All Forum Posts by: Account Closed

Thank you everyone for the input! I have been blown away by the number of responses to my posts as well as other member's posts.

Thanks @John Verduzco, I just looked into TD Bank....I guess they don't do business in Louisiana. I will keep looking though....appreciate the help!!

@Michael Moheng, Wells Fargo is who I have the first mortgage with.....I will call them on Monday and see if I can get a HELOC through them. Too bad interest rates just went up 0.75 percent this past week. I will let you know how it goes....thanks!!

I apologize for the late response.....thank you @Abdul Azeez and @Mike Wood, I appreciate it!

FIGURED OUT WHAT HAPPENED THOUGH!!

@Reginald Wallace, I was trying to convert to a HELOC to pull cash out and purchase another rental property with cash, and a bonus was that my interest rate would be going from around 8% to about 4%. I had no idea that I couldn't get a HELOC or refinance my HE Loan on SFG rental property. I don't even thing the person at Capital One asked me if I lived in the home when I applied - we did it all over the phone and it was supposed to be fairly simple process since I already had a HE Loan....they were just going to convert it to a HELOC.....they just needed to verify my income, insurance and property taxes. Well, I found out that when I put in a change of address after I moved out of the property, all the address on my insurance paperwork had my new address, and here is the best part, the parish dropped my Homestead Exemption b/c they got a change of address card sent to them when they sent my last property tax bill to me. When receive notification that someone has changed addresses, they automatically drop the homestead exemption if they have one on the property. I went to the assessors office and got it added back on, but the parish website doesn't reflect changes until 12 weeks later. So guess what happens next? They send an appraiser out to the house, which I was told they were not going to do, however they did it anyway. One of my tenants is a 95 year old grandmother, and she tells the appraiser that they are renting the house. The appraiser tells Capital One this, then they ask me if I am living in the home. I tell them I am not, that it is rented out, and that's why they couldn't approve the loan! Whewww, that was a lot.

I found out yesterday that I have a relative who lends money out to people, I guess you call that a hard money lender.....he lends money out at like 18% or more......anyway, he is willing to give me an interest only loan at 5% for up to 9 months if I put between 20-50% down. Is this a good rate for an interest only loan?

Thanks!

Scott

I currently own and rent out a SFH to great tenants in New Orleans worth approximately 270K. I rent a small apartment in New Orleans b/c financially it makes more sense. I owe 118K on first mortgage and 18K on second mortgage, home equity loan. I applied for a HELOC for 60K to at Capital One 360, owner of second mortgage. They are aware that I am basically converting this HE Loan into a HELOC. They pulled my credit score, which was over 800, well above what they require, and I provided all the documentation they requested. This is a fairly straightforward process, or so I thought. I just got a letter back saying my loan was denied. I was planning on paying off the 18K here shortly and using this money to help purchase a second investment property. No one from Capital One 360 will call me back, and I have no idea what the problem could be.

Can you take out a HELOC on an investment property? That seems like a silly question, but I thought you could? Does it matter that this home is not my primary residence? I didn't think this was a problem? Does anyone else see a reason why, based on the info I provided, my loan would be denied?

Thank you!!

Scott

Wow, thanks everyone for the quick, detailed reaponses! I really appreciate it!

I am leaning towards handling it the way @BrettCausey mentioned above. They are excellent tenants, and I definitely dont want to damage that relationship. If I am totally honest, I am also afraid of having that uncomfortable conversation, something I need to get over as a landlord. But at the same time, I definitely understand everyone else's point of view - it is really awesome to get all these different opinions, thanks folks!

Scott

Hello folks,

First of all, thank you reading this post, I value everyone's feedback and I would like to see what you think about an issue my tenant called me with last night.

STORY: I rent out a single family home to wonderful tenants who pay me above average rent for the past 2 years. Their son occupies a bedroom on the first floor, and in the middle of that room, they put down this 8x8 Transformer carpet/rug/mat. It has been there for over a year. My tenant called me last night and said as she was vacuuming and she pulled up the rug and noticed there was mold on the bottom of the rug and on the carpet under the rug. The carpet was also damp, not drenched, just wet to the touch. The bottom side of the rug is smooth sealed plasticy feeling material - not sure how to describe it.

I talked to my uncle who is a home inspector and has inspected the property in the past and he said that what most likely happened was the slab, which is largely made up of water, sweat and the rug sat on top of the carpet and trapped moisture between the slab and the rug b/c the carpet could not breathe. This is why the carpet felt wet to the touch and caused the carpet and under side of the rug to mold. We have ruled out moisture from any other sources - no rain in New Orleans, Louisiana recently, carpet is only wet in the center of the room so it couldn't have come from another area/pipe that was leaking, the child did not spill anything(so they say), the ceiling was not dripping anything.

• Has anyone every heard of this, I believe my uncle, but I have never heard of such a thing? I live in New Orleans, where the humidity is high, that is the only reason this somewhat makes sense.
• Would you pay to have the carpet cleaned or replaced or make the tenant pay for this since they caused the damage? I know every lease varies, but just generally speaking, what you do as a landlord.

Thanks folks! Please let me know if you have any questions!

SCOTT