All Forum Posts by: John Kernen

@Stephen DeThample

Everything says I have to have hardships related to covid. I have not had any employment hardships.

@Caleb Heimsoth

Thanks, I am going to explore the cash out refi as an option.

@Mike Dymski, wise encouraging words. Thank you

@Caleb Heimsoth

What are your thoughts on a cash out refinance vs a Heloc? Originally planned to refi and then get a HELOC. Would a cash out refi be a better alternative?

@Caleb Heimsoth

I am I the middle of refinancing my current residence right now, for some reason I didn't want to involve it but I do have a large chunk of equity...I will look into this as an option. Thanks

@Joe Villeneuve I am a bit discouraged but not beaten. I have been looking for a deal for a while now. Everything I find I really feel is a deal gets snatched up by a cash buyer before I can make a move. I do think it is better I get out of this one. I learned a lot just from getting this far. I will regroup and take another crack at it.

@Greg Scott the lender is giving me the 30yr term, but requires 25% down. I planned to use 50k from my 401 in order to pay the down and rehab. It's the payback requirement on the 401k that is going to screw me up.

I have been looking for ther right deal for some time now. Dragging a realtor around to every house in town. The market is tough right now but I keep hanging on the thought that if I don't get started I never will. I had a pre approval from a bank, planned take a loan from my 401k to cover some down and rehab costs. I found a house that needs a bit of updating and probably not the best deal as it was on the MLS but at least not a complete basket case for my first deal. I got my offer accepted and started the process. My lender informs me that instead of the 20% down I will have to do 25% because the purchase price (125k)is less than I originally asked for on the pre approval. Ok not a big deal I planned to pull 50k from my 401 for down and rehab. I start to work on pulling the down money from my 401k and find that because this is not my primary residence I will have to pay the loan back in half the time I had expected. This puts me paying back the loan an mortgage at about 1350 a month on a home that should rent for about 900 per month. Don't think this is a good move...I also don't feel that pulling any money from my 401k is a viable option going forward. Very discouraging and I feel bad for wasting the time of those involved. I am still determined to get the first deal. I am in the middle of refinancing my primary home and may look to pull some cash from a HELOC after that settles. Had anyone else had similar issues? Anyone have any creative ideas or suggestions?

I have a potential deal I would like advice on. This would be my first deal. 4bd 2bth SFR it is in good condition but dated (70s era). House in its condition are selling between 200-240k. I can buy the home as is for 200k. I can do conventional financing and put 25% down pulling the down from my 401k. I really want to do a BRRRR but I don't think that is do-able with this house for what have to give for it. I still think that I could clean it up, spruce up the paint and flooring and rent for about 1400 per month. This should let me cash flow a bit and get me started. My concern is that this will tie up all my cash and credit into this deal an not give me much opportunity to borrow against it for following deals.

I have been looking at properties left and right, most need major work and they are smaller and older. They are still selling quickly for 150k. I feel like this is so much more house for 150k and if I act now I can get ahold of it before it goes on the market. Any insight is appreciated! I really need to get the first one under my belt! Thanks

@Trevor Aydelott I do live in Pueblo West.  Looks like you just bought that house in March?  Did you just purchase to flip?  What part of town is it in.  If i can help you with anything being that you are not in the area, let me know.  Thanks