All Forum Posts by: Bala P.

Jeffrey C., The tax record appraisals are done once a year and are never current. Have you looked at the comps in that neighborhood?

Jon K., you are correct, the bald cypress on CL is for the arboristical value, wonder if that is even a word :) But I don't think it will survive if they have to transplant it.

Monica Breckenridge, I did exactly you said and here is my email to the loan officer

"So the difference between the 30 vs 15 in monthly payments is 404.85. If I pay that in extra every month continuosly, the loan will be payed off in Mar 2028, 15 years and 11 months. If I don't it will be paid off in Apr, 2042.

If I do the 15 year mortgage, it will be paid off in April 2027.

I think 30 years gives me better cash flow and flexible, I can pay extra or pay the minimum and also keeps my interest rate at my current 15 year level which is 4%."

The main objective for the cash out is since I am locking in at a historical low rate better borrow how much ever I can and use that to leverage down the road. I had been a shy lurker for a while and did read that post but you see my point but I could be wrong and there might be another reason not to cash out.

Also you might want to check out if you can move out in six months if you refied as primary residence without getting in trouble.

Brian Hoyt, I never thought about the size of the first home bigger than the second will be an issue. Also it is a good thing you pointed out the 203K restrictions which I was not aware of.

Jeff Sielicky, My loan officer I talked to said it will not be an issue, but after reading Jon Holdman's reply I did some investigation and found out financing it intentionally as a primary only to make it an investment would be mortgage fraud. Thanks both you and if I am taking this path probably refi as an investment property and bite the points or a little higher rate to be on the safer side and to keep options open, correct?

Jon K., talk about craigslist , trees and here is one

Tree on CL!

Technically I am not an RE investor yet but even I never search on google for RE unless for any educational material.

So I do not think any veteran RE investor would google for any services. Not to discourage or you or anything but if I am an out of area investor, I would never google for such services.

Try craigslist redirecting to your site, start a youtube channel, angie's list, networking with local RE groups for word of mouth referrals and most of all being an active poster right here on BP to name a few.

Good luck.

Ed O. how tall is the tree. You might try listing it in craigslist as a free item and you never know, one's trash is always someone else's treasure, ask any flipper :)

Thanks Jon Holdman, for your valid points on the second loan and FICO, basically it is an unknown and I am willing to risk it and find out.

Thanks for the pointer on the statement regarding the intend to occupy the property and will watch for it. I personally think majority of the people refinancing does not intend to stay in the property indefinitely, but I will certainly consider.

I did take the 50% rule into consideration, the P&I is $795 and the rental comp for the neighborhood is around $1700-$1800. Our both elementary and middle schools are exemplary and there has been always a demand and this is right around the school year but you never know.

I like all your posts replying with your real world experience to expose the reality of the landlord world for all the uninformed newbies like me to just jump in and get burnt.

I feel honored for your reply and keep up the good work.

Hello all,

We have some equity in our primary residence so thinking about refinancing with cash option and using that money as down for the second house. Currently we are on a 15 year term with 11 some years left and thinking about going 30 years. The current rate will be attractive down the road and hopefully generate some cash flow. I can lock in the 30 years with the same rate we are paying currently.

If I start to add the difference in the monthly payments between a 15 and a 30 year towards the principal and continue paying the same way, it will be paid off in 15 years and 11 months. I just did this to see the difference but will pay only the minimum required to reap the current interest rate benefit.

The current plan is to convert the current residence to a rental and make the second house as the primary. This would get me started with my goals to buy and hold. I know exactly the condition of the property and the things that are nearing their end of life. Also hopefully the second mortgage will be a primary residence loan, which I am not sure. My questions are

- anyone see anything wrong with strategy?
- if I refinance now, how long should I wait to acquire the next house?
- with an exising lien on the current home what should I expect from the bank when I apply for the second home as a primary residence?
- every book,blogs and thread I read says never buy the rental as if you will be living in it and I am going against this rule. Anything wrong with it?
- really don't know how much dent will the refi cash out create on my fico?
- if a big dent, would the second home rate sky rocket?

Thanks in advance and just wanted to get the experts opinion before I make any damage.

Angie,

It was nice meeting you and your husband. I was posting late in the night and have missed you and several others. I do apologize to you and others like, Cory, Sam Craven and Andy B. Good luck.