All Forum Posts by: Xela Batchelder

I am trying to figure out if I should offer cash, and then refinance, or get a mortgage upfront. The properties I'm looking at are not BRRRs. (I am doing that with a BRRRR, and the advantages of cash than a refi is much more obvious in that situation.) The appraised value won't probably go up much, as I won't be putting a lot of work into them. For me,+ the disadvantage would be doing only one deal at a time, but if cash to refinancing season isn't too long, that wouldn't be a huge problem. I am wondering if the advantages are no points, better interest rates, and better-negotiating power. Would I be able to get better rates long term on a refinance? Would fees and points be lower on a refinance?

Details: Properties I'm considering are in the $130,000 to $180,000 range. I probably have to use my HELOC to have enough cash (though it is about half the % of the mortgage rates I'm being offered for investment properties). The properties are SFH or Duplexes. I will not be owner occupying the properties (which seems to be causing a lot of the issues with poor rates).

Some helpful suggestions I could use - companies and suggestions for refinancing companies with great rates and short seasoning time periods, or mortgage companies with better rates for investment properties (I've been prequalified by a few, but rates are in 5.9 to 6% rage - is that high?

Thanks for any suggestions or help!

@Brian Gerlach - My goal is cash flow to quit my job. Just got my offer accepted today! Very specific strategy is not clear yet, but trying to just look at the numbers, and trying a few different strategies to figure out what works best for me. This first single family, the plan is for it to be a BRRRR. Putting in an offer tonight for a Duplex. I think a mix of a few different things BRRRRs for recycling my cash, and working on building up multifamilies is the plan for now. Thanks!

That worked we're approved with PenFedCU - thanks!

@Brian Gerlach - looking into them now.  Thanks!

@ James Miller Yep, just joined two credit unions to make this easier.

I just tried this last week, and because we don't live there the first place I applied turned us down because they don't do HELOCs on a rental.   (Mortgage Free, was our first home, now a rental.)  I applied online, so it didn't satisfy some bot. I need to try other institutions I assume.  But a disappointing first step.

@KyleJ. Thank you very much!  

Kyle J.

Working on qualifying for a mortgage today.  My credit rating is super high according to my Chase ap (experian), and my discover card (trans union).  My score is super high (not sure it is safe to mention the score here), well into the 800s on both of these reports (about 6 points difference between the two agencies).  

When they pulled for a mortgage the Experian was more than 82 points lower, and Trans Union was 113 points lower.  He said mortgage loan reports are different, but admitted nothing weird stood out to him.  But my middle score ended up 10 points lower than I can for a loan with that bank (ok for other banks, but bad rates).  Just annoyed I walked in thinking I had amazing credit, and these mortgage scores are so far off from what i've been seeing from my banks for years now.  

Since I don't know what is wrong, I don't know how to get it up, or just really weirded out by being so blindsided today.  Any advice, or did anyone else know this was a thing?  How can I learn how to improve it?

Thanks!