Interested in some advice. We own a duplex in Chico, CA and are trying to pull cash out with the Refi. We currently owe 194k and Zillow, Realtor & Trulia have it listed between 324-335k, but it was just appraised at 300k. Our mortgage broker can do 210k (70%), but problem is, we need to cash out 30k, or somewhere closer to that after the fees, etc.
Our first appraisal was very low, unreasonable considering the appraiser had just lost her home in the fire and was complaining to me that the prices were going up in Chico, there were bidding wars, and she had purchased a "replacement" home for 30k more than the listing price.
Our second appraisal came in at 300k.
Not sure what to do. Or should we just sell? We have been working on this Refi for about 4 months now and are exhausted.
Rental Property Investor · Teaneck, NJ · Member since 2016 · 567 posts · 291 votes
7y
@Yern Chao could you setup HELOC on the property or "Line of Credit"?
This works as a credit card on a house - you only pay when you take the money out. The fee to setup it is very minimal, but check with different banks on how much money would they be able to give you on the house
Rental Property Investor · Teaneck, NJ · Member since 2016 · 567 posts · 291 votes
7y
@Yern Chao could you setup HELOC on the property or "Line of Credit"?
This works as a credit card on a house - you only pay when you take the money out. The fee to setup it is very minimal, but check with different banks on how much money would they be able to give you on the house
I just watched the HELOC video, and i believe he mentioned it has to be for current residents. Our duplex has not been owner occupied for 5 years now. But thanks for letting me know about this!
Rental Property Investor · Chico, CA · Member since 2016 · 625 posts · 336 votes
7y
@Yern Chao Welcome! If you sell please let me know first if possible. I would consider hard money. This will give you the 30k you need and probably be ok with taking second position on the loan but a pro can talk with you. If you need a local referral for hard money I have someone I use on my flip houses. Good luck and keep us posted.
Have you checked with other mortgage brokers? I am not sure if things would be different in your area but we can usually get around 80% LTV here in VA on a cash-out refi for residential investment properties. It looks like that would get you a little more than the 30k you need.
I just watched the HELOC video, and i believe he mentioned it has to be for current residents. Our duplex has not been owner occupied for 5 years now. But thanks for letting me know about this!
Correct, HELOC does, but "Line of Credit" can be taken on investment property.
Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
7y
How much money does it make each month? Would you buy it again at $300k or higher as and investment? If the answer is no, then sell it and invest in something you would buy
We have 2 mortgages and one is at 9%. That's why we are trying to refi.we clear $500 a month after we pay the mortgage, water, trash and pest control. Also, we don't live there. I think that is why our mortgage broker is stuck ar 70%
Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
7y
The max LTV is 70% for cash-out refinances via a conventional loan per Fannie/Freddie guidelines. You can get a higher LTV with a commercial/portfolio lender but the rate and term won't be as favorable.