Need Refi Strategy Suggestions

1 Reply

Hey Guys!

I'm at a bit of a standstill, I'm self-employed and all the lenders I've called require past 2 yr tax return. I tried to have my wife apply for a cash-out but since my primary mortgage is on both of our names, her ratio is a 53% debt-to-income. So next year, when I provide my 2018 tax return, come early 2019 it should knock the percentage down under 48%. I’m hoping to have the underwriter take into account that we both share/split the primary home payment.

My wife and I's financials and credit are pretty solid. Financials: Household income $120K both of us have 800 credit scores. I'm currently invested in Michigan and Indiana. 


My primary home in Miami was $400K (valued at about $411K now) bought in late 2016. my wife and I are both on the loan. We own 350K.

Investment Property 1: Michigan - $49K SFH - rent $725/mth - owe $10K.

Investment Property 2: Michigan - $62K Duplex - rents for $525/mth each unit (total $1050/mth) bought with Business Credit Cards (Fund&Grow) 0% interest for 18mths, after that it’ll jump to 14%!!!! - owe $50K

Investment Property 3: Indiana - $47K SFH- rent $950/mth, Cash $27 (wife&I) + Personal Loan $20K (Discover Loan 6.99%) (wife)

Step 1: 

Investment Property 1 and 2 Michigan: Cash Out:  (Huntington Bank) will do 70-75% of both properties, cover Closing Costs since they qualify for LMIT (Low-to Moderate-Income Tract). My best guess - both properties combined appraise for $60K. I’m guessing I’ll get $45K back. (a 15/1 or 30 yr fix @ 6%)

Investment Property 3: Indiana: Cash Out: NLC Loans’ personal mortgage advisors will do 75% cash out. My guess is it’ll appraise at $80K. I’ll get $60K back (a 15/1 or 30 yr fix @ 6%)

Step 2:

$105K Total Cash-Out (a 15/1 or 30 yr fix @ 6%)

$50K goes to Investment Property 2: Pontiac, Michigan - $62K Loan so I wont eat the 14% interest.

$55K remaining… what is stopping me from putting 15-25% down on long term conventional mortgages on a couple of $40K-50K investment properties?

I appreciate any help!


If I understand correctly, you main concern is paying of the credit cards before the promotional period ends? Would it be possible to file your 2016 and 17 returns? Otherwise, maybe look into transferring the balances onto other business or personal cards at zero percent + BT fee. And work on paying them down as quickly as possible in the meantime. Or try to find a private lender to refinance.