All Forum Posts by: Marco G.

@Dana De Andres

I recently completed a cash out on my primary that became the down payment on my new primary. Used the loan estimate while it was processing as my proof of funds for the new purchase.

I used HELOC that was closed/paid off with this cash out as down payment for numerous investment properties over the years. At this time, I got a better rate on the cash out and a lower payment given the 30 yr repayment so my payment on the "old" primary is actually four digits lower than it was with the smaller loan balance and HELOC (my HELOC had a fixed rate lock option where I was repaying on a five year amortization).

So yes, you can do it. Old primary will now be a rental for me.

@Karl Teshima

What are you trying to buy? If this is an agency loan, meaning for a 1-4 unit and in the hundreds of thousands, then loan costs and rate should be what matters. I have had success with a few Internet based-lenders. Always remember, the person you’re taking to is not the one deciding to lend. They just get the paperwork from you. Underwriting is where the decisions are made.

Exception is if you’re at a local bank and developing a relationship and they are keeping the loans on their books. Otherwise, rate and costs is all that matters.

And if you go through underwriting and get pre approval, just ask what is the DTI. If you're under 40 you'll get approved anywhere if your income is w-2. I'd prefer to be pre approved with lender to speed up loan processing but not a requirement you borrow with same bank that have you pre approval.

Good luck.

@Joshua Bailey

Geico.

@Brad L.

What did you use for the shower walls? Looks like slab porcelain but I’m guessing not based on your $3k figure!

@Michael C.

25% down all day long.

@David Lao

Google passive activity loss limitation. Lots of inaccurate and incorrect advice here.

@Delbert Standifer

This is a bad deal for you. Re-evaluate your friendship.

@Matt Huber

Thanks for follow up, it’s rare!

@Michael Plaks

Excellent explanation and insight!

@Dylan Whitcher

Just Google cost segregation study...