All Forum Posts by: James Harris

Hi Nana, welcome to the BP community! Cape Canaveral, Cocoa Beach, and the surrounding areas of Melbourne have proved to be really good for STRs (my experience anyway), so you can't go wrong if you've run your numbers right. Not sure about VA funding as I've "heard" both yes, and no as far as funding non-warrantables. The Mortgage Firm in Melbourne has helped me with non-warrantable condos in Cape Canaveral...give them a shot. Reach out to me privately if you want other lender options (like DSCR). Happy to help!

Good stuff Doug, thanks!

Hello RE professionals! Question regarding this scenario: Have an inactive (voluntarily), valid Florida RE license that I obtained a year ago for personal enrichment as an investor...had no desire to represent clients, and still don't, if I'm honest, so never hired on with a broker to activate it. However, I have now been asked by a family member to represent them for the sale of properties in Cape Coral (Lee county) and Punta Gorda (Charlotte county), and with the purchase of a new home in the Tampa area. I'm based in Brevard County. How does one go about this? Refer to brokerages local to each of the respective properties? Any and all advice/comments are welcome, and I thank you all in advance. Cheers!

Mike Willis Roofing and Construction in Melbourne. They’ve done few properties for us in Brevard county, both residential and commercial…we were satisfied.

 Good stuff Barrett! Sent you a DM as i would like to get a current Elevation Certificate on my waterfront lot in SE Cape, and see how feasible it would be to build above the "forced flood insurance policy". I'd rather buy fill now than a flood policy later if possible

 will do, thank you!

Thanks for the input Bill B.

Called upon a local mortgage broker for a rate quote on a 30-year fixed mortgage (cash out refi). I'll preface this with the fact that I have used this broker before and give them high marks. The particulars of the deal are as follows: 200K cash out refi on my primary residence (SFR) which is mortgage-free and conservatively valued at 280k (LTV 75%). DTI is right under 60% with a decent credit score of 700 (no late payments, stable residence, stable employment, and no defaults…current debt is the ONLY anchor on my score). Purpose of loan (expressed to broker) is to pay off all current debt…90k HELOC, 50K mortgage (6%apr) on rental property (vacant/remodeling), and 30k credit card debt…basically a consolidation of all my obligations. The rate offered was 4.6, which seems high in the current market. When asked why such a high rate, the answer (expected) was DTI.

The question is this: is 4.6 on the higher end of the spectrum for my position? Given that my credit score will improve subsequent to (and as a direct result of) the loan (DTI falls down to around 26% by my math), why is this not given consideration? Are rates for cash out refi loans typically higher in general? Is it unreasonable to expect a rate under 4 given my financial picture? I understand the lender's exposure here, I think. They could cash me out the 200k, I decide to skip paying off the debt as intended and instead, head to Vegas and throw it on black….6 feet away from all other players at the table, of course. But the more realistic outcome (given my history) is that I pay off the debt as intended, cut my DTI down to 26%, and begin putting my next deal together. How do I mitigate this risk to lender and get a rate under 4? Any way to earmark the loan proceeds to outstanding obligations? It should also be mentioned that my condo has equity (100K+), and once rented adds another 2K minimum to income (driving DTI % down even further).

Oh, and hello to you all, I’m James (real estate newbie)…brand new to BP and first-time poster. Such an incredible amount of info and knowledgeable investors here! Appreciate any and all feedback, cheers!