All Forum Posts by: Ishviyan D.

Thanks for the responses. @Wayne Brooksthat's a great point. I didn't know that the fannie cap considers all properties. 

@Eddie T.Hi neighbor. Indianapolis and kansas city

Ralph R. I'll keep on chugging till I find that lender with those terms. The ones I've spoken to offer 4.6% but fixed for 5 years and then the rate adjusts significantly higher. So it's great for 5 years but then the cash flow numbers don't look that spectacular afterwards

I could be mistaken but I believe Fannie imposes the 75% LTV requirement. I've come across lenders who would do 80% and 90% but it wouldn't be a fixed rate loan. If I recall correctly, the terms offered were 4.65% 5 year adjustable rate mortgage, and after 5 years it would adjust to the prime rate plus 2%. That would really eat into the cash flow. There may be lenders out there who can offer better terms though...just need to dig for them

@Ralph R.those are some great terms. Just to clarify, are you using a portfolio lender or straight up commercial loans? In the BP book on rental properties, it says portfolio lenders offer loans between 7-9%. So I'm guessing the one I found offering 7.5% is pretty typical? 

Greg Anderson I've had a great experience with t&h realty if you want to check them out

Just a thought, but have you run the numbers to figure out what your total cash flow would be if you do refinance out of Fannie rates and into a commercial loan? Commercial loans and portfolio lenders charge far higher rates. I was offered 7.5% fixed 30 year by a portfolio lender that required no seasoning, but when I ran the numbers, I realized I'd need 2 houses through a portfolio lender to match the cash flow that one house would generate if it were on a conventional Fannie loan. I'd take advantage of those remaining fannie slots as much as I can before pushing portfolio lenders, unless you get great terms.

Kay Ferdous regarding #1, typically between 70-75% LTV in you are talking about refinancing into a conventional Fannie Mae loan. Some banks may offer higher than 75% but the catch is that interest rates would be higher on the loan since these won't be Fannie loans.

@John ThedfordThank you. Yes I agree. When I ran my numbers, it would take 17 months of my property's cash flow ($350 p/m) to pay off the HML ($6k). The only scenario I see it being worthwhile pursuing such a trade-off is if the cash-out refi of the property returns more than 100% of the invested cash. Otherwise the investing strategy just going to be a money pit for a long time.

Thank you for your response @Ryan Dossey. @Account ClosedI'll send the details over to you