All Forum Posts by: Mike Cox

A couple other thoughts.  I want to get more properties so maybe I max the cash out for down payments.  

Closing costs will be around $3500

All,

  I really need some help or advice with this one.  I have 7 properties that are financed with commercial loans.  They are all the same 1200 sq foot townhouses.

I have 2 years left at 5% and then they can vary.  20 yr loan amortization.  I would love to get these on a 30 yr fixed and get some cash out.

They are worth at least 80K each and I owe around 45K on each of them.

I got a quote of 30 yr at 5.6% with one point. 7 different loans up to 75% LTV.

I will have to pay penalties if I refi these 2 percent on 4 of them and 3 percent on 3 of them.

These average about 750 a month in rent.

I would like to pay off my solo 401K loan with the cash out it is like 30K.  The payments on that are high like $2550 a quarter.

This will help my cash flow a lot and I wont have to worry about rising rates but oh my gosh the closing costs and penalties......

Should I do it?  

Look for a better deal?

Need help on this one!

My goal is to buy 20 cash flowing rentals in decent neighborhoods.  By 2022 and then disappear for a while on my boat.  8 down 12 to go.

The first were easy to get i made some money on a modest lake I home I built and did a refi. Bought 4. Then from same seller a year later I bought 3 more with a loan from Solo 401K i set up. I also have a condo lived in after I sold the lake house. I rented the condo and bought my personal residence with nothing down VA loan. It has appreciated nicely on paper since 2015.

I am kind of tapped out for money for down payments now so this is why I want to refinance, not to mention the rates are going up and I have commercial loans.

Comments and advice appreciated.

Mike

Travis,

Good points.  Any tips on getting fixed loans for these?  

What kind of rate should I expect?

All,

  I have 7 townhouses all on commercial loans.  4 are on one loan and I have been paying this for 3 years.  It is fixed for 5 at 5% years amortized for 20, and then can be variable.  My loan officer said we can just write up the loan at the new rate after 5 years.  Not sure if this means he will lock it at new rate for 5 more years or what.  I have a prepayment penalty if I refinance with some other bank also it decreases one percent per year so now is 2 percent.

I bought these 4 for 250K (62500 each) and when I bought them in 2015 they appraised for 292K (73000 each).  I put 20% down on these.  I currently owe 180K so I have some equity.  I believe these are worth 80K each or more now.  Zillow and redfin have them quite a bit higher but i don't believe it.  The rents have always doubled the mortgage and I have no trouble renting them.  They are 2 bedroom 1200 Sq feet in good location near Knoxville.

I would like to keep growing and get more properties but don't have the funds for down payment.  I am a little nervous about the variable rates rising also.

I have great credit and a good stable day job.

Some questions I have.

1. Should I try to refi now and cash out equity to do another deal?

2. Should I try to get a fixed or non commercial loan?

3. Any advice as what my strategy should be moving forward?

Mike

Rates are in the 7 percent range for 30 yr fixed for rentals from lima one

I have 7 townhouses. All are on a 20 yr loan I have had for over 2 years fixed for 3 more years. Was thinking of refinancing to a better rate. My current rate is 5 percent. Would love to get to a 30 yr fixed for cash flow. I have a penalty if I refinance it is 3 percent now. Goes down 1 percent a year. I put 20 percent down and I bought cheap I may have 30 to 40 percent equity. Value has went up according to zillow. Also i am a veteran, I saw a post about a commercial VA loan. I am a veteran.

Credit is 800

Any ideas?