All Forum Posts by: Serdar Umur

So, latest on this one, it is actually hard to find lenders that will give you HELOC on investment property. Many thanks to @Brie Schmidt , she advised me on couple lenders and one of them is not going to do it and other one I think, they will go for it. 

We also found one that might do it but LTV ratios are pretty low. So, beware, it is easier to refinance but hard to get an HELOC on investment property. Learning in progress :)

Charlie, I am not sure what cash out refinance exactly is but if it is just refinancing the whole loan, i am trying to avoid that. We have a good loan right now with a great rate, better than today's rates and we are about half way done on a 15 year old loan.

Teresa, I am going to look for banks/lenders that operate both in NY and IL or CT and IL to see if I can walk in and talk to somebody. I am trying to avoid big banks. I had terrible experience with Chase bank not too long ago. I will ask them about a 20 year loan. Is there a certain name for it? If you don't mind, what is your lenders name?

Thank you both!

Hello there,

I am new in real estate investing. We have a property in Chicago with 200K equity in it. It was evaluated by an certified appraiser. It is more than 50% of the house's total value.

I am trying to get a line of credit up to 100K to invest in a multi-unit house. I just want to have the line of credit available so when I find the property, I can just go and pull the money out.

That unit is our second property now, we live in in Connecticut. We will be investing in Fairfield county in CT, in Norwalk and surrounding area.

I went to our mortgage broker that found us the initial mortgage in the unit to ask for the line of credit and he told us, he checked with 3 of his lenders and none-of-them really wants to open a line of credit for us because it is not our primary unit. 

I have been studying real estate for a while now and I thought there was a whole strategy around getting a second loan on your rental properties to keep investing but I am having a hard time to get this second loan on this second house.

Can anybody help me? Do you know lenders in Chicago or licensed in Illinois that would be okay with lending to a second property? 

If you are a lender, please feel free to contact me as well.

Thank you for everybody's help.

Take care!

My wife & I are just about to close on our second property and found out from the bank (Chase) 4 days before the closing date that their calculations for our DTI ratio are not within their comfort zone. We both work in sales and they refuse to factor in any of our commissions (which is about 30% of our income ) even though they've been consistent for years. We are also keeping our current home as a rental property but since we don't have rental history they didn't want to count that either. Now, at the 11th hour they are telling us they are willing to consider the rental income but need to get our place appraised. The other option they gave us is to put down another $12k to lower our loan amount so we can either do that or take the risk of waiting for the appraisal to come through to see if the underwriter will agree to include that rental income for our DTI ratio. We already know that we are going to miss our original closing date which is tomorrow. We have a cushion of 5 more business days in our contract with the seller but that could slip through our fingers quickly. We started working with Chase 3 months ago and have given them every little nitty gritty detail and document that they have asked for so it's extremely aggravating that they waited until the last minute to tell us this info. We told them that we would give them the extra down payment ONLY if they could make our original close date happen but now that that's not possible I don't want to give them any more money. However we don't want to lose the property either since we've already rented out our place and are moving cross country today with no place to live now. Do any of you have any thoughts on this? The appraiser came to our place yesterday but I don't know how long it will take to turn that paperwork around. Do we wait it out on the appraisal or just pony up the extra dough to make to process go faster and make sure we close within the five day cushion? In situations like this how likely is it that the seller would give us more time versus pulling the plug on the whole thing? PS - don't ever use Chase. They are an evil empire!!!

Thank you very much all. This is exactly what I was looking for. Since I am a newbie, I am totally not on top of my game yet but working on strategies to buy the second investment property and these instructions will definitely help.

Hey there,

I am new to RE investing and bigger pockets. So thank you very much for your help. 

I researched this a bit but couldn't find a good answer.  I am trying to start this business in Southern CT. 

So, I have been looking at properties and they have been fitting the bill sometimes that they are witin 2% rule or close, they have potential.

I have been looking at single families or up to 4 units and I realized that sometimes single families have better cash flow than 3 or 4 units although single family is more expensive.

For example, $150k single family with $2,500 positive income vs. 3 units for $125K and $2,350 income. Numbers wise multi-unit makes more sense but when you consider that you need to deal with 3 tenants vs. 1, I am not sure if it still makes sense. 

Is there a rulle of thumb what an income per tenant that you need to deal with should be? 

Your help is much appreciated.

Thank you,

Serdar