Advice for a newbie !!

5 Replies

Hi everyone!!

so excited to be here . I am new to bigger pockets and real estate investing.  I am from markham ,canada 

my current situation is I have a rental property with a cash flow of 300, current mortgage of 130,000 , condo value about 450,000 . My primary residence i have a second mortgage of 280,000, condo value now is 600,000. And unfortunately for me I have no fulltime job currently.  Just part time . 

my questions are how do I pull out equity from these condos ? Would any mortgage broker lend me money if I have no job to purchase a third property for rental . 

I have good credit score and down payment for a third property.  


What are question I needto ask ? Any advise or feedback is greatly appreciated . 


Justin

Originally posted by @Maggie W. :

@Justin Chang I once had the exact same problem! Tons of equity and no paycheck. No one would work with me. I had to sell one to get the cash out. Hope you find a better solution than I did!

Thank you , for your feedback.  I was just thinking about that like a few min ago ... greatly appreciate it .

 

Originally posted by @Justin Chang :

Hi everyone!!

so excited to be here . I am new to bigger pockets and real estate investing.  I am from markham ,canada 

my current situation is I have a rental property with a cash flow of 300, current mortgage of 130,000 , condo value about 450,000 . My primary residence i have a second mortgage of 280,000, condo value now is 600,000. And unfortunately for me I have no fulltime job currently.  Just part time . 

my questions are how do I pull out equity from these condos ? Would any mortgage broker lend me money if I have no job to purchase a third property for rental . 

I have good credit score and down payment for a third property.  


What are question I needto ask ? Any advise or feedback is greatly appreciated . 

Justin

 There are lenders out there that are willing to do it but don't expect it to be from CIBC or TD.. You probably have to pay a higher rate based on risk "income"

You might be able to do it with your rental property with an A Lender CIBC RBC etc.. if you can prove rental income with leases and bank deposits. I did it with email money transfers from same person beginning of month.. You can try to refinance it at a longer term say 30 years to lower your monthly payment so you will be able to pull out more equity. As long as you can show the bank it will cash flow positive even $50 a month then you should be golden.. One problem you may encounter as with a condo the maintenance fees increase so the bank may want a higher cushion than just $50 a month to counteract when the fees go up.. Also a good credit score can reduce some risk to lender.

Good luck

Hi Hai,

thank you for your feedback . 

do you know any mortgage lender you could recommend with my situation. 

is joining a JV partnership a good idea ?

thanks once again .

Originally posted by @Hai Loc :
Originally posted by @Justin Chang:

Hi everyone!!

so excited to be here . I am new to bigger pockets and real estate investing.  I am from markham ,canada 

my current situation is I have a rental property with a cash flow of 300, current mortgage of 130,000 , condo value about 450,000 . My primary residence i have a second mortgage of 280,000, condo value now is 600,000. And unfortunately for me I have no fulltime job currently.  Just part time . 

my questions are how do I pull out equity from these condos ? Would any mortgage broker lend me money if I have no job to purchase a third property for rental . 

I have good credit score and down payment for a third property.  


What are question I needto ask ? Any advise or feedback is greatly appreciated . 

Justin

 There are lenders out there that are willing to do it but don't expect it to be from CIBC or TD.. You probably have to pay a higher rate based on risk "income"

You might be able to do it with your rental property with an A Lender CIBC RBC etc.. if you can prove rental income with leases and bank deposits. I did it with email money transfers from same person beginning of month.. You can try to refinance it at a longer term say 30 years to lower your monthly payment so you will be able to pull out more equity. As long as you can show the bank it will cash flow positive even $50 a month then you should be golden.. One problem you may encounter as with a condo the maintenance fees increase so the bank may want a higher cushion than just $50 a month to counteract when the fees go up.. Also a good credit score can reduce some risk to lender.

Good luck

 

depends what your goal is.  but 300 income on 320K equity sounds pretty bad.  Even if you get another loan, then you're payments will be higher and it will cash flow negative.