All Forum Posts by: Mark Fitzpatrick

It is in Golf Colony 7 HOA in Surfside Beach.

Refinancing is very enticing indeed! Thanks for the tip.

I own a condo in Myrtle Beach, SC that is valued at about $150,000 to $165,000 according to my realtor. I currently rent it for $900 to a tenant who has been there for 4 years. I owe $50,000 on the condo. Originally bought it for $70,000 in 2012. Mortgage is $300 a month. HOA is $320 a month. I put flooring in during 2021. New HVAC in 2 years ago. The plan was to eventually rehab the kitchen and baths. They are original.

Should I raise the rent to $1,000 a month and keep the tenant in there? Hopefully keep renting it for many years to come.

Should I sell it? If so what to do with the money?

I am a newbie. I bought the condo then moved to a different city so I rented it out. 

UPDATE - One year Later

I saved enough for an FHA loan on a townhome in Mount Pleasant, SC that I will close on at the end of May. I am excited that my Wife and I have bought our second home.

During the process I found out the loan on the condo I talked about in the original post here in Myrtle Beach has a Ballon payment due August 2019 for the entire remaining balance. At the time I didn't understand and thought we had a 30 year loan. Inexperience sucks but I learned a lesson. My current lender said now is the perfect time to refinance since they have all my info. So my question is this.

Current Zillow value of Condo $88,000. So should I refinance at $65,000 which is less than the typical 80% most lenders will do. Then I figure 3.5% for closing fees about $2,250. I currently owe $48,000 on the condo.

65,000-48,000=17,000   17,000-2,250=14,750

I could get $14,750 in cash out by me math. I could still make about $150 a month from my current tenant. I take the $14,750 and put it in the bank for when the tenant moves out then I use the $ to fix it up and rent it for $1,000 a month. Some new floors, paint and cabinets maybe should really spruce the place up.

Is this a good path to take? Or what do you think I should do in this situation?

Hi, This would be my second property that I am looking to buy. I rent my first property that I lived in for 4 years and make a decent ROI. I currently rent and would like to buy something to hopefully do the same thing again. Which is live in the residence for about 4 years then rent it. I figured this is my best route to investment properties since it is less risk for me and I don't have much capital. I found an owner financed property which interests me because I just moved to the area and the mortgage company wasn't giving me enough of a loan to get into a home in my desired area. I just don't know if this is a good deal for me or not?

The Deal - It is a 3bedroom 2 1/2 bath in Mount Pleasant SC. The owner is asking $238,500.00. The exterior was refurbished so there is a 10k special assessment. The owner would pay 6k towards the assessment bringing the sale price to $232,500. Leaving me with the monthly assessment of $130.00 until paid off, about 5 years. The owner is asking for 10k as a down payment. Then he would do an interest only loan at 5 3/4%. He said he would do an interest only loan to make it affordable for a young professional like myself. So it would come out approximately according to him to --- Sale price 222,500 *5 3/4= 1,066.15 Interest payment. Plus the POA and assessment fee of 536.50+1,066.15= 1,602.65. Plus insurance and taxes 100 + 1,602.65 = $1,702.65 total monthly interest only payment. Which is a decent payment but at the top of my budget. I would be paying about $1,500.00 a month in rent. I have about 18k saved up for a home purchase. So I would have some emergency money left. Then he said if I wanted or could I would be able to pay a lump sum towards the principle at the end of each year. I may not be able to pay towards the principle the first year but would hope to the following year or when my salary increases. The unit is in nice condition. It doesn't need any work but needs some updating eventually. Which is good for me because I can choose the materials. The area is a really nice city. Homes in the area are appreciating at a high rate. I think the home value would continue to rise although I thought his asking price was a little high for the unit. He would not charge any penalty fees if I paid the loan off early. I think this is all the info. Let me know what you think or if I need to give some more info?

@Jon B. I see people talk about how they refinance their FHA loans. But wouldn't that be the same thing for me as the loan I have now. One can't just refinance unless they have enough equity in the property. They would have to pay closing costs, as well as wait a long time to get under the 75% of equity. I don't really get how people say they will refinance their FHA loans, such as with the BRR?. If they have an FHA loan after about 3 to 4 years it would still be about 90% of the property value. Unless they put more money down. Am I following correctly?

Thanks for the feedback everyone. It is clearer now the path I need to take. I will take your guys advice and try to move forward with an FHA loan.

@Chris Martin @Justin Smith Yeah my cousin is a broker and is super cool to help me out. This really sucks for me as I was depending on refinancing my loan. What do you mean 20K is not enough? How much would it take before I could refinance? Isn't refinancing a mortgage and HELOC two different things? I thought a refinance was basically like taking out a new mortgage for what the property was worth? I thought I was basically following the BRRRR method but just living in the unit until the equity built up. Kind of like a BRRRR/house hacking. How would I do BRRRR if what I am doing is not it? Sorry for the 20 questions I am just a little rattled.

I bought my first property in Myrtle Beach about 4 years ago. I paid 70k and now owe about 50k on the mortgage. I put 14k as a down payment then. It is a 2bd 2bth condo. I recently moved to Charleston, SC for a new and better job(On-Site Manager). I rented that unit for 900 a month. My HOA dues are $275 and my mortgage is $275 HO6 is $50. So total expense is $600 and income is $900. I just rented it this month so I haven't even received the check yet from my cousin how is managing it. So I only have minimal money saved up for the new property.

Now to by my next property I will need to use the equity in that property for the down payment. Now I figured I would refinance the property. I am not sure how that all works. Would I do another Mortgage for 70k on the property? Should I take all the equity out that I can or just what i need for a down payment? Zillow says the property is worth 80k now. 

I need some advice on what I should do? The Condo properties in Mount Pleasant where I work run for about 180k to 230k. I am hoping to do an FHA loan on the new property to keep the down payment down since I don't have much money saved. First property is a conventional loan. Or should I just take all the equity out of the first property and put it into the new property?

I am trying to learn so appreciate feedback a lot. Thanks

@Amy Bates , Ok good to know to expect 20% down. 6 months of expenses set aside would be tough. So they are saying you must have this____ much cash in the bank to be eligible for the loan? Yes we are still living in the condo. I would prefer to stay in the condo. But may be willing to move into a multi family.