Second mortgage to buy investment

[Erik Cardero]

Hi there,
Looking for some advice, I recently decided to get a condo in Orlando for investment and vacation , so and Airbnb type. I have 25k saved so not a lot, I applied for a heloc but due to credit limitations I qualified for a second mortgage, still in the process to get around $60k . I’m a bit hesitant, any ideas I’m favor or against it? 

Appreciate any insights from someone with experience doing so. 

Thanks

[Frank Avallone II]

Hi @Erik Cardero, It would really come down to what the plan is for the money you are looking to extract.

Do you plan on investing into more real estate?

Have you talked to multiple lenders?

[Erik Cardero]

Quote from @Frank Avallone II:

Hi @Erik Cardero, It would really come down to what the plan is for the money you are looking to extract.

Do you plan on investing into more real estate?

Have you talked to multiple lenders?

I want to continue to invest, I live in Miami, the market down here is more expensive so I’m trying to minimize cost and down payment, thinking of an apartment or townhouse under 250k in Orlando as close as possible to attractions for an Airbnb.. but a second mortgage is not flexible like a HELOC so.. just looking for the best angle to use that money …

[Erik Cardero]

seems like a dead end , received a heloan minimum $100k and 12% interest + 9k fees. So not good. Then was declined by a credit union, but I feel the Aplicación online is not the best, decided not to pursue. The fact that my income is trending lower doesn't help bec I usually make more the second half of the year… 

[Erik Cardero]

Quote from @Erik Cardero:

Hi there,
Looking for some advice, I recently decided to get a condo in Orlando for investment and vacation , so and Airbnb type. I have 25k saved so not a lot, I applied for a heloc but due to credit limitations I qualified for a second mortgage, still in the process to get around $60k . I’m a bit hesitant, any ideas I’m favor or against it? 

Appreciate any insights from someone with experience doing so. 

Thanks

I have an update, was able to secure a HELOC from a credit union and was able to use it as a down payment for an Airbnb and so far is working great , I use my cash for closing cost and repairs and and credit to furnish the apartment, been renting it about 85% of the time, pricing it to focusing on longer rentals have a 2 months rentals now.

[Kerry Baird]

What made the difference in the two experiences, getting denied in the first case and approved in the second?  Was it your FICO, a connection you made (banking relationship), or the appetite of the lender?  

Could you PM me the name of your credit union, please, so I can add it to my list of HELOC lenders?

[Erik Cardero]

It's Tropical Financial CU , got 54 k 8.9% $500 fee , just enough for down payment. Was limited by DTI Otherwise could have done better deal.
first case was offered 12% 100k and 7k fee!!! First one was an out of state broker, perhaps they were being greedy, i never called them back. My fico was around 660. 

[Erik Cardero]

Quote from @Erik Cardero:

It's Tropical Financial CU , got 54 k 8.9% $500 fee , just enough for down payment. Was limited by DTI Otherwise could have done better deal.
first case was offered 12% 100k and 7k fee!!! First one was an out of state broker, perhaps they were being greedy, i never called them back. My fico was around 660. 

 Now I’m looking to see if I can refinance the Airbnb, got a 8.125 interest as a vacation with20% down, how are the rates looking now ? Can I refinance as an investment property or even Roa cash out? 

[Raymond J. Rodrigues]

Hi @Erik Cardero, you can probably get a rate in the high 6s low 7s depending on what your loan to value is. I'd be happy to go over any scenarios with you. Feel free to reach out directly.