All Forum Posts by: Marty L.

Hey guys 

Taking baby steps to build my wealth! So I am pre-approved for a 300k loan here in California thru my mortgage broker. Can I use this same pre-approval for an acquisition of a  property out of state? I am looking in different OOS markets that has a high rent to price ration. I've narrowed it down to  Cleveland OH and Santa Fe NM. I have options to either buy in California (LANCASTER, PALMDALE AND THE GREATER ANTELOPE VALLEY) or try my luck out of state where the barrier to entry is lower than CALI. 

Any input is greatly appreciate! 

Thanks BP community!! 

Hello BP,

I have a bit of a situation and I feel kinda stuck. Hoping you guys can bring some clarity with your knowledge and experience. Here it goes!

I got my Home loan modification back in 2008 -during the mortgage crisis due to a death in the family. My loan servicer was JP Morgan Chase. After 3 years of fighting and struggling with the bank, they approved me for a loan mod. At the time, my duplex in California was worth 250-275k and I owed 531k. I was extremely upside down. Chase didn’t forgive my second mortgage, so they combined my first and second, and modified my loan for 40 yrs. It almost cut my payment in half and made my monthly payment much affordable.

About a year ago BAYVIEW LOAN SERVICING bought my loan. My property is currently worth about 650k and I owe 500k. I have about 150k in equity. My question is, CAN I APPLY FOR A HELOC WITH A LOAN MODIFICATION IN PLACE?

My goal here is to get about 50-75k from an equity line of credit for another real estate investment and do the BRR method with it. Any advice from you guys would be greatly appreciated. Thank you!

Shalanna-

I am sort of in the same situation as you and I wish you the best! I currently have a primary residence that I am considering making into a rental property and in a sense downgrading (temporarily) to have extra cash to invest. I live in the LA market and our vacancy rates here are less than 5% and it's prime for investors.

Good luck!

Update:

After our meeting with a lender, we found that our obligations to our current loans cannot give us room for another loan. We cant get into another loan due to our LTV and DTI ratio. This is just a minor roadblock in our goal of acquiring MFR! Time to get creative!!

 Jerry-

Thanks for the input! That is exactly what the lender covered. Unfortunately, our numbers doesn't "crack" the code just yet but we will keep on researching our options.  

Best Regards

 Melissa- Thanks for the reply! I agree that buy and hold will be the best strategy to use. My partner and I both respectfully have our own buy and hold property but this will be the first time we will ever use a partner up. 

 Wish you the same Jesse.  How were you planning about acquiring your SMH?

@ Eric Drowiling

I am looking for properties in rent-able friendly areas such as South Los Angeles, South Gate, Bell, Bell Gardens around that vicinity. 

Fist of thank you for your input! I love our BP community! MFH is most definitely where the needle is pointing now we just have to get the point of entry. We are trying to find a niche in the Greater Los Angeles market (a market with stiff competition). 

Hello BP, 

My investing partner and I are meeting with a real estate agent and Mortgage banker soon. We are ready to jump into REI's, but want to make sure we start with our right foot. We are not sure whether to start with a FHA loan and buy a Duplex, triplex or Quad. Or start with a Single home family? What question should we ask? Should we get pre-qualified first? Any suggestions? Any advise would be helpful. Thanks!