All Forum Posts by: Gustavo Gonzalez

Hi Stephanie.  

What I've been told is that Fannie Mae requires a FICO of 720 and unfortunately my score is just below that.  In my credit history I unfortunately have late payments (mortgage and car lease) that extended beyond 30 days.  Theses dings on my credit history go back 2-3 years and since then my accounts have been pristine.  I do have 10 mortgages which (investment properties and my primary combined) - perhaps it is a debt ratio like you mentioned?  Not sure. 

Gustavo

Hi All:

So in my interest in apartment complex investing (I'm looking to scale to 20-40 units) it occurred to me that I'm paying water and sewer cost for the duplex, triplex and fourplex properties I have. 

Has anyone implemented RUBS on these 2-4 unit properties?  Pros vs Cons?

Thanks,

Gus

Thank you all!  Great input.

Marty - yes by niche I mostly meant 20-40 units apartments with some value add opportunity.

Gus

Hi everyone!  

So I currently hold a small mixed portfolio of SFR, duplexes, triplex and fourplex in Bakersfield, California but I would like to scale up to apartments. For my first apartment building I'm looking into 20-40 units.

So in listening to a real estate book by Joe Fairless, he recommends establishing a relationship with a lender first and specifically that this lender specialize in the type of apartment investing that I'm looking into.  

I live in California and I plan to invest out of state but I haven't fully decided where.  I've considered Texas, Arizona and Kentucky but seriously I have no idea just yet.  With that said, my question is should I use a California based lender or should I focus on finding lenders in the areas of potential investing?

Any and all feedback regarding getting started with apartment investing is much appreciated. 

Thanks, 

Gus

Hi all:

So I've posted a related question on this topic before so this is somewhat of an extension of that. To summarize, I have a total of 9 investment properties 2 of which have high interest rates at 7.875%.  One property is a duplex and the other is a fourplex.  I've tried tirelessly for the past 2 years to refinance to a lower interest rate but because my FICO is under 720 (715) I'm unable to refinance.  I have tried 3 different lenders and they all have come back with no success.   

So now this 3rd lender that I'm working with was able to find a loan 5/1 ARM at 4.5%. Adjustable rate mortgages make me uneasy especially since both of these properties I plan to keep for the long run. My lender of course says that once the 5 years are up I will be able to refinance - that's tough to believe because I haven't been able to refinance for the past 2 years.

So the question that I have is should I keep my high interest rates for now (properties are still able to cashflow) and try to refinance at a later time hopefully when my FICO is above 720? Or should I take the chance and go with the 5/1 ARM and try to refinance later? Another option is that I can take the opportunity of a lower interest rate with the 5/1 ARM and pay off both these properties in 5 years?

Thoughts/suggestions?

Thanks you!

Gus

Great!  Will contact you ASAP.

Gus

Ruth thank you!

Hi All:

I've been let down buy 3 lenders now and it just dawned on me - let me check in with the bigger pockets community.

In short, I have two investment properties with interest rates at 7.8% that I have been trying to refinance  for the past 1 year without success. Three different lenders have come very close to helping me refinance only to comeback with saying they can't go any further because my FICO score is not above 720.  One property is a duplex and the other is a fourplex and although they are cash flowing even with this interest rate, I would ideally like to lower it.  I have a total of 9 financed properties.

My FICO score although not excellent, ranges in a modest 698, 715, and 729.  Should I give up on trying to refinance?  Is there a lender out there that I should be talking to?  

Thanks,

Gus

Ciprian:

We are practically neighbors!

My long term plan is to move up to a primary residence in the $1,500,000 to $2,000,000 range using the equity from my primary residence.  Ideally I would wait until we reach the sweet spot $500,000 tax fee benefit to use towards the purchase of that dream property. 

My wife's property mortgage is actually $2000 and some cents so we may just consider riding the market rent and see if we can maximize that in the meantime.

Thanks,

Gus

Tyler:

Pulling equity from our primary house for other investments is a good option but one that still makes me nervous. 

Thanks,

Gus