All Forum Posts by: Michael Craig

Sounds like you put a lot into it. Probably should speak to a lawyer at this point.

@Jorge Duarte

Like I said in my previous post, 4.5% is a pretty good rate to be locked in at for an investment property. The only way I can see a refinance being favorable for you is if you have a high PMI (mortgage insurance).

A refinance may allow for you to drop the PMI completely, depending on the lender and their required LTV.

All the best!

@Jorge Duarte

Good questions, I like where your mind is at. Did you finance the property with owner occupied financing? Is it currently owner occupied? If it is not owner occupied, 4.5% is a pretty good rate to be locked in at. Also, what is your loan to value on the property? 

@Michael G.

With money down and a personal guarantee, any arrangement can make sense. Just be sure to properly screen this "entrepreneur".

@Michael G.

There are a lot of things that can go wrong. The most obvious but not necessarily the worst case scenario is: what if he places horrible tenants then declares bankruptcy on his "business"? He's on his way and you are stuck with a mess.

There is absolutely no risk for the "entrepreneur".

@Michael G.

Does this "entrepreneur" have credentials or references? Is he insured? If what you are looking for is a more passive means to investing, why not hire a licensed property manager?

@Metodi Haralambiev

Having a current renter is factored in but it does not get weighed heavily in under writing. What gets weighed heavily is claimed rental income on the last few years of tax returns. 

When I wrote my post, I was assuming @Tyshawn Best will be approved to refinance without including any new rental income. If I was in his situation, I would list the rental units and try to get them rented while simultaneously refinancing. 

@Anthony Wick

What you said about Craigslist and signs in the yard is so accurate LOL

This is fantastic news! I wish they did it in NY. One huge advantage to this is that it will clean up Zillow postings that are overdue/expired or already rented out. Serious listings only!

I utilized a listing agent to see how effective they are. It took them more days to rent out the unit than it would have taken me had I ustilized Zilllow and it cost me 1 months rent (agent fee)! Zillow would have been cheaper just by filling the vacancy sooner! This isn't even including the fact that I get 1 months rent in my pocket.

@Tyshawn Best

Congrats on the property!

Start the refinance now - it'll take 30+ days to close (maybe even longer given COVID). 

Side note, the appraisal usually happens within the second or third week of the refinance process so there is a good chance that you can have the appraisal done before tenants move in.