I realize it's not all that much either way -- But it's nice having a little extra pocket cash every month. 

What would you do? 

@Brie Schmidt -- Ah, I stand corrected. Thanks.