All Forum Posts by: Christina R.

Thank you, Tom. Regarding your last point, does modifying the HELOC and refinancing it to get a larger loan have added closing costs/new appraisal? Do I have to wait a set amount of time after this HELOC closes before modifying? I guess depending when it is done, the rates could be higher by then.

How does a third mortgage work? I'm thinking it's a second HELOC application which includes my husband, but probably qualify for less if they see I have a HELOC already.

Thank you for the insight!

I bought my 2 family property when I was single, deeded to myself. Now married, living there. I refinanced for an interest rate in the 2s last year, still in my name only. I am now closing on a HELOC to tap into the equity in that property. The amount the bank is giving me is lower than what I applied for, since my DTI is borderline (they are not using my husband's income since he is not on the deed). The appraisal came in lower than expected too. I was confused by the comps as much better, recent comps were available. The loan processor said it's not worth it to appeal the appraisal as my LTV is fine. It's my DTI that is the issue.

I am a little disappointed because it would be nice to have more equity to tap into in case we ever need it. I'm now wondering if it would have been wise to quitclaim deed the property to me and him before applying for the HELOC, so that his income could have been included. As an aside, I had been thinking about estate planning now that we have a child together. To my understanding, the house would go through probate should something happen to me so I thought adding him would be beneficial in that hopefully distant scenario. Is the quitclaim deed to us even possible, or would I need to refinance and lose my 2s interest rate?

To be honest, I am a little nervous adding him as owner. Nothing against him - this property is just something I owned pre-marriage and kid, and just thinking worst case scenario if we ever got divorced. I would say 85-90% of the equity is from my own money. I handle all finances and he is the sweat equity for repairs, etc.

If I do close on this HELOC, and for some reason we did want to tap into more equity, are there any options to get a second HELOC with him on it? Or some other creative financing ideas? Just seems like I am leaving available equity. Of course, I don't want to overleverage us as well.

This is a new process for me so just curious any thoughts and ideas I may be missing. Thanks!

Hello,

I am looking to connect with real estate agents and brokers in New York City. I've always loved real estate! I bought my first investment in my 20s in NYC. After getting subpar service from some agents in my home search, I decided to get my real estate license, while still working fulltime at my W2 job, to educate myself about the process. I worked part-time in addition to my 9-5, sponsored by some small firms that did not provide much guidance or mentorship. Ultimately, with time came hands-on experience and knowledge, building my contacts as well. Then, I focused on buying more properties for myself for cash flow, as well as raising my young child, keeping the stable but boring 9-5. 

I now have the itch to help clients again, but wanted to pick the brains of any NYC real estate agents or brokers... particularly the day to day, what to expect if doing this full-time. No matter what I do, I feel my passion is in real estate, whether that be as an agent or in some other capacity. I feel I am at the stage in my life where I want to pursue this more and often wonder what could have been if I went all in or was sponsored by a big brokerage with a known brand.

Can anyone provide insight? Happy to connect privately too. Maybe we can figure out a way where my skills can help with any projects you may have currently as well. Eager to dive in and get to work. 

Hello,

Does anyone know what the code is for a second floor apartment in a house in NYC for means of egress. Right now, there is a front door exit leading to stairs to ground floor and two back windows located on the second floor. There are windows near the front door exit but with security gates on them. Are they grandfathered in? 

Thanks!

Hello,

Does anyone know the NYC code for exterior handrails for a two family dwelling? Specifically the concrete stairs are on the side of the house leading to a backyard with four risers. Wondering if legally, have to install handrails or is it grandfathered in. 

Thanks!

Hi Joseph,

I would love the info. Thank you!

Are you using a big bank or smaller one? Are the closing costs pretty standard?

Hello,

I am interested in taking equity out on a paid off investment property in Philadelphia, PA. I bought it about 6-7 months ago with my father and am unsure what options I have at this point, and how favorable interest rates would be for an investment property. There is a tenant in place with option to renew in December. Ideally, the goal is to use the cash toward another investment property. 

I internally debate whether this is a good idea. On one hand, having the mortgage interest deduction against the rental income seems like a positive (but then closing costs seem to negate that benefit.) On the other hand, having rental income without having to worry about another debt is nice, but then the equity is locked up in the house and no tax benefit. 

What are my options for taking the equity out at this stage? I've been looking into HELOCs, home equity loans, cash-out refis, and cross-collateral loans. 

I understand that any of these products are subject to my debt to income ratio. I have an owner occupied duplex that generates some income but puts my DTI somewhat close to the max. My father also has a mortgage for his owner occupied duplex. As an aside, my husband and I have a 5 year plan of perhaps buying a second home to live in and turning the owner occupied duplex into a complete rental. I would prefer not to sell that duplex if I could swing it. I'm also thinking since he has no debt, he would help with any mortgage we get for the second home. In that sense, I wonder if I should just do nothing at this point with the PA rental.

I would appreciate any advice or suggestions!

Thank you.

@Chris K. Thanks Chris for the information. The more I think about it, i'm not sure if the LLC creation is the best route. Eventually, we want to do late financing and take some of the equity out. A loan officer told me the rates would be higher and could be harder to get the loan with the property being in an LLC. It could also call the loan. However, last year I was able to put my primary in an LLC and personally guarantee the loan. Of course, i did all of that in advance whereas now the contract for Philly has been signed and i would have to do a quitclaim to transfer it to LLC. Seems like more of a headache especially if it means another transfer tax.

Speaking of, you brought up a good point about the transfer tax. I see it is 4.28% in PA... wow! I don’t see anything in my contract about who pays this tax nor have I received the settlement statement for closing next week so that’s a new concern of mine. Thanks for bringing it to my attention.

I think you're right about the joint account so as not to commingle funds. Since i don't think i will be creating an LLC, i may just get a joint personal checking since i don't have an EIN for this. Worth it to get a separate credit card also or just save receipts for related charges on my current credit card? Since the house won't be in an LLC, isn't it considered "personal" even if i have everything on two different "personal" cards? Figured I would ask here before the bank tries to sell me on a new credit card!

@David Cruice Thanks for the reply! Interesting. I didn't think using the same LLC for both properties would be possible since my father is not a member of the LLC. It's just me, single member. I also am unsure of the process to add a 2nd property to an existing LLC.

Additionally, I'm not sure if I want to mix the two properties together. I'm thinking worst case scenario if something happens on one property, I don't want the other property on the line. 

I do think a separate account is in order, with some working capital, as you suggested.