All Forum Posts by: Chris Ellis

What is the home worth and what do you owe? The amount you are looking to take out will also become important to find out who will have an interest. If it's not at least $50,000, you will have a hard time even finding a private lender that would want to spend the time and take a look. 

Overall most will want to refi out the entire loan. The majority of private will want to put it under a business and do not work with owner occupied. A lot of them also max out at 70% LTV.

Why not refi the fha under another owner occupied traditional loan structure? Are you still living in the property or is that the issue? A more traditional approach is the only way I can see getting closer to that 80% LTV.

A great source for a free number is through Google Voice. Create or login to a gmail account. Open a new tab and go to https://google.com/voice and set up a free number to use. This can forward directly to your cell without having to give them your personal number. 

Owner occupied or investment property?

If they are open to it, you could put a 2nd lien on the same property. If you are holding on to any of the prior properties, pulling equity out of those might be another way to come up with the cash. 

What type of property is it?

How much is owed on your current home worth $354K? Raw land is different than those with structures and you will not be able to pull out as much percentage wise. How much is owed though on that money?

Offer more cash and take him away from having to finance the $55k. So perhaps a counter at your $130k cash and no financing from the seller. Other financing can be structured without involving the seller having to carry.

Everyone's hope is that they will never have a vacancy so job well done. An important question to consider as well is how the tenant keeps up the property. Is an extra $100 a month worth the risk of having a tenant who puts holes in walls etc...?

To see if you are on par with others, do a search in the area for a rental of the same size. You should be able to realize a general margin from high to low. See where you are comparatively. 

If you are realizing profit every month and the tenant is sound then I think the goal is accomplished overall. Perhaps time to start looking at the next property and getting to the same position. Sounds like you are in good.

I think at the end of the day, the question to ask yourself is how quickly you want to move on to the next project. It sounds like you started with no money out of pocket, so by selling, you could pay back the investor, helping solidify that relationship for future deals, and will also hopefully have some cash in hand to allow you to go after the next project potentially on your own. By holding on to the property, equity will be created but is not necessarily cash. A potential refi could be done as well. Those are the numbers to look at I would think.

If there is no existing lien on the property, then there is probably someone who would be willing to do it now. Others will like to see around a 6 month history. The difference in the end may be a slight reduction in rates based on history. Most cash out refi's will give you up to 70%. Unless owner occupied, which it does not sound like this is the case.