All Forum Posts by: Daniel Kim

Hi and welcome,

I am in Orange County also. This is the second year I am using my tax guy. His office is based out of the city of La Palma but everything can be done online (I've never been to his office). I chose to work with him because he also owns several rental properties. I can't say he is the most communicative tax preparer I've ever worked with but he knows what he's doing. Let me know if you want his info.

@Andrew George Dennis I only got 60% LTV. I actually wanted to use the cash for closing costs on my other two refinances so 60 was enough for me. Higher would have required me to go with different banks who would take longer to close...

The "Landlord Condo Insurance" sounds like what I have for my condo rentals. The HOA master covers the outside (roof, walkways, etc.) and the landlord policy covers the inside (drywall, cabinets, appliances, etc.). It's a good idea to require renters to have a renter insurance policy (it's not that much a month) because they will be in shock if something major happens and they expect the landlord to replace their personal belongings.

Sorry I don't have recommendations for any agents but I found my mortgage broker off of here and refinanced three loans here in SoCal with her last year. Let me know if you want her information.

@Steve O. The only way I have used my HELOC's are for real estate down payments. Keeping track of the interest deductions would be a nightmare for me if I started pulling from it for repairs, a new car, etc. etc. My first HELOC has a 10 year draw time during which only interest has to be paid. I was planning to chip away at the balance/keep making payments for those 10 years but this year (Year 5 of) with the interest rates being so low I just cashout refinanced and paid off all the HELOC's down to zero. Oh, great that you got a fixed rate. Mine are both prime + 1, but they have had promotions where you can lock in a balance at a fixed rate.

Hi @Melina Victoria W., believe me, I am not an expert in this stuff by any means so eventually talking with a trusted mortgage broker or lender would probably be best.

Every lender has told me that as long as different lenders run multiple credit checks within a month's time, your credit score will not go down. The credit companies know you are just shopping around for the same loan. I've always been like, are they for real... but since I subscribe to a few credit monitoring services I will hopefully find out if my credit does go down a lot due to too many credit checks.

Wow, I have so much mortgage debt that I can't even imagine having a 609K home paid in full - good for you! I am assuming this is your personal residence? As long as you have a plan and can make your numbers work, I would consider taking an HELOC on it. Getting an HELOC on your primary is so much more easier than on a rental (even pre-Covid). I would always try to exhaust the HELOC route before going the mortgage route. The HELOC just sits there if you don't use it, as opposed to paying interest on a mortgage from the second you get one. Also, the closing costs on a HELOC are nothing compared to those on a mortgage.

Again, it all depends on your plan (California vs. out-of-state, etc.) but no, I wouldn't pay off a rental in full unless I literally had no where else to spend the money. They are always talking about "leverage" and "using other people's money" on this site, so instead of paying a mortgage off, I would use that money to buy more rentals.

So, for example, I used the HELOC on my Property 1 to buy my Property 2. I'm sure you know California prices (even back in 2016) so no way I was going to have enough saved up for 20% down payment (to avoid PMI) to put down for Property 2. My HELOC on Property 1 was about 57K. I think I used 50K so, no, it wasn't the full amount, only what I used. The lender asked for a copy of the HELOC agreement in order to calculate how much the interest-only payment on 50K would be every month.

If you need to speak to a lender let me know. The mortgage broker who just got my refinances done in November actually works for a company based out of San Diego (called C2). 

Hi, I'm not a lender, so I just have my experiences using HELOC's as down payments to refer to.

Both of my HELOC's are currently at interest-only, so only the required future monthly payment was calculated into my DTI when applying for a purchase loan. Only when I did three refinances last year were the full HELOC amounts used in terms of the LTV.

In terms of going back and getting the HELOC limit raised, I'm not sure if most HELOC's work like that. If anything, I am in fear of the limits being suddenly lowered due to the economy. I would guess that if you wanted a higher HELOC, you would need to apply for a new one.

Congrats on getting under contract! I agree with what Jane said. If the cost to fix the columns and other things will ruin your numbers (not sure if you are planning to BRRR or...), then I would walk away.

However, I've never sold yet in this point of my real estate journey. When I do sell a property one day and a buyer who is following a inspection report that I had no say in is asking me to make thousands of dollars of repairs, I'd probably tell them to kick rocks lol... Since most of us are in a seller's market, you just have to be prepared to lose the deal if you are unhappy with the repairs refusal. Either way, best wishes!

I wouldn't worry about whether you are being good tenants... you seem to really care about the home which is great. Some landlords dread the kind of tenants who call in the middle of the night for a broken toilet and some dread tenants who don't call for a leaking toilet until the ceiling below is leaking... some dread both. The owner knew how old the house was when they bought it and, if it's their first property, then it's time they learned about the maintenance that comes along with old homes. If you really are "annoying" the landlord, you'll know it, as your messages will take longer and longer to get a response. Also, you are paying rent, so irregardless of how much you are paying in rent or the class of the neighborhood or etc. etc., you have every right to live in a safe and livable home.