Hi, I'm a new member from the San Jose area

10 Replies


My name is Kit Peery.  I've recently moved to the San Jose area from Columbus, Ohio. I'm in the tech industry, but I'm going to transition to real estate investing over the long haul.

I would love to network with other investors in the area.  The Bay Area is such a real estate anomaly that is much different from Ohio.  I've got a lot to learn, but I'm very excited.

My history:  I've remodeled my own personal dwellings, and I've rehabbed a couple dozen apartments to convert to condos.

My ultimate goal is to buy and hold as much as possible, but flipping to gain that capital will be my means to that end.

Thank you in advance, and I look forward to adding to the community,


@Kit Peery  

Welcome to the site! It is a great site to learn from! I am not sure how many mortgaged properties you currently own, but you should consider BRRR Financing if you are able to. Here is some financing options, after you flip.

BRRR....... Buy Rent Rehab Refinance


A cash out refinance is exactly what it sounds like. It is when you refinance your property and pull equity out of a property. The mortgage can either be paid off free and clear or can have enough equity in the property to make it worth refinancing and pulling equity out. Cash out refinances are available on primary and investment properties.

  • The typical cash out financing is done after 6 months of owning the property, based on ARV and available for mortgages #1-4. Please see delayed financing for less than 6 months after closing.
  • On a primary residence you can pull out up to 80% LTV on a SFR and up to 75% LTV on 2-4 unit multi-families.
  • On an investment property; A SFR if you have #1-4 mortgages you can pull out up to 75% of the equity and a duplex is up to 70% equity.
  • On an investment property; If you have #5-10 mortgages you can only pull out money in the first 6 months (delayed financing) that you own the property, if you didn't originally get a mortgage on the property. As long as the value is there (on a SFR 70% LTV and duplex 65% LTV) You can take out up to the purchase price plus closing costs on the property.
  • RATE and TERM REFINANCE - PROPERTY 5-10 If you are willing to pay the fees and go through two closings.... You can take out private or hard money on free and clear properties #5-10 and do a rate and term refinance with conventional to pull money out on them.
    For a rate and term refinance transaction, the borrower must evidence that the listing has been cancelled, and must not have been listed for sale as of the date of the application.
    For a cash-out transaction, the borrower must provide evidence that the listing was cancelled at least six months prior to the date of application.
  • Cash Reserves Required For Other Properties Owned by Investor;
    • If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second home
    • If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.


Delayed Financing Exception

A cash-out refinance within six (6) months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameters:

  • The new loan amount is not more than the actual documented amount of the borrower's initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV).
  1. 1. SFR mortgage #1-4 - 75% LTV
  2. 2. Duplex mortgage #1-4 70% LTV
  3. 1. SFR mortgage #5-10 -70% LTV
  4. 2. Duplex mortgage #5-10 - 65% LTV
  • The purchase transaction was an arm’s length transaction
  • The purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property. The preliminary title search or report must also confirm no liens on the subject property.
  • The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.

    Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage loan. Funds of gifts are not allowed with investment purchases.

  • All other cash-out refinance eligibility requirements are met and cash-out pricing is applied. This is allowed on primary residences, second homes and investment properties per cash-out guidelines.
    • Ineligible Transactions
      The following transaction types are not eligible as cash-out refinances:
      • The subject property was purchased by the borrower within the six months preceding the application for new financing except if delayed financing guidelines are met.
      • Investor and second home borrowers with 5-10 properties are ineligible for cash-out refinance transactions unless all of the delayed financing guidelines are met.
      • The subject property is currently listed for sale
      • The existing mortgage is a “restructured mortgage”
      • Transactions in which a portion of the proceeds of the refinance is used to pay off the outstanding balance on an installment land contract regardless of the date the installment land
        contract was executed.
      • The new loan amount includes the financing of real estate taxes that are more than 60 days delinquent and an escrow account is not established.

@Kit Peery welcome!

As you have recently learned, the Bay Area market is quite different but it has its own benefits that make it a great place to live and invest.

Come out to the local BP meet ups. There is a great group of people that regularly attend and I am sure you will get some questions about the Columbus market so you will fit right in.

Welcome Kit. It's always good to see other local members. If you have some time please feel free to attend our Santa Clara County RE Investing Meetup this month. Happy New Year.

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