All Forum Posts by: Matthew Anderson

@Matthew Anderson- thanks ...good job ...Most lenders will not have a cash out refinance program that will have a LTV above 75% ...you might focus on getting a rate/ term refinance done to payoff the hard money loan and cover these costs and then try to replenish your remodel costs some other way ( HELOC on the subject property or on your home )

Thanks. Yeah, I may go that route. I don’t need to replace that money right away so it gives me options.

0 Votes

Scottsdale, Arizona

If you bought this sept, you will not be able to use the new value to take any cash out with a conventional loan until next sept. so, you make sure you are comparing apples to apples.

Sorry, it wasn't conventional. And I was told the seasoning period is 6 months, not a year.

0 Votes

Scottsdale, Arizona

Quote from @Matthew Crivelli:

Quote from @Matthew Anderson:

Quote from @Matthew Crivelli:

This property is not going to cash flow with a DSCR loan, even at 75% LTV. You should look to sell, no one is doing 90% cash outs.

It will, depending on the financing, rents are strong in that area.

Let's say you take a mortgage of 600k (75% of your ARV)
Taxes - 5k Annually
Insurance 2k Annually
Rate - 7.5%
30 Year Fixed

Your PITI payment would be $4,778.62

If the lender is using a DSCR of 1.1 - you would need actual / market rent of $5,256.48 to qualify for a 75% LTV loan.

Are you planning on going the Air B & B route?

I have a better conventional offer than that right now that will cash flow.

0 Votes

Scottsdale, Arizona

Quote from @Austin Clarence:

Quote from @Matthew Anderson:

Quote from @Dallas Sauer:

Cash out is typically going to max at 75%. Does the property cash flow?

Depending on financing, it could cash flow anywhere from "meh" to "I can live with that". Rents are strong in its location.

Ok gotcha, if I were you I would look at rental comps online to get a range. Then estimate what the mortgage payment would be. If you can get it even Mortgage+HOA/Rent that will be impressive and if your credit checks out you will definitely have solid cash out options. If you send me more details I can help look into it for you

My Agent and PM is looking at both now. I expect high 3800-4100. Credit is 750+

0 Votes

Scottsdale, Arizona

Quote from @Matthew Crivelli:

This property is not going to cash flow with a DSCR loan, even at 75% LTV. You should look to sell, no one is doing 90% cash outs.

It will, depending on the financing, rents are strong in that area.

0 Votes

Scottsdale, Arizona

Quote from @Kevin Romines:

Fannie Mae and Freddie Mac are 75% LTV max. However, there are Non-QM loans that are either full doc or bank statement loans that will allow up to 80% cash out.

I hope that helps?

Yeah, I'm going to have go outside of conventional.

0 Votes

Scottsdale, Arizona

Quote from @Ryan Davies:

Most are going to max out at 75%

Yeah, that's what my primary go-to ran numbers on it for me.

0 Votes

Scottsdale, Arizona

Quote from @Issac San Miguel:

Typically going to be maxed at 75% and then hedged futher if the property does not cash flow.

Feel free to reach out if you have any questions.

Thanks, that's what the lender I primarily use is saying. I'm looking around to see if there's alternatives.

It'll cash flow depending on the financing package. Rents are strong in that area.

0 Votes

Scottsdale, Arizona

Quote from @Dallas Sauer:

Cash out is typically going to max at 75%. Does the property cash flow?

Depending on financing, it could cash flow anywhere from "meh" to "I can live with that". Rents are strong in its location.

0 Votes

Scottsdale, Arizona

I picked up a house in Sep. for 577k with an ARV of 800-810k.
I took hard money, note of 522k.
Paid for the down and renovations out of my pocket ~57k+130k.

Selling will make a little money, but it’s not a ton. The house is great, great location and we remodeled it a little nicer than we originally planned given the strength of the location.

We’re considering refinancing instead and putting renters in for at least a year.

I’ve talked to a couple mortgage folks and haven’t gotten any great options yet.

Anyone doing 80-90% cash out on investment properties? Maybe even IO products?
Thoughts / Suggestions?

0 Votes

Scottsdale, Arizona

All Forum Posts by: Matthew Anderson

Matthew Anderson has started 1 posts and replied 10 times.

Post: Considering a Refi and Sale of a Flip

Post: Considering a Refi and Sale of a Flip

Post: Considering a Refi and Sale of a Flip

Post: Considering a Refi and Sale of a Flip

Post: Considering a Refi and Sale of a Flip

Post: Considering a Refi and Sale of a Flip

Post: Considering a Refi and Sale of a Flip

Post: Considering a Refi and Sale of a Flip

Post: Considering a Refi and Sale of a Flip

Post: Considering a Refi and Sale of a Flip