All Forum Posts by: Kevin Akers

Hey @Kevin Akers! I'm curious why your bank rate recently increased? Did you have an ARM that adjusted? The decision about the cash out refi all depends on the different terms from the lenders. Have you gotten any term sheets or commitments about this yet?

What would help the community is for you to share as much info as you are comfortable, but the appraised values, current loan balances, and the current rents would be a good start.

Jaycee! Thank you for your input.

Property 1

Laon balance 51K, appraised for 127K, rent $1095

Property 2

Loan balance 55k, appraised 126K, rent $1195

Are these 1BR or 2BR?

The are 3 bedrooms

0 Votes

Charlotte, North Carolina

Quote from @Brittany Minocchi:

Quote from @Kevin Akers:

Quote from @Brittany Minocchi:

Can you qualify full doc (meaning with employment history, income, DTI, tax returns)? If so, I'd look into that before a DSCR loan to avoid the prepayment penalty DSCRs carry. If you can't qualify, DSCRs are a good option but I normally advise to stick with a 3-year prepay (or less, depending on pricing). Closing in an LLC is also allowed with DSCRs if that's a concern. If you have an immediate need for a large sum of cash, I'd lean cash out. If not, then I'd explore a line of credit, but that will also be a full doc qualification and you'd still have that variable interest rate. Happy to chat if you think of any other questions!

Hi Brittany!

I have already been fully qualified for both the line of credit and DSCR. The only reason I want to do a cashout refi is to get rid of my current high interest rate.

What is your rate currently? And you said it’s an ARM?

Sorry for the late reply. One property is 9.5% and one is 7.25%. I am refinancing the 9.5% for sure and am in the process now.

0 Votes

Charlotte, North Carolina

Quote from @Brittany Minocchi:

Hi Brittany!

I have already been fully qualified for both the line of credit and DSCR. The only reason I want to do a cashout refi is to get rid of my current high interest rate.

0 Votes

Charlotte, North Carolina

Quote from @Elias Halvorson:

Quote from @Kevin Akers:

Hi everyone!

I have a quick question and would love to hear your thoughts. If you have a couple of rental properties with some equity, and you're looking to tap into that equity to fund more investments, what would you do? The current loans on the properties are with a bank that offers a flexible rate, which has recently increased. Would you consider doing a cash-out refinance into a 30-year DSCR loan, or would you opt for a line of credit instead?

Hi Kevin,

I would look into both. Local banks/credit unions typically offer the best HELOC rates, but few of them offer investment HELOCs. A DSCR Cashout refi would get you the cash you want but you will pay points, have a 1-5 year pre-payment penalty, etc.

Hi Elias!

Great points! I am working with a local bank that offers investment HELOCs.

0 Votes

Charlotte, North Carolina

Quote from @Devin Peterson:

Quote from @Kevin Akers:

Hi everyone!

Answer here lies in the math. Use a blended rate calculator to see what is more cost efficient. Most banks won't allow for a DSCR underwrite for HELOCs. Which means, if you've structured your taxes as losses for the last two years odds of qualifying are slim. The cadence over the past couple years has really been DSCR for investor growth. Happy to connect and help answer any questions. Good luck!

Hey Devin!

Thank you so much for your input. I might reach out to you to get more information

0 Votes

Charlotte, North Carolina

Quote from @Jaycee Greene:

What would help the community is for you to share as much info as you are comfortable, but the appraised values, current loan balances, and the current rents would be a good start.

Jaycee! Thank you for your input.

Property 1

Laon balance 51K, appraised for 127K, rent $1095

Property 2

Loan balance 55k, appraised 126K, rent $1195

0 Votes

Charlotte, North Carolina

Hi everyone!

1 Vote

Charlotte, North Carolina

Quote from @James P.:

Quote from @Kevin Akers:

If you have everything else in place (financing, permits, etc) and have underwritten the deal where the numbers make sense you can work on raising the 50K from private investors.

Do you know any? What kind of returns do they expect to take from a 50k initial investment?

Sorry for the late response. Every private investor has different expectations. The cool thing is you can structure the agreement between you and the private money investor in a lot of different ways that works for both parties. I would be clear about the details of your project and what they are investing into. You can let them know you're offering certain returns for their investment.

0 Votes

Charlotte, North Carolina

Hi Charwak!

The hard money lender could help in this situation since they are mostly. Keep in mind if this is your first property they usually require some experience and will be more expensive compared to borrowing from a bank. Just run your numbers as accurate as you can and present it to the hard money lender. If you need some lender contacts here in Charlotte and surrounding areas let me know.

0 Votes

Charlotte, North Carolina

If you have everything else in place (financing, permits, etc) and have underwritten the deal where the numbers make sense you can work on raising the 50K from private investors.

0 Votes

Charlotte, North Carolina

All Forum Posts by: Kevin Akers

Kevin Akers has started 3 posts and replied 22 times.

Post: Cash-out Refi or Line of Credit

Post: Cash-out Refi or Line of Credit

Post: Cash-out Refi or Line of Credit

Post: Cash-out Refi or Line of Credit

Post: Cash-out Refi or Line of Credit

Post: Cash-out Refi or Line of Credit

Post: Cash-out Refi or Line of Credit

Post: Self Storage Development Project with Entitlements - How to get 50k for construction?

Post: Looking for hard money lenders for foreclosure property.

Post: Self Storage Development Project with Entitlements - How to get 50k for construction?