All Forum Posts by: Dylan S.

@Daniel Soovajian For non owner occupied properties, lenders typically go up to 75%-80% LTV maximum of the current market value (appraisal value). Most lenders do require a full appraisal be done by one of their approved vendors.

@Robert Leonard I had the same scenario a few months ago.  WF held my mortgage for my primary residence which I purchased 4 years ago.  I too added a fence, replaced the hot water heater, replaced the roof, along with a handful of other smaller projects.  I also opted for the BPO appraisal due to the cost savings.  The appraiser contacted me prior to the appraisal asking me to have a list of improvements I have made to the property, the dollar amount, and the dates of improvements.  My understanding was that they didn't care about all the regular "maintenance" items (hot water heater, roof, etc.) but the fence was a "significant" improvement to the property. 

I successfully removed my PMI through this process. It sounds like your situation is very similar to mine. In my opinion, you'll be fine if you move forward with the BPO.

@Shiraz Ali I limit my searches to 17102 and north of Division St.  as @Travis Wylie mentioned.  He brought up a good point about the surrounding suburbs , keep in mind that you'll pay more of a premium for lower crime rates and better schools.  

@Shiraz Ali Welcome.  I own one rental property in Harrisburg, PA in the midtown part of the city (17102).  There are definitely some parts of the city that you do want to avoid due to high crime, particularly Allison Hill. 

The midtown section has a lot of craft restaurants, breweries, and vibrant arts scene.  Its referred to as the up and coming portion of the city.  There is going to be a new federal courthouse built in midtown as well which should be completed by 2021. 

Best of Luck!

@William Lewis you're correct that closing costs on HELOC is much lower, usually just an application fee along with an annual fee (some banks will make you pay for the appraisal as well). HELOC's give you more flexibility as well rather than a cash out refi. With a HELOC you aren't required to draw on it immediately and will only pay interest on the portion you use. You will probably find a more favorable interest rate with a refi than HELOC. HELOC's are usually variable interest rates base off Prime.

@Kendrick Smith I'm in a similar situation. My wife and I purchased our first rental a few months ago which depleted the majority of our savings. I'm currently in the process of obtaining a HELOC to tap into the equity of my primary residence as well as looking into private lending and/or partners to help fund the next property.

@Brandon L. thank you for the links.  I appreciate your response!

Thanks, @Brenton Way!  Its great to connect with a familiar face on here!  I always like talking real estate especially with someone more experienced than I.  We'll have to get together to discuss strategies. 

Thanks, @Travis Wylie.  I appreciate it!  You're right, a lot of money is being poured into the downtown/midtown area.  I'm excited to see where it goes.  

Thanks for the feedback @Scott Morongell!  I do want to stick with 1-4 unit properties for now and am totally open to partnering with another investor.