All Forum Posts by: Warren Rubin

Aloha Zaylen, welcome to BiggerPockets!

I'm also a beginner investor on Oahu. That's great that you're seeking to further your education using podcasts and books. It sounds like you're on the right track.

I am also seeking financial freedom through RE, but I do diversify my portfolio into stocks also.

I wish you the best of luck on your future deals! We should connect sometime!

Warren Rubin

@Rick Pozos That's a great idea! I just told him about this and he's going to see if he can negotiate something with the seller. 

He just told me that him and his co-signers were able to get pre-approved for $470k.

I did offer him a lease-option deal. I would purchase the property and essentially buy them some time to get traditional financing in place. 

@Nathan GesnerThanks for the advice! I feel like hard money may not but their best bet but I'll still let him know about it to provide him with options.

Backstory: A friend of mines, who isn't on BiggerPockets, has been offered to purchase the home that they are renting. I have offered him a few options, but he would like to see if anyone has any other creative solutions.

There are 2 main challenges that he is facing:

1.) He can't get approved for traditional financing because his current income it too "new." He has tried to bring on 2 family members as co-signers but they still aren't able to get approved for the mortgage that they need.

2.) There is a reverse mortgage (RM) on the property, so time is of the essence.

Property details:

Type: Single family residence

RM payoff as of April 2020: ~$470k, we are guessing it's around $480k-490k at the time of this writing (Nov 2020)

Market value: $700k-$750k, based on recently sold comps of same exact home

The seller is asking for $70k proceeds from the sale of the home.

Any advice or tips are greatly appreciated.

Thank you in advance!

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@Brent Coombs I like to think I know what I'm up against but like they say, you don't know what you don't know. I'm trying to see if there's other creative ways to tackle my situation but I may be limited due to my high DTI. So I think I may need to bring in a cosigner.

Finding the deal is the next step once I can tap into the equity that I have. 

I beat myself up quite frequently on getting emotionally invested in that property... I feel like I've learned my lesson but I won't really know until the next deal.

@David Kelly

No, I don't have any liabilities that I cosigned for. I do have a cosigner for the out-of-state investment property that I closed on recently.

I'm not self-employed and nothing is paid for by a business(es). I have no student loans. No loans with less than 11 months left of payments. 

I may be trapped in a corner right now as far as my DTI is concerned, so I am working on brining on a cosigner now.

@Brent Coombs I've been debating on paying off the auto loan but I got a great rate and that's what's been holding me back, but I think the next move is to get rid of the loan.

Great point on the "V" part on "LTV." My threshold was 80% LTV but I am starting to feel a little bearish of my market so 75% LTV might be the safe bet.

Borrowing an extra ~$130k would increase my total PITI payments by about $357/mo.

The second property wasn't that great of a deal. I even hesitate to call it a deal. I was able to use OPM to get into the deal for very little out of my pocket but I got emotions involved with that property so I'm hoping not to make the same mistake on the next one.

I plan to use the cash out to fund my first BRRRR deal.

Mortgage & Property details:

Property type: Single family residence (house hack)

Property value: $800k-$830k (based on recent sales & tax assessed value)

Mortgage Term: 30 yr fixed

Principal Balance: ~$507,000

Interest rate: 3.25%

First mortgage payment: Feb 2020

Principal payment: ~$870

Interest payment: ~$1,377

Escrow payment: ~$289

Total payment: $2534.03

Net operating income: $2,900

Hi All,

I would appreciate some advice/feedback on my current situation. I would like to access some equity in my property for my next investment property. My two options are a cash out refi or HELOC. I have gotten quotes for a cash out refi from 3 lenders this week, with the best being a 30 yr fixed @2.625% with $2,774 in points (not sure what other fees I would need to pay). This new mortgage (principal & interest) would be $2,602/mo.

Challenges that I'm currently facing:

- DTI is too high at around 65% because of 2 new mortgages + auto loan under my name.

- I have a Mortgage Credit Certificate on this property (house hacking). From what I know, I forfeit these benefits if I refinance.

Goal:

- Cash out refi or get a HELOC such that the PITI payments are equal to or less than the NOI of $2,900 and my LTV is @80% to avoid PMI.

I have family members who are willing to cosign with me but I prefer not to go that route just yet, unless absolutely necessary. My 2nd property is an out-of-state investment property that I just closed on in July 2020. Can someone confirm that I need to show 12 consecutive months of rental payments before the debt can be disregarded when calculating my DTI (I was told this by a loan officer)?

I have not yet tried to apply for a HELOC because I know my DTI is too high, but I can't decide whether to bring in a cosigner or wait until I can show 12 consecutive months of rental payments to lower my DTI... I'd really appreciate any advice, opinions, or feedback.

Thank you for reading!

Mortgage & Property details:

Property type: Single family residence (house hack)

Property value: $800k-$830k (based on recent sales & tax assessed value)

Mortgage Term: 30 yr fixed

Principal Balance: ~$507,000

Interest rate: 3.25%

First mortgage payment: Feb 2020

Principal payment: ~$870

Interest payment: ~$1,377

Escrow payment: ~$289

Total payment: $2534.03

Net operating income: $2,900

Hi All,

I would appreciate some advice/feedback on my current situation. I would like to access some equity in my property for my next investment property. My two options are a cash out refi or HELOC. I have gotten quotes for a cash out refi from 3 lenders this week, with the best being a 30 yr fixed @2.625% with $2,774 in points (not sure what other fees I would need to pay). This new mortgage (principal & interest) would be $2,602/mo.

Challenges that I'm currently facing:

- DTI is too high at around 65% because of 2 new mortgages + auto loan under my name.

- I have a Mortgage Credit Certificate on this property (house hacking). From what I know, I forfeit these benefits if I refinance.

Goal:

- Cash out refi or get a HELOC such that the PITI payments are equal to or less than the NOI of $2,900 and my LTV is @80% to avoid PMI.

I have family members who are willing to cosign with me but I prefer not to go that route just yet, unless absolutely necessary. My 2nd property is an out-of-state investment property that I just closed on in July 2020. Can someone confirm that I need to show 12 consecutive months of rental payments before the debt can be disregarded when calculating my DTI (I was told this by a loan officer)?

I have not yet tried to apply for a HELOC because I know my DTI is too high, but I can't decide whether to bring in a cosigner or wait until I can show 12 consecutive months of rental payments to lower my DTI... I'd really appreciate any advice, opinions, or feedback.

Thank you for reading!