All Forum Posts by: Karen Mills

Our neighbors house is going on the market in two days and we can offer cash but would want  to refinance fairly quickly.  Need to move quick as I know the market is bonkers (Eastern North Carolina)

3 questions-

1st question- about DTI- we have 4 rentals-3 with very little cash flow but longevity (all purchased over 10 years ago) and we are at least not losing money on them (yes, need to work on raising rents etc, all long term renters). We bought a 4rth house in September but instead of a cash out refi on it we are refinancing another rental property that had more equity. We put in 84000 in the new, paid off property and are renting it out for 1200/month (STR). To make a long story short is our DTI or other factors going to cause us problems to cash out refi this home (definitely worth 239,000 and if doesn't appraise for that we can pay the difference). We otherwise have no "bad debt", (no car loans etc). The credit union I am doing the rental refi at said my DTI was close but I am doing that refi only under my name. (couldn't do it with our other lender (for our primary) due to the Fannie Mae changes)

2nd question- approaching our recent lender who we just refied out primary home with .  I want to ask our local lender about this tomorrow since he knows our financial state best but I am hesitant  because we just refinanced our primary property with him with every intent to remain here until speaking to our neighbors tonight. In fact we put an offer on a place last week that would have made this purchase impossible but it wasn't accepted.  Can I approach him or best not to burden him with this info? Refied literally last week. 

Numbers if needed

New house 239000. 

Current home of 12 years- -worth about 220,000- just cash out refied and getting about $40, 000 out, financing 160,000. Would rent out (STR) if this all works out

Rental properties 1 worth 120,000 owe 43,000  one worth 84, 000 owe 43, 000, one worth 130, 000, refinancing but will still have 35% equity, one paid off (worth 84000)

3rd question- have about 5 bitcoin- can I this to help with our DTI?

Highest credit score was 850 lowest , high 700s

Thanks to anyone willing to read this and respond!

Curious, did you sell? 

Looks nice so not sure, how did you decide on the rent amount?

@James Nosack 

BRRRR/buy and hold. We have a modest equity line of ~ 75, 000 and I had just took a loan out on my 401 K before the whole COVID hysteria began for financing but I was already irritated with myself for putting the max into my 401 K ~ 10 years on a part-time nurse salary so I jumped on the chance to draw some money out without a penalty. Wasn't interested in the terms offered when I inquired about refinancing my rentals so that is out. Have until Sept to decided if I want to take more out.

I did a 20,000 hardship withdrawal today. I was told I couldn't use my spouse's decreased income, but my hours as a part time ER nurse have decreased somewhat so was able to qualify.

Can still withdraw up to 100,000 before Sept 30, 2020. No fees or penalties. I went ahead and paid 15 % federal tax and 4 % NC tax  will pay the rest later- wondering if that was a good idea.

Have made cash offers on 3 SFH (planning on using our equity line) with no luck and I think the market is going to have to cool for me to find anything that will cash flow well (after I refinance).

I am also considering a 401 K withdrawal- I put the max in for years and so when  I got the real estate bug again in 2015 I didn't have any liquid reserves.    I exchanged  all my stocks for bonds, t notes  etc.  March 8th  and  I'm just sitting on it- afraid to put it back in the stock market for the foreseeable future with all the funny money the federal reserve is putting into the economy. I am thinking the tax liability would be worth having more $$ to buy rental properties (have 3, all purchased before 2008). I could also take out a 401 K loan, but my main questions is (I'm going to try to find out tomorrow) will a loan prevent me from being able to do an actual withdrawal if I decide to do that before the deadline. My husband is a professor but won't get a summer school salary this year so I will qualify. 

How about give the renter 6 months notice (can't evict right now anyway) to move out or sign the new lease with the new higher rent.  If he is a good renter you might consider keeping the rent a  lower than the market to keep him there.  

If she leaves early won't she just lose her deposit?

Could you ask your new management company to knock on the tenants' door and ask what their plans are? The new company should also be able to find out what's up with the old company. Any luck?

In ~ 2008 thousands of foreclosed homes were bought up by large corporations that have $$$ to buy off politicians. They have the money to buy off politicians who then legislate the non-elites out of their homes through foreclosures (ie Blackstone). I believe this kind of legislation has nefarious intentions-so to read others sanctimoniously write about how we need to do our part for the greater good demonstrates ignorance about the growing corruption which leads to money/property going out of the hands of small LL, the lower classes (ie not upper 1%) and into their wallets of the elite, particularly over the last 30 years.  One day we will all be renting from Blackstone with this kind of legislation.  I for one am in a good position with my renters, (I hope) as I only have 3 properties, 2 occupied by retirees (probably better of than myself, and I don't think likely abuse the system) and another younger couple who if they tell me they have lost their jobs they can come work for me.  But being upset with these kinds of moves is not whining- it's a reaction to how our country is becoming increasingly controlled by corporations that do not have anything but their bottom line as a goal.  Remember trillions of dollars are being used to bail out big corporations, but many small investor will get, not accidentally,  squashed.