All Forum Posts by: Matthew Swearingen

I'm in the process of refinancing my home from a 4.65% to a 2.99%. My mid credit score is 657. I have about 150K equity. I have one 30 day late in Nov 2019 (over 12 months) I was told I cant get a loan (20 year-my current is 30 yr) and that I need to have it remove. It was a misbalance of funcs. My fault. I'm also looking at buying an investment home with 20% at 30 year. I have read and heard different things. My score is ok. I have good amount of equity, good income from job, very little debt and 20% down for rental.

Any help would be appreciated. 

My lender says I need a min FICO of 680. I Have 657 and I have about 150K equity. I just want to tap into 50K. Is there any lenders that will do a 658 and what interest rates are they? I want to tap into it to use as down payment on investment home in Columbus.

Thanks for the input Joe. So you answered my question with a question. As far as percentages and my interest in percentages is, that's what I seem to be reading. 1.5 percent of the home value compared to rent. So if I buy a home for $100k, I would like to rent it for $1500. Of course I know its all relative to area and rents as it related as well as what the purchase price is. You insight as to what quantitative values you use and why you use numbers instead of percentages would be helpful. 

Thank you Julius-yes I need to take misc repairs into consideration and occupancy rates.

I have a duplex I might purchase and wanted to get thoughts. Its in c+ area. Each side rents for $750---so $1500 each month. Property has been updated. They are asking $159K. I will put 20% down ($31,800). I'm not sure if there's a mortage calculator out there that is fairly accurate that takes into account PITI and other ancillaries that will give me an accurate monthly net cash....if any one knows of one that they can send me, that would be great. I hate to call a lender everytime and have them work the numbers.

So for the 1% rule of $159k and rents of $1500/mo is just under the 1%. 

I just used a mortgage calculator and came up with the following based on accepted offer of $155K

Financing: 20% down, so financing 131K 30 year at 3.25%

Home insurance $600/year

PITI $540

Tax $76

Insurance $50

Total monthly payment: $765    

ROI= 1500 rents -mortgage 765=$735(12 months)=$8820/31K (down payment)=ROI

ROI =28.45%

Does this look correct. Based on this the cash on cash is good but falls short as far as the 1% rule. I like to be at least 1.5%.

Thank you everyone for your input. I'm fairly new so don't give me insulting comments, which I have never seen on this forum. I want to be encouraged and educated. Not scared off. What got me into this is I'm an ER nurse and got covid from one of my patients and spent 10 days in ICU and got me thinking that I need to have another alternative just in case. But IT IS something I have always wanted to do.

Thank you that gives me a better idea of how to strategize. As far as emergency funds, I have that covered even after I put 20% down using cash from savings. 

As far as the second home financing I guess I didn t go into great detail. There are current tenants but possibly in the next 6 months to a year I may move there and make it my primary residence. 

Thank you everyone for your input. So Im going to move forward and purchase a home in Lima. My ex-father-in-law bought it for his granddaughter to rent while she was in school (not for investment). She has moved away and said he would sell it to me for what he paid 2.5 years ago (July 2018) for $78K. Its 1699 sq. feet. 3/2. on about 1/4 acre detached 1.5 car garage. 1.7 miles from University and 1.5 miles from Hospital. He already has tenants in place for 1 year, very clean cute home. He gets $900/mon and he got a 30 year fixed at 5.25, PITI of $92 and $65 per month. Trying to decide if I want to do 15 year, or 30 year. Can I claim this home as second home or investment property. My cash flow after all expenses would be just barely $400/month. Ill be putting 20% down but again not sure best way to leverage my money as far as if I'm able to claim as second home or investment home and putting 10% or 20% down. I wont be using my equity line of roughly 80-100K. Down payment is cash I already have.

So if I made it confusing, I guess I'm asking the following:

1. Is it wiser for me to claim this as second home or investment home? Based on that what makes more sense....to put 10% or 20%?

2. Should I do 15 or 30 year?

3. Should I do interest only....5/1 ARM? If so why?

4. For my next home I can use the equity line since I don't want to use up all my saving?

Thoughts, questions, comments, concerns?

I have access to a HELOC of about $100k. Do I pay all cash or put 20-30% down? What is the best way to use it? I will have the payment of the HELOC and the mortgage if its not paid in cash. Any areas I should be looking at as far as a rate of return of at least 10%? Im looking in Columbus, Chattanooga, Wisconsin, parts of Texas?

Trying to get an understanding on possible financing in buying a pre construction in Tulum, Maybe I can get some clarification. Based on what I have read-preconstruct  want anyware from 30% to 50% down and then 2 more deposits with the last being on delivery. I personally would like to leverage my money and being that I don't have that kind of capital, putting say $100k into a completed condo within a years time frame puts me in a crunch. Not to mention if it turns out the developer skips town. 

I have read lol...that things are changing somewhat and banks in Mexico are offering a little more traditional financing with 30% down and 10, 15, 20 year loans. Has anyone heard the same? And it seems like you would have to find a developer that is willing to take those kind of terms as opposed to the 30% down and then 40% and remaining 30% at delivery. Don't quote me on those percentages.

If not, the only way it's possible would be a seller financing  me at 30% down and amortized over the next 10, 15, 20 years. It seems like you have to have some serious cash to do these types of transactions if there is not such financing and/or put all your eggs in one basket and hope for the best. 

Any advice would be appreciated. 

Thank you for the info. If you could PM me with the info of the RE agent and lenders? 

Been these posts and other post regarding buying in Tulum. I would like to invest in Tulum but I'm trying to make logistic sense of it all. Interested in a condo but aside from that, I'm a full time registered nurse and ironically take care of Covid patients. Some make it and others do not unfortunately. My point is that I work long hours at nights and trying to do as much research as I can before I make a decision to buy in Tulum, Riviera Maya and or Playa del Carmen. But due to my hectic schedule its difficult. I was wondering if you can answer a few questions and elaborate if need be. 1. Where to get the best deal as far as investment whether it me long term or short term? For me it makes no difference. I can ride out the Covid situation and decline in tourism.2. Im told 20% down? 3. Any pre construction developers you can suggests?4. Any real estate agents you can suggests?5. Any lenders you can suggest. any other info you can think of is appreciated.