All Forum Posts by: Pete B.

We are going to be buying a new home, and renting our current primary out. I have an untapped heloc on our primary, I want to refinance to get the low introductory rate and also larger line, because of appreciation. If I refinance the untapped heloc at the same time I’m under contract and the loan is processing, will that affect my credit or debt to income ratio? Also if I tapped it to cover a low appraisal gap? Thanks

@James Rador definitely considering a cash out refi as well, good point. Thanks

@Jason G. The updates would be more capital expenditures than cosmetic, ac, water heater, replacing inefficient 1970s aluminum windows etc. I don’t want to think about anything for a long time once I lease it. I just hate to waste the one year 1.9% rate on only 20k worth of rehab. I’d probably just put that amount on credit cards, after closing on the new house so not to hurt my dti. My big concern is interest rates going up, and banks possibly not offering HELOCs during possible upcoming economic turmoil in the near future.

We were planning on buying another house to move into and rent out our current home. Our home has about 200k of equity and will cash flow around $1100 a month covering most of the mortgage on the new house. We want to live in the new house for a year, then move and rent that one out.

We have enough cash for down payment and a little left over to cover a couple months living expenses. But we’re thinking to do some updating on our house so it’s bulletproof for another 10 years.

We could get an over 100k heloc at 1.9% for the first year. So we’re debating on taking advantage of the heloc while we can still get one, and since interest rates look uncertain for the future. Any thoughts on whether to use the cash first, or heloc? Thanks

@Brandon Rush good advice, I’m thinking about accumulation right now, and riding the inflation wave, thanks

We have used the strategy of buying with owner occupant financing, living in the property for over a year then moving into a new home, and renting out the prior home. I like it because it gives you a higher probability of getting the property and more favorable terms and lower interest rates. The last two times we’ve done this, we put 20% down, I’ve never wanted to pay pmi. But now that prices have gotten so high, I am considering maybe putting less than 20% down to secure the property, then later refinance to remove pmi. I’d like to accumulate as many properties in this inflationary environment as possible. I just wanted to know what everyone thought about putting down lower payments with the strategy to move at an accelerated pace?

@Jason Bott thanks for putting that in perspective, it would definitely be on the higher side to replace.

I’m in Florida and have a 17 year old roof, so my premium just went way up on my insurance. One of my neighbors just got a new roof put on, it turns out we had a hail storm last year and his roof was covered by insurance. So I had a roofer come out and he found hail and wind damage on mine too, and thinks mine will be covered as well.

An insurance broker I’d talked to recently on quotes touched base with me, so I told him about the roof situation. He told me never to file a claim on an old roof just to get a new one, and the claim will follow me and hurt me for years? But if I have legitimate damage, why not?

@Ronald Allen Barney thanks

My neighbor is selling a house for sale by owner in our low inventory market. The house is very well maintained but dated. Was thinking about offering 25k below the 280k asking price, but don’t want to lose the deal. Don’t know what others are offering in this competitive environment?