All Forum Posts by: David Da Silva

Hi Brenda

A cash-out refi is most likely gonna have a more favorable rate and probably offer more equity. A HELOC however, gives you the flexibility to have a credit line you don't have to pay off until you use it, which is very powerful.

If you don't see yourself finding a great deal soon, I'd consider a HELOC so at least you have the money ready and you don't have to pay a loan.

The only time I suggest for my clients use a refi is when they need to get out of an FHA loan to drop the PMI and/or pull equity for another immediate purchase.

Hi Julia

I'm a real estate agent and investor in both NJ and NY, so this hits home for me. 

Lot's of aspects to cover such as the goal and how much you want/are comfortable with managing. My partners and I see NYC downtrending in many higher income areas as far as appreciation goes. NJ is booming, some areas have increased as much as 10-15% in appreciation over the past couple years so thats massive (not to mention the rents are through the roof as well). 

For this reason, I also agree NJ is the way to go. As Darren said, Newark (and similar areas such as East Orange etc..) might be a bit of a challenge for a newer investor. However, I wouldn't let that stop you without at least looking into the area(s) firsthand with someone experienced in those locations. Most of the tenant issues I've experienced or have seen could have been mitigated with proper tenant screening and a solid lease agreement. The way I see it is: more time invested = more potential profit. Less time invested and more comfort = less potential profit.

There are plenty of areas to look at so I would suggest doing a tour of the area and go from there. Bergen, Essex, Hudson, Passaic, and Union County are going to be your preferred choices given the distance criteria you supplied.

@Shivam Patel

$300 per mo isn't much cashflow, especially given the fact it's only one door. If you lose one month of rent, you lost half a yr of cashflow at least. This is why I only deal with multifamily properties when it comes to buy and holds here in NJ, but that's a whole other conversation. In this case, selling might be your best bet. 

Any multi I look into for myself (or my clients) must have the potential to cashflow at least $800-$1200 per mo when fully rented (we usually surpass this number after bringing in creative strategies).

With that said, if you choose to refi, the rate may go up slightly, but remember that if your 1st loan was FHA, you're also knocking out the PMI which will save you at least $200-$300 per mo my guess.

If my clients want a single, I always advise they do an FHA on a multi first, then do a 5% conventional on a single. That way their 1st deal pays for their home.

Hope this helps...

@Shivam Patel

Correct. 

But if you went conventional on your first deal, I'm assuming you're already halfway there if not closer? (In terms of equity vs the Downpayment)

Homes in NJ have skyrocketed in the past yr so you might already be there in terms of appreciation + monthly payments bringing down the mortgage.

@Shivam Patel

There's another trick you can do as well. Instead of selling, you can refinance the FHA loan into a conventional and then do another FHA. There's a few nuances to this, but I've done it with many of my clients, including a couple of my own deals.

Feel free to reach out to me with specifics if you need help.

@Shivam Patel

You can only have one active FHA loan at a time, unless if you relocate over 100 miles or meet other specific criteria.

Aside from that, you can get an FHA loan at basically any time as long as it's your only one.

What did you buy the home for and what's the mortgage now?

If you went conventional, I would suggest going FHA for the next deal.

3.5% down and it's been over 1 yr so you'll qualify easily (income and DTI aside).

I work in Union County btw.. let me know if you need help with anything there.

First, ask yourself, what am I buying and why?

Are you buying a sfr, multi, condo??

Flipping or buy and hold??

Find out what you're getting and stick to the plan, once you know that you can run the #s.

You buy a deal because its a DEAL, not because the market is up or down. The #s will tell you if it makes sense..

Why would the Agent bother doing 2 offers - unless you mean they only submitted their own..

If you feel that was what happened, reach out to the listing agent's brokerage and ask for proof that the seller reviewed your offer. If no answer, you can contact NAR. I'm sure your agent would love to hear this.

The MLS will eventually display who the buyer is so you'll have your info there as well.

Hi Joseph, I'm a real estate agent and investor in Northern NJ.

Can you provide more details on your current property? Usually thats where I can determine what your options are.

What mortgage did you acquire your home with? (FHA, Conv..)

How long ago?

Price?

Location?

Sole owner?

Home Value and rental income?