All Forum Posts by: Matt Steele

@Joe Villeneuve

I love it. Thank you. That’s exactly what happened With my current property

@Joe Villeneuve

I am totally following you here. I think there are few things. One of which I’ll update the post.

The estimated value came from Redfin (which is more than likely high) but even if you call it 680 those numbers make sense.

I refinanced a year and a half ago and it appraised at 610.

I only put 3.5% when I purchased it (FHA).

I think the difficult part with your advice is that New England multi family market is extremely competitive so going after something worth 1M might be risky because people are just through junk out with a price tag and the CF doesn’t mAtch up all the time.

Love the recommendation.

I am looking for advice and opinions on my next steps.

Background:

I am 30 years old, have no kids, and am not currently married (that is coming though)

Currently, I have a duplex in MA. I live in one unit and collect rent on the other, which pays for more than 50% of the mortgage. If I were to rent out both units I would get roughly $3800-$4000 monthly.

I owe just under $450k on the mortgage with 3.125% (this is my only debt) and the property is valued at $670-$720k and I purchased for $470k.

I am considering a few things which I feel will set me up for success in the future with the lifestyle I want

Options:

1. 1. Purchase a few acres of land in Maine near a ski mountain and golf course... hold it and eventually build a small home to be further expanded in the future.
2. 2. Buy a home near ski mountain that needs some work. Slowly fix it and rent it / use it.
3. 3. Stockpile cash (and invest some) for the next 12-18 months to purchase another multi-family when the New England Market cools off
4. 4. Buy a single-family to prep for the future 
   

I can also probably do options 1 and 2 simultaneously depending on a few numbers and holding the land for a little before building.

Appreciate all and any advice! 

Thank you :)

Okay this makes sense. Thank you. 

Just need to see what rates I could get. I will check it out and run it through the spreadsheet. 

Thanks again!

Also thanks ^^ :)

Can you explain that a little more please? We looked at something like that, using a HELOCK, however the total cost didn't quite make sense.

Maybe I need to look at something more what you are saying. I can dig deeper, or inquire else where. 

The loan is rather large too. So when we dip under a certain loan, apparently the rate goes from 4.625% to 5% Not sure if that is the lender or not.

Small 2nd mortgage of roughly 36k :). 

Yes it owner occupied.

Hi all,

I am looking to refinance my loan. We have gained some significant appreciation in the last year. We are looking to take advantage of that before rates go up and/or the market begins to cool down.

I have done some research and analysis. Looking for some feedback or opinions.

Currently we are in an FHA loan with some heavy PMI.

I have a family friend who is a loan officer. He drew up two different loan options.

1) 30 year fixed @ 4.625% and a PMI 109 and 72 when the LTV is 85-89.99% and 80-84.99% respectively.

2) An ARM @ 3.875% fixed for 7 years with a 2% cap each year after that. Same PMI has above.

I have dumped this into a spreadsheet and done a break even analysis.

I discovered that it would take us roughly 7.3 years to break even on the 30 year loan, as we will be paying less principal and more interest, but ultimately getting rid of PMI. We could save a ton of money over the life of the loan, if we were to hold it for the remaining time.

I also discovered that we would break even very quickly on the ARM, in roughly 9 months. I also found that after breaking even we would save ~ $26,000 until the ARM begins to kick in. At which we would plan to do something with the loan again.

The property is in MA.

With rates on the rise and the market as hot as it is, a lot can happen in 7 years. I am looking for any advice or opinions on an ARM.

I don't mind sharing my spreadsheet to double check my analysis either.

Thanks,

Matt

Look for some recommendations of small  banks in the North Shore area, around Danvers MA. 

I am looking to refinance  my first multi family loan. Curious if any one has great experiences with small local banks.

Thanks!

@Ryan Sublett Thanks yea, I have been looking at that. I also know that there are even more properties from last week that just listed and  even more pending. 

Sorry he has not worked with a property management company in Walpole, but I will keep my ears open and circle back if I hear anything.