All Forum Posts by: Tonye Jack

@Adam Walter Option #2 is certainly more in my current wheelhouse as I'm working to build out my portfolio. The cost of the REFI was about $7K at a 3.99% rate. I found some lenders who will provide a combo loan with Renovation and mortgage with the cash I'm pulling out, it puts me in the position to purchase my second property. Thanks for the options and alternatives.

0 Votes

@Kerry Baird Will check those out. Thanks for referral.

0 Votes

@Kevin Sobilo With the appraisal coming in yesterday at $150,000 there's a lot more equity in the property almost $80k.

I've desperately began searching for a small bank with HELOC options as doing a REFI doesn't seem to be my best option. It's either sell or HELOC or take a $50 cash every month for a cash out of $28k.

0 Votes

@Adam Walter good point. My current rate is 3.625%, I just received my new load documents and the new payment at 3.99% is $658! A lot more than I had anticipated. Which is because the home ended up appraising for $150,000 and cash out of $28K. Which is amazing and a lot more than my original estimates, but with that comes an increased mortgage with increased costs. Not sure what the next steps should be, if I should sell or take a $50 cash flow each month?

0 Votes

Hi Kevin, thanks for responding. You highlight a great point about the cash out being put to good use. I have been focusing on the negative of having a lot of my cash left in the deal I do want to use that 13k as money towards property number 2 and not for any other purchases. But when I run my numbers the increased mortgage cuts my cashflow down to $70. It will be more than $40 a month it is almost $120 extra every month.

I also missed the fact that leaving the cash in the deal will be paying interest on money I could use! I've literally been searching everywhere for a HELOC on the property and haven't gotten turn down since it's an investment property.

Originally posted by @Kevin Sobilo:

@Tonye Jack, that is a very good question. I think the answer is less about the numbers you mentioned, although those are important, but MORE about what your future plans are.

If you don't have any plans to use that $13k in the near future then you are just paying interest on money sitting idle. However, if you have intentions of doing something like purchasing another property next year then that $13k will be put to good use and the larger loan amount and added interest is well worth it.

The numbers you talked about are also factors because the more you can pull out the more you can do with it. Also, interest rates are very low now, so it would be nice to have access to that money.

You could also look at a line of credit. That would give you access to that equity if you need to without having to pay interest if you aren't using it. I have a line of credit that I use as reserve funds in case of a big emergency or to jump on an unexpected opportunity.

1 Vote

Hello,

I have a property I purchased for $97,500, with an original appraisal of $100,000. My mortgage payment including (Principal, Taxes and Insurance) is $477. I paid a 20% down payment bringing the mortgage to $77K, I've also completed a rehab putting in an additional $20k into the property. All in cash between down payment and rehab brings me to $42,000. My question is should I refinance at a 75%LTV, my estimated ARV is between $125K - $140k. If I complete the REFI I potentially only get $13K with a Mortgage payment increase to $508 Or hold the equity in the property?

0 Votes

Hello,

0 Votes

Originally posted by @Stephanie P.:

Originally posted by @Tonye Jack:

Hello, I am looking for lenders willing to provide up to 80%LTV on a single family property I will be refinancing.

The property was recently rehabbed and the estimated ARV is between 120k - 130k. The property is based in Columbus Ohio any referrals would be appreciated.

Thank you

Is the property stabilized (no construction and has tenants) and when did you buy it?

The property would have construction completed by the end of the week and tenants shortly after. It was purchased in May. Do you have any financing options?

0 Votes

Originally posted by @Remington Lyman:

Originally posted by @Tonye Jack:

Hello, I am looking for lenders willing to provide up to 80%LTV on a single family property I will be refinancing.

The property was recently rehabbed and the estimated ARV is between 120k - 130k. The property is based in Columbus Ohio any referrals would be appreciated.

Thank you

Most lenders will do 80% LTV on single families. I just did a couple personally.

I'm having an issue finding a lender to do 80% LTV. I spoke with Chris and they only do 75%. could you please shoot me anyone you recently worked with.

1 Vote

Originally posted by @Clay Boykin:

@Tonye Jack What type of loan are you looking for? Are you using conventional or Hard Money. I would suggest you use Hard Money due to the terms and the low rates that lenders offer. I am curious to know also your purchase price on that deal? Happy Investing!

The property was purchased with a conventional loan at a price of $97,500 (paid too much for the property). I am looking for another conventional loan at a 30 year fixed since its a buy and hold property. My main goal is to get equity out through a cash-out refi so I can roll into the next property. Why would you suggest a hard money?

1 Vote

All Forum Posts by: Tonye Jack

Tonye Jack has started 20 posts and replied 65 times.

Post: Newbie: Should I REFI OR NOT

Post: Newbie: Should I REFI OR NOT

Post: Newbie: Should I REFI OR NOT

Post: Newbie: Should I REFI OR NOT

Post: Newbie: Should I REFI OR NOT

Post: Newbie: Should I REFI OR NOT?

Post: Newbie: Should I REFI OR NOT

Post: Refinance Lenders at 80% LTV

Post: Refinance Lenders at 80% LTV

Post: Refinance Lenders at 80% LTV