All Forum Posts by: Account Closed

Thank you Kerry,

I want to do single family rentals and small multifamilies for the long term. Operate with a management company. Out of state.

I'm still unsure if I should cashing out part of the 150K equity that I have on my house and refinancing into a higher interest rate (current is 3.5% @15 years vs 4.75% @ 30 years with  500$ less in mortgage per month)

The alternative would be to spend my own cash as down payment, which I could. But I read several articles on this board about the power of leverage and I do have enough cash to weather a possible downturn. 

Thanks Kyle, I really appreciate your advices.

Thank you very much Kyle,

In fact, we ran the numbers and with the cash out refi, i would get about 60K plus my mortgage will go down $500 per month on a 30 year amortization. 

But the reason why I'm undecided on the cash out is that they are willing to offer me 60K for the cash out, plus 100K for the heloc plus another 80K for the LOC, a total of 240K which is possibly more than I need. Or maybe I should just get all the cash that they are willing to give.

I was thinking about securing the HELOC and LOC first and then decide later but I wanted to hear your opinions to see if the deal offered on the cash out refi was good.

The biggest question: they are also offering me up to 4 mortgages at about 4.75% with a 30 year amortization to buy my rentals. I would use the cash out, LOC and heloc as down payment. Is that a good 100% leverage strategy? I would not use my own cash but I could weather a downturn with my own cash with no problem.

Thank you for your reply Scott! Would you do the cash out refinance even if the interest rate is higher than my current interest rate? My mortgage is currently at 3.5%, 15 years and they are offering 3.75% for 15 years or 4.75% for 30 years. I was thinking about going for a 30 year mortgage to lower my payment.

Hello BPers,

I'm a newbie, planning on buying my first SFR in the next 4 months. I'm working on the financing with my bank and I already have my eyes on a property.

Here are the financing options offered by my bank:

1. cash out refi. I have about 100k equity on my house and my bank is offering to refinance the house, apr 3.75% on 15 years or 4.75% on 30 years and give me 60k in cash. Now my mortgage is a 15 year at 3.5%. I read that cash out refi is only worth it if the interest offered is lower than the original one.

do you think I should accept this option, considering that i also have to pay the refi fees? I'm inclined to say Nay!!!

2. They also want to offer me a HELOC with a 100k limit. I dont know the other details yet. we'll talk about it tomorrow.

3. They plan on giving me an unsecured LOC with 80k limit.

4. Last and more importantly, they are offering up to 4 residential type mortgages at less than 4% interest rate for 30 years.

My request to the banker was very specific: I want financing options with almost 100% financing. This is what she offered. What do you think? How would you proceed if you were me.

I'd like to buy my first property before the end of the year and have 4 properties in thenext 12 months.

My plan is to use the cashout, HELOC and LOC as down payments for the conventional mortgages to buy my first 4 rentals and use none of my cash.

what do you think about this financing strategy? It it something you would do?

Thank you

I forgot to mention this: The plan would be to use the Heloc, cash out refi and/or loc as the down payment for the mortgage that they offer. Total of the 3 would be 240k that i can use as down payment. I would work with different departments of the same bank, take money from one department, pay the other and get up to 4 rentals. None of my own money used.

Hello BPers,

I'm a newbie, planning on buying my first SFR in the next 4 months. I'm working on the financing with my bank and I already have my eyes on a property.

Here are the financing options offered by my bank:

1. cash out refi. I have about 100k equity on my house and my bank is offering to refinance the house, apr 3.75% on 15 years or 4.75% on 30 years and give me 60k in cash. Now my mortgage is a 15 year at 3.5%. I read that cash out refi is only worth it if the interest offered is lower than the original one. 

do you think I should accept this option, considering that i also have to pay the refi fees? I'm inclined to say Nay!!!

2. They also want to offer me a HELOC with a 100k limit. I dont know the other details yet. we'll talk about it tomorrow.

3. They plan on giving me an unsecured LOC with 80k limit.

4. Last and more importantly, they are offering up to 4 residential type mortgages at less than 4% interest rate for 30 years. 

My request to the banker was very specific: I want financing options with almost 100% financing. This is what she offered. What do you think? How would you proceed if you were me.

I'd like to buy my first property before the end of the year and have 4 properties in thenext 12 months.

Thank you very much in advance