All Forum Posts by: Jaydeep Deda

3.375% is really low. But is it on cash out on rental? 

I am going through Homebrige

Anyone did Cash out refinance on Signal family rental?

I am trying to do cash out refinance on single family rental and getting high rates 4.37% with 2 points. 

My mortgage guy is saying rates are high because of COVID. Wanted to know if anyone did cash out in last couple of weeks and what rates they got.

Appraisal came out $254000

75% cash out (approximately $190000)

I have 800+ credit score 

Property is located in Hartford county Connecticut. 

Garden style apartments with off street parking (no covered parking)

Building Attributes: Exterior Walls are Brick/Masonry and Pre-Fab Wood 

Land 2 Acres

Total Units: 24 (1 bedroom- 18 units; rent $850) & (2 bedroom- 6 units; rent $950)

Taxes $40,000/year

Amenities None

Facts:

What I like about this property is owner was a builder who built it in 1970, he passed it on his son in 1993 (son must be in late 50’s). So family built and owned. Well maintained, might require minimal updating.

Current owner is unsure if he wants to sell and wants to get realtor involved (I am assuming he wants to find out current market value and have smooth transaction)

How should I go about convincing him? Also, what would be considered a fair market value for such kind of property so that I am prepared before I offer.

Please let me know if I am missing any information.

Scenario:

I started buying condos beginning 2011. Each year I bought 1-2 properties which needed extensive work.

To build my rental portfolio and offset taxes, I used to buy properties that needed work that was equivalent to my rental income. For Eg. Property A (Rental income $5000/year) + Property B (Rental income $5000/year)

I would buy Property C that requires $10,000 worth of work so that I can list that as an expense and break even on taxes.

Due to this, the taxes I had to pay were negligible. Besides that, I don’t have W-2 either (quit my job last year. Able to survive from savings)

Facts:

Out of 10 properties only 1 has mortgage, rest paid off.

All properties are under my name and have no LLC. (Which I should have done!)

Issue:

I am unable to get good rates for mortgage as I have no income on paper.

Question:

Is there a way to get better rates on mortgage?

What are my options