All Forum Posts by: Lamont Booth

Just wanted to get some thoughts on taking out a personal loan to cover the 20% down payment that is now required by lenders to purchase an investment property. If you ran your numbers for your property and you still cash flow(after mortgage,loan payment and reserves) would it be a wise choice to do so? I know lenders do not usually approve this method of down payment however is there a way around this without committing mortgage fraud?

Yes that would be correct to buy better on my  next purchase. Like they say you make your money when you buy the property. Thanks again for the advice. 

Yes the property  does cash flow and I have been blessed with a great tenant for the past 5 years who pays her rent on time. However the neighborhood home values have not gone up since 2010. Selling it at this time would be a tough call for me due to the positive cash flow + good tenant.Thanks for the idea.

Thanks for the advise. Paying it down faster seems to be the only  option.

I have a rental property that I have now owned since 2010 that is currently tenant occupied.It is a townhome built in 1986 and its roughly 1300 sqft. My current mortgage balance is a little over $66,000 and my mortgage payment is $663 a month(includes taxes,insurance). I originally paid $82,000 for it with a $10,000 down payment and a interest rate of 5.5%. With the low interest rates we have had recently I have tried with several lenders to do a streamline refi and or try to access some if any equity from the property. However I keep getting the same results that :1. loan balance is too low. 2. Not enough equity in the home(recent SFH have sold for $90,000 and up). 3.with all the fees and closing costs loan will not make financial sense for the bank or myself. My goal is either to lower my interest rate which will help lower my mortgage payment which helps in increasing my monthly profits or pulling equity to make improvements to the rental and invest in other investment properties. Or should I take advantage of my current monthly payment and pay extra towards the principle which can help me pay off the property sooner.Thanks!