All Forum Posts by: Thomas Reiter

Unfortunately that isn’t an option. It is my and my wife’s first new construction, and I plan on keeping my family in this home for a while.

@Dan Beaulieu

I appreciate the insight. I honestly didn't know the payments were just interest, and not towards principal. This makes me feel much better. Also, knowing that they can offer extensions is a huge relief as well. HML sounds like it will probably be the best option. I will probably reach out to some local lenders and find out about my options.

@Dan Krupa, I do have a w2 job, but I don’t want to forever, that’s why I’m here! But I will definitely PM you. 

@Jaysen Medhurst, thanks for the reply.

But yes, I am referring to an Adjustable Rate Mortgage. I will check out HELOC, I guess I had that backwards from refinancing. I was thinking HELOC had more fees and higher rates, but that's great to know. And as far as HML, I guess I'm still trying to understand how it would work, especially with it being a 12-18 month term. On a 50k property, I'd be paying at least 4K a month right? Or is it one large balloon payment at the end of the loan term.

Hi all, I am just getting my feet wet in the world of real estate investing. I want to start out doing fix and flips locally in my city (Kansas City, MO), and I'm exploring my options for financing my first project. After some research, it seems like my best option is going to be an ARM. I would like to do conventional, but unfortunately, I will not have the cash in hand for a 20% down payment. My second option seems to be refinancing my current home which is currently valued at 300k, but owe 250k, and use the difference to fund the project. My one concern about this option, however, is that I do have a successful flip, and I put the amount back into my current mortgage, would I be able to refinance again to bring my mortgage payments back down to the original? My third option, and really last resort, is a HML. This option worries me because of the interest rates, and the short term of the loan. I still have bills to pay, and a family to feed, so this option seems a bit too risky for me.

So, between;

-ARM

-Refinance current home

-HML

Any input or opinions would be helpful, or any aspects I may have missed, or might be ignorant to at this point. 

Thanks!