how can someone refinance a property with a SALARY JOB ?

3 Replies

Hey BP.

I was wondering is there a way I can refinance 2 properties that I have which are both free and clear WITHOUT a job. I looked into a hard money loan which based off an individuals' assets in total and it is a 30 year fixed but the interest rates are between 6%-10% depending on my credit score. I think the rates are too high. Do you guys have another way I can go about this ?

Updated 5 months ago

How to refi without a JOB ???

Originally posted by @Isiah Ferguson :

Hey BP.

I was wondering is there a way I can refinance 2 properties that I have which are both free and clear WITHOUT a job. I looked into a hard money loan which based off an individuals' assets in total and it is a 30 year fixed but the interest rates are between 6%-10% depending on my credit score. I think the rates are too high. Do you guys have another way I can go about this ?

Yup, these come up once in a while. If you have no consumer debt and your net rental income is about 2.5x (or higher) your personal housing expense, that'll typically translate to a workable DTI.

Prepare to be envious:

The last one, he lived on the East Coat and inherited two free and clear rental SFRs in A neighborhoods in SoCal, quitting his job virtually the next day. He lives with his fiance and she does not charge him rent (bank statements, etc, were scoured by the underwriter for anything that resembled him paying rent!). His property taxes for each property, thanks to California Prop 13, was like $100/mo. Sooooooo yeah, he certainly met that 2.5x rule that we derived at J Martin's annual summit thingie in Oakland, and the cash out refinance closed.

I told you that you'd be envious!

Originally posted by @Chris Mason :
Originally posted by @Isiah Ferguson:

Hey BP.

I was wondering is there a way I can refinance 2 properties that I have which are both free and clear WITHOUT a job. I looked into a hard money loan which based off an individuals' assets in total and it is a 30 year fixed but the interest rates are between 6%-10% depending on my credit score. I think the rates are too high. Do you guys have another way I can go about this ?

Yup, these come up once in a while. If you have no consumer debt and your net rental income is about 2.5x (or higher) your personal housing expense, that'll typically translate to a workable DTI.

Prepare to be envious:

The last one, he lived on the East Coat and inherited two free and clear rental SFRs in A neighborhoods in SoCal, quitting his job virtually the next day. He lives with his fiance and she does not charge him rent (bank statements, etc, were scoured by the underwriter for anything that resembled him paying rent!). His property taxes for each property, thanks to California Prop 13, was like $100/mo. Sooooooo yeah, he certainly met that 2.5x rule that we derived at J Martin's annual summit thingie in Oakland, and the cash out refinance closed.

I told you that you'd be envious!

 Thanks for the feedback. Can you tell me if this is possible. I live in 1 of the homes now me and my wife. She currently works etc. I have 2 year W2 for rental income it does not reflect my potential income. I’m looking to rent and move out turn my 2nd home into a rental. At this point I’ll have a duplex rented and a townhome. I’ll be renting temporarily. For the Potiential rental income for both properties will be 2600. From here I’m looking to refi both at 75% take the cash from both properties and buy a primary residence cash and take out a heloc. Am I being realistic when it come to lenders ?

Originally posted by @Isiah Ferguson :
Originally posted by @Chris Mason:
Originally posted by @Isiah Ferguson:

Hey BP.

I was wondering is there a way I can refinance 2 properties that I have which are both free and clear WITHOUT a job. I looked into a hard money loan which based off an individuals' assets in total and it is a 30 year fixed but the interest rates are between 6%-10% depending on my credit score. I think the rates are too high. Do you guys have another way I can go about this ?

Yup, these come up once in a while. If you have no consumer debt and your net rental income is about 2.5x (or higher) your personal housing expense, that'll typically translate to a workable DTI.

Prepare to be envious:

The last one, he lived on the East Coat and inherited two free and clear rental SFRs in A neighborhoods in SoCal, quitting his job virtually the next day. He lives with his fiance and she does not charge him rent (bank statements, etc, were scoured by the underwriter for anything that resembled him paying rent!). His property taxes for each property, thanks to California Prop 13, was like $100/mo. Sooooooo yeah, he certainly met that 2.5x rule that we derived at J Martin's annual summit thingie in Oakland, and the cash out refinance closed.

I told you that you'd be envious!

 Thanks for the feedback. Can you tell me if this is possible. I live in 1 of the homes now me and my wife. She currently works etc. I have 2 year W2 for rental income it does not reflect my potential income. I’m looking to rent and move out turn my 2nd home into a rental. At this point I’ll have a duplex rented and a townhome. I’ll be renting temporarily. For the Potiential rental income for both properties will be 2600. From here I’m looking to refi both at 75% take the cash from both properties and buy a primary residence cash and take out a heloc. Am I being realistic when it come to lenders ?

 You're going to have to run numbers with someone licensed in your state & investor friendly to figure out if it's viable or not in your particular case. :)

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