All Forum Posts by: Evan O'Brien

@Joe Villeneuve Thank you for the information!

@Joe Villeneuve I understand. The question I was asking was more of a general question if it is possible to refinance a seller financed property into a conventional mortgage with more desirable terms since I’m relatively new to Biggerpockets and Real Estate Investing.

What are terms that you’ve seen for interest rates and the length of notes through seller financed financed properties?

I’ve still yet to purchase my first rental property since I’m currently saving up for a down payment for my first property but if you are interesting in analyzing a deal that I’m interested in purchasing to determine if it’s a good deal and that the numbers work that would be greatly appreciated. Thank you for your time and the information

@Joe Villeneuve Sure, let's say the property is a SFH and the seller agrees to sell the property for $120k with a 10% down payment of $12k with an interest rate of 7% on the mortgage with a 20 year note (monthly payment for the mortgage is $837/mo). Can you refinance the mortgage with the seller into a 30 year conventional mortgage through Fannie Mae or Freddie Mac while the remaining mortgage balance is $105k after 1 year of purchasing the property and the property appreciates 5% resulting in the value of the property being worth $126k) to an interest rate lower than 7% that was proposed with the seller? Such as 5% interest rate on the conventional loan?

@Joe Villeneuve hypothetically let’s say that I got a low down payment for a property through seller financing at 10% but the interest rate on the mortgage was 7% on a 20 year loan. I wasn’t sure if it would be possible to refinance the property into a conventional mortgage with a 30 year loan with a lower interest rate

Hello BiggerPockets Community. If you purchase a rental property through seller financing, is it possible to refinance the property into a conventional loan? If this is a possibility, what steps would need to be taken to refinance a seller financed property into a conventional mortgage?

@Cameron Tope awesome, thank you so much!

@Wesley B Williams thank you so much for the info!

What are some websites/apps that you can market your rentals on? Are Facebook marketplace and Craigslist appropriate places? Any other suggestions?

@Martin Grizzanti hey, thank you so much for reaching out! I’ll send you and email with some questions that I have about investing in the Buffalo/Rochester area!

Hello BiggerPockets Community, I have a question regarding building equity in a property by rehabbing a property and doing a cash out refinance after the seasoning period since the property has been purchased has been completed.

Hypothetically speaking, let’s say you purchase a rental property for $200k with a 20% down payment of $40k and completed $20k in rehab costs to update the property and get it rent ready.

Once the seasoning period ends, an appraisal is completed on the property for the cash out refinance and the appraiser determines the ARV of the property to be $255k, does this mean that the amount of equity in the property would be $65k? (Based upon the down payment and the amount spent on repairs completed on the property). Or is the amount of equity in the property based on the appraisers determination of the ARV of the property? (20% of $255k would be $51k in equity, not including principal pay down of the mortgage).

And let's say you complete the cash out refinance on the property at 75% LTV, would the correct amount of equity you'd be able to pull out of the property be $31,250 (75% LTV of $255k= $191,250 - $160k amount owed on original mortgage)= $31,250) any information or feedback would be greatly appreciated!!