All Forum Posts by: Sidrit Veselaj

@Andrea Cole Thank you for sharing that. I finally got two bookings for October for about 10 days. I know this is not high season at the Cape but I was hoping to see more. I will probably keep them until next spring and if I don’t see much success for future bookings I’ll probably drop them as well and manage it on my own

@Gui Touma then HELOC sounds like a better option for you. Typically you get a 10 year term where you can borrow and pay down as many times as you want. And during this period you're only obligated to pay back interest only every month and only for the amount borrowed. If you carry a balance at the end of the 10 years it becomes a fixed principal and interest payment for the next 10-25 years. But check with your local banks for more info...

@Jacob Dimick

Yes this sounds like the underwriter doesn't believe that you're actually moving in the new home. That said, if the house is very similar to the one you're currently living, underwriters have the discretion to deny the loan. Doesn't sound like your income is the issue, which is good.

If you don't want to lose the deal, maybe purchase it as an investment, and two months down the road go to a different bank and refinance it as a primary and you will have sufficient documents (utilities, electric bill) to show that you actually reside at your new address.

Hope this helps!

@Jacob Dimick

Yes this sounds like the underwriter doesn't believe that you're actually moving in the new home. That said, if the house is very similar to the one you're currently living, underwriters have the discretion to deny the loan. Doesn't sound like your income is the issue, which is good.

If you don't want to lose the deal, maybe purchase it as an investment, and two months down the road go to a different bank and refinance it as a primary and you will have sufficient documents (utilities, electric bill) to show that you actually reside at your new address. 

Hope this helps!

Most traditional lenders there's no pre payment penalty, meaning you could refinance soon after you close. Mortgage brokers may have a 6 month hold policy but double check with each different lender. Typically a cashout refi lenders will go up 75%-80% LTV.

I'm currently using Turnkey Rentals for one of my properties near the beach in Cape Cod MA. So far I haven't had any bookings, just inquiries. I understand this is not the hot season but I was hoping to get more bookings since they post the property in many sites such as Airbnb VRBO etc. It's been about 2 weeks and I'm starting to get a little nervous. Has any of you had any experience with Turnkey Vacation Rentals and what's your thoughts about having a rental management company manage your property?

Depending on what your goal is... If you're planning on buying another investment property, or have some fixed expenses such as big renovations, it may be a good idea to take a cash out and using most of funds towards your next project, at a fixed rate.

But if you're just looking to have a piece of mind to have funds available at any time and only get charged interest for what you actually use, then a HELOC may be a better option.

Also if you're getting a better interest rate on your primary now, then definitely a great idea to refinance this way you lower your monthly payment.

Hope this helps!

Sidrit

Investment Info:

Other buy & hold investment in Quincy.

Purchase price: $156,500
Cash invested: $40,000
Sale price: $226,000

Condo, held (rented) for two years and then sold it for a nice little profit

What made you interested in investing in this type of deal?

Good cash flow considering the rent in the area

How did you find this deal and how did you negotiate it?

Found through realtor and negotiated the price down from $160k to $155k

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Small improvements such as painting and updating some of the appliances (dishwasher and stove)

What was the outcome?

Market appreciation over 2 years building a good equity and mortgage being paid down from the monthly rentals. Sold it instead of putting more of my money to fix kitchen and bathroom.

Lessons learned? Challenges?

If you see the right opportunity to buy or sell, try to move quickly. Good opportunities don't stay in the market for too long, especially in a seller's market

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Arian Simaku from Simaku Realty