Torn...Would you refi????? - Posted by Dan-fl

Posted by Dan-fl on January 26, 2002 at 15:39:52:

I have alot of write offs, thanks to my real estate but this leaves me with very little income on paper. So my debt ratio is off

Torn…Would you refi??? - Posted by Dan-fl

Posted by Dan-fl on January 25, 2002 at 14:57:31:

I have a SFR I paid $23,000 for 3 years ago from a tired landlord and he rehab it( new roof,paint,etc 6 months before I bought it,so it is still in great shape.It was owner finance to me at 7% for 15 years,$179 a month mortgage and taxes and Ins are $80 a month.I rented it out for the last 3 years section 8 at $840 a month,so cashflow is $581 a month.I don’t ever plan on selling this cashcow.So I will always keep it as a rental,but my equity will always be stuck in the house.Unless I refi out.The house is now worth 45,000.I can refi out 75% LTV,no doc stated income at 7.5% for 30 years with mortgage payments at about $230 a month and pull out about $12,000 in cash,I could use for funding on a couple of other deals I have going on right now.I would still be cash flowing $530 a month.I little more info,I owe about $17,000 on the home now.What would you do?

Question - Posted by Tim Jensen

Posted by Tim Jensen on January 26, 2002 at 07:25:07:

Dan,

I am wondering, is there a reason you want a stated income loan? I would think that going to a regular bank would be cheaper interest rate wise.

As for refiing, I would keep financing in place and see if you could get a line of credit instead. That way you only pay interest on the money you use and are more likely to use it for investing only. Another perk may be the interest rate. Right now I am paying 6.25% on my line of credit, try and get non-owner occpuied mortgage at that rate, plus its an interest only payment.

Just an idea,
Tim

Re: Torn…Would you refi??? - Posted by Kent C

Posted by Kent C on January 26, 2002 at 04:41:47:

If you will use the money for investing into other money making’s…refi. If it is for vacationing, I would not.

Kent C

Re: Torn…Would you refi??? - Posted by Kristine-CA

Posted by Kristine-CA on January 25, 2002 at 17:17:36:

Dan-fl: I agree with Eduardo, in essence, about the numbers. If you have deals lined up, it seems that a new loan would be a great way to be your own hard money lender. And the price/interest rate is right. One more thought: does your seller want/need to be bought out on his note? Could you get a discount by paying it off now, maybe putting a little more cash into your pocket for future deals?

Sincerely, Kristine

Ripped…I would refi!!! - Posted by Eduardo (OR)

Posted by Eduardo (OR) on January 25, 2002 at 15:19:38:

Dan–

Your payment goes up by $51 a month. For that you get $12,000 to play with. Can you invest the $12,000 to give you a return of more than $51.00 a month? I would think so. All you have to do is get more than 5.1% return on your money. (Annualizing: 12x51=612. 612 is 5.1% of 12,000) --Eduardo

–Eduardo (OR)