All Forum Posts by: Hamdaweh Sulemana

Thank you all. This is my first deal. I have a well paying full time job and I also have a lot invested in stocks.

I want to invest in real estate for diversification purposes and also earn additional cash flow.

After all your advice and comments, I believe I should have the house appraised and keep looking. It may sound sad to let that equity keep wasting but an extra $1000 a month is not bad for a investment that's going to appreciate.

Thank you

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@Pat McCandless: Yes I am managing it myself. What does CFA mean? What do you suggest?

Thank you

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@Kevin Siedlecki: I don't expect expenses to be high since most things in the house are new and covered by sears warranty. How should I calculate the cash flow if I am in for 70K by your strategy?

Thank you

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Originally posted by @Pat McCandless:

Hamdaweh Sulemana did you ask what they based their 105k cash out refi on? If you based 70% out of what your investment was that would get you 122.5k. That's off of your investment not the ARV which is most likely more. So it sounds like you may need to call around, there may be a better deal out there. Although I am not experienced with non seasoned refi's

Thank you

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Originally posted by @Matt Turbitt:

I'd say it's only an ok offer not a good or great offer in any way. What would be the current value of the home? you have 175 in so 200k? He is not offering you a 'no seasoning required' loan like you'd want in a BRRRR. He is offering you just a standard cash out refinance you can get anywhere. He is loaning based on your original purchase price not the new value. and he is making you keep 30% equity which is standard but 20 and 25% are possible too. I'd keep looking and see what else is out there.

The house has not been appraised yet after all the fixes but Zillow has it at 178K. Maybe I should be asking him if is a no seasoning or standard cash out refinance, right? Will that make a difference?

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Originally posted by @Daniel Karbownik:

well yea hell get 105 out but for being in for 175k to only get 105 out is leaving a huge chunk of cash in the deal. Where's the equity????

Something is funny about these numbers. You're in for 175k and can only rent it for 1k/month? That sounds terrible.

What's the market value of the home? Based on the loan you were quoted, I'm inclined to think it's less than 175k. I think you grossly over paid for the property, or you are grossly under renting it. Somethings not adding up here

There is no way of getting 100% out right? the no-seasoning cash out refinance has a limit of max 75%.

We may have rented it out for a $100 little less than what Zillow estimated. So we are in right range. U may be right Daniel, 150K for 2 bedroom/2 bath house foreclosed. Had to replace carpet, bathtubs, kitchen sink, new appliances , add ceiling fans.

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Originally posted by @Daniel Karbownik:

the loan is less than you are in for. You won't get any cash out. Am I missing something here?

We purchased all cash.

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Hello All,

I purchased a foreclosed home cash for $150,000 about 6 months ago, spent $25,000 on fixes and have it rented out in an A community @ $1000 a month in Arizona.
I want to get some of that cash/equity to use as down payment for a second rental property. I spoke to a lender about the no seasonings cash out refinance and here is what I was offered: 4.75% 30 yr fixed possible loan 105,000, principal and interest and tax $700.

Is this a good deal? Is it possible to get a better deal somewhere with another lender? What are your thoughts?

Happy Thanksgiving!

Hamdaweh

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Thank you

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We purchased our foreclosed property cash and fixed it up and have it rented out. Our goal is to own 5 rental properties. So 4 more to go.

We do not the resources to purchase another all cash property. So we are looking at the best way to move forward. Either get a mortgage or loan and use it for the next 2 more properties.

What kind of loans are available to us if we need to use the current rental property to secure the loan?

Thank you

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All Forum Posts by: Hamdaweh Sulemana

Hamdaweh Sulemana has started 2 posts and replied 10 times.

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Post: Loan on Cash paid Property

Post: Loan on Cash paid Property