All Forum Posts by: Kiley N.

Hi @Paul Defngin !

I'm a bit confused.  

It sounds like you are saying that because @Chris G. didn't put down 10% at closing, MIP is non-cancelable and will apply until the loan is paid off entirely.

EDIT:  I misinterpreted.  Thank you for your explanation @Paul Defngin!  

@Chris G.

One more option: Get an unsecured personal loan at an amount that would bring your mortgage down to 80% LTV, paydown your mortgage, and remove PMI.

Depending on the terms you are able to get the overall monthly payment obligation will probably end up higher though it seems like you currently have a cushion so that may not be a problem. Upside is your monthly payments now go to equity instead of a PMI company (because you paid down the mortgage with the personal loan) and you keep your 3.75% mortgage in tact.

This assumes you can obtain a loan in that amount (could be from any source), your mortgage has no prepayment penalty, and your lender confirms cancellation of the PMI with paydown.

@Kelvin Washington with BRRRR you will be looking to refi for the last R anyway. This first property could be looked upon as the ending of your first BRRRR whether it's a HELOC or a cash-out refi. Or both! Sounds like a good problem to have.

Best of luck to you!

 Thanks for the kind words Joe.  High praise coming from you!

 Brilliant.  Savings on the front and back end!

@William Glass , my understanding is that any equipment acquired and placed into service from 9/30/17 (4Q17) qualifies retroactively.  I didn't realize roofs, etc. were also to be included going forward.  Thanks @Brandon Hall !

 Since this is a philosophical/strategic discussion, the thought process applies to (hopefully) more than a single property; it applies to the portfolio as a whole.  To Joe's point, it's not so much $146 as it is $146x.  With "x" being the number of hypothetical properties owned/planned to acquire.  $40x would take much longer or much greater scale to allow the investor to amass an equivalent amount of reserves/dry powder for the next purchase.

The time value of money would suggest that investors prioritize obtaining reasonable cash flow up front to be reemployed and creating more value over time (i.e. having your money make you more money).  

Some would prefer to defer the present cash flow in the interest of greater future cash flow/debt free peace of mind/etc.  

There's really no price tag on the feeling of being debt free with all that cash flow.  Some have pointed out that this is how their wealthy clients' portfolios are characterized presently.  The question we are addressing with this topic is:  How did they get there?  And is that route the best financing philosophy that fits with my individual risk tolerance and goals?

We are all at different points in life and portfolio.  I, myself, can see the 15 yr vs 30 yr decision changing as my portfolio does.  

@James Canoy what if you ran your deal past BP?  Might a quality crowd-sourced approval help to calm those nerves?

Hi @Jill F.

I agree with the above posts and to consolidate based on what appears to be your main concern:

1.  Lenders are incentivized toward getting your request approved.

2.  With a good lender, committee should essentially be a formality.

As @Ken Jernigan said, it's not over until it's over.  Committee is just a step in the process, don't fret too much over it.  

Let us know how it goes!

@Brandon Hall

I was just thinking about starting a thread like this.  Glad someone legit stepped in to make it happen.  

Does the ~20% pass-through entity deduction apply to sole props?

Thanks!