Best refi product you have tried lately?

4 Replies

Picked up a few single family homes in the last few months. They have been remodeled (completely gutted, rebuilt, and ready to be rented). ARV on the first should be around $185k (I have $130k into it with the purchase that came from a private loan and repairs that were put on credit cards with 0% apr for 18 months). The second ARV is around $145k and have $110k into it (private loans to purchase and credit cards to rehab). Having a hard time getting a refi with a local bank since they want to see tax returns and I left my W2 job in Jan. To make matters worse the last 2 years I have taken every penny I made from my previous properties and rolled it back into the properties to generate more income. By doing so I have increased the income from $20k a year to $70k a year, but of course by doing so, its showing the property did not per say make a profit. Mix that with the fact I have not pulled any money as pay from the property makes them all shy away.

What companies has anyone used that dont kill you with the points, fees, and interest. I see a bunch of them on BP being advertised, but am sure there are some that are better than others. I prefer a 30 year fixed, however theses will cash flow fine with a 15 year. Also have excellent credit, although that does not seem that important anymore. lol

Originally posted by @Pete Schmidt :

Picked up a few single family homes in the last few months. They have been remodeled (completely gutted, rebuilt, and ready to be rented). ARV on the first should be around $185k (I have $130k into it with the purchase that came from a private loan and repairs that were put on credit cards with 0% apr for 18 months). The second ARV is around $145k and have $110k into it (private loans to purchase and credit cards to rehab). Having a hard time getting a refi with a local bank since they want to see tax returns and I left my W2 job in Jan. To make matters worse the last 2 years I have taken every penny I made from my previous properties and rolled it back into the properties to generate more income. By doing so I have increased the income from $20k a year to $70k a year, but of course by doing so, its showing the property did not per say make a profit. Mix that with the fact I have not pulled any money as pay from the property makes them all shy away.

What companies has anyone used that dont kill you with the points, fees, and interest. I see a bunch of them on BP being advertised, but am sure there are some that are better than others. I prefer a 30 year fixed, however theses will cash flow fine with a 15 year. Also have excellent credit, although that does not seem that important anymore. lol

 If your net positive cashflow from the rentals, using the post-refi mortgage payment not the current one, is 2.5x your personal housing expense and you have no consumer debt (such as if you pay it all off with refi proceeds), there's a chance it could be done based purely on the rental income, as a Fannie loan. You say they will cashflow fine on a 15YF, that means this might be viable on a 30YF even with no day-job.

Every banker I have talked to said they will only finance investment properties at a 15 year fixed under a commercial loan.  Not sure if thats an SC thing or not. If I lumped the mortgages of all 10 of my properties together under 1 mortgage with a 6% 15 year mortgage I could pay it with the rent from less than 3 of them. So I guess you can say they are cash flowing pretty good. The issue they are having is the last 2 years I rolled 100% of my profits back into the property to generate significantly more income. By doing so, that shows a loss on my taxes for the last 2 years.  Now this year will be a different story, but I dont want to wait 7 more months to get these refied and free up some more of my cash flow for the next. 

Originally posted by @Pete Schmidt :

Every banker I have talked to said they will only finance investment properties at a 15 year fixed under a commercial loan.  Not sure if thats an SC thing or not. If I lumped the mortgages of all 10 of my properties together under 1 mortgage with a 6% 15 year mortgage I could pay it with the rent from less than 3 of them. So I guess you can say they are cash flowing pretty good. The issue they are having is the last 2 years I rolled 100% of my profits back into the property to generate significantly more income. By doing so, that shows a loss on my taxes for the last 2 years.  Now this year will be a different story, but I dont want to wait 7 more months to get these refied and free up some more of my cash flow for the next. 

Those are ludicrous terms.

There are 30 year terms out there for commercial/investor loans with no income verification so your job or taxes aren't an issue.  If you can go Fannie, do that, but if not, the money's there if the property's not rural.

Find a better broker.

Stephanie

@Pete Schmidt I've gotten loans through several lenders that will loan based on the asset and not the borrower.  They will only look at credit score and the remaining underwriting is on the income/expense of the property itself.  Message me if you're still looking to refi.