All Forum Posts by: Jack Pyle
Jack Pyle has started 1 posts and replied 5 times.
Post: My First Property... and what to do with it
- Lender
- Anywhere, USA
- Posts 5
- Votes 4
Quote from @April VanCleve:
Quote from @Jack Pyle:
April Congrats! That is awesome. If you can get into the investment property for limited down payment (10% rehab loan), you can save some of your money, renovate the property and then do a cash out refi to get some of your money back out. As far as short term vs. long term that is a dilema. I have personally done both. You'll make more money on the Airbnb but it is a chore to manage. Good idea on the pet friendly! We changed to that this year and have definitely seen our bookings increase. If you decide not to manage, then the managment fees are usually 20% of the income. Long term rentals are easy to manage in my opinion if you are local to the property. You're certainly asking all the right questions. Great job!
Thank you so much! It's good to hear I'm asking the right questions! There's a fine line between being responsible about things and analysis paralysis... I'm trying to just take action.
I love to clean and host so I'm hoping the fact we are literally next door will make the airbnb option easy! What's the best/fastest way to learn about that option? It's the only one (aside from a little Robuilt on youtube) I haven't really dug into since the plan at first was a flip.
Yep! YouTube and TikTok is where we learned. And forums like this.
Post: My First Property... and what to do with it
- Lender
- Anywhere, USA
- Posts 5
- Votes 4
April Congrats! That is awesome. If you can get into the investment property for limited down payment (10% rehab loan), you can save some of your money, renovate the property and then do a cash out refi to get some of your money back out. As far as short term vs. long term that is a dilema. I have personally done both. You'll make more money on the Airbnb but it is a chore to manage. Good idea on the pet friendly! We changed to that this year and have definitely seen our bookings increase. If you decide not to manage, then the managment fees are usually 20% of the income. Long term rentals are easy to manage in my opinion if you are local to the property. You're certainly asking all the right questions. Great job!
Post: When to Refinance
- Lender
- Anywhere, USA
- Posts 5
- Votes 4
Rates are going to bounce between 6.5% at the lowest to 7.5% this year. You can't time the market. They aren't falling back to 4%-5% range based on all current economic factors. You can get cash out refi at 6.625% right now with some points at 70% LTV with 780+ FICO. > $150k loan amounts.
Quote from @Hannah Vohs:
Looking for the best terms in the market? We've got you covered! Check out our latest offers for DSCR Rental and Rehab Loans:
✅ 6.25% - 30-Year Fixed, 80% LTV Purchase
✅ 6.625% - 30-Year Fixed, 75% LTV Cash-Out Refi
✅ 5.000% - Lowest Available Rate
🔨 Rehab Loans - 90% Purchase Price | 100% Rehab Amount | 75% ARV - No Experience Needed!
Post: The Fed lowered Rates by 1/2%!! Why aren't mortgage rates coming down.
- Lender
- Anywhere, USA
- Posts 5
- Votes 4
Many people tend to think that the Federal Funds rate controls interest rates. The Federal Funds Rate is the overnight lending rate that Federal Reserve Banks charge each other for overnight lending. (We individual investors or Long term Lenders can't borrow at that rate)
Mortgage rates typically follow the 10 yr Treasury yield. This is because Mortgage backed securities are in direct competition with investors looking for "safer" investments backed by the full faith of the United States Government. Investors pick MBS investments for a little more risk and a higher yield.
The reason rates didn't drop much last week is because they already did! Take a look at the 10 year treasury yield on Aug 29 3.91%. The day the Fed announced 3.68% and today 3.78%. Anytime the media spits out news coverage on rates, it has already been baked into the market from Wall St. Investors.
With that being said, the trend is our friend and rates are moving in the right direction. It's just not going to drop dramatically overnight.