How to pull my money out?
Hi Everyone,
I am hoping find some advise on how I can pull my money out or use other credit card or heloc to replace my problem.
I bought my first rental property on November 14th 2022, I owner was willing to seller finance it to me. Therfore the finacing structure is as follows
Sale Price: $223,000
Down payment: $30,000
Fianced: $193,000
Intrest: 4%
Term: 15yrs
Monthly Payment: ~$1,440
The Market Value of the rental is ~$285,000
I currently have a tenant in there paying $2,000 per month starting December 1st. They moved in on November 15th so I have recieved $2,000 (deposit) and $800 (prorated rent). My first payment to the owner is on Januray 2023. I used my credit card of a credit limit of $25k and $5k cash to pay for the down payment. Unfortantly, the credit card has a intrest APR of %18.99.
My question is: What can I do to get rid or lower the intrest of the credit card?
Personal Background: I have W-2 job making ~$75K/yr. I currently have a primary home in which I have ~$90k in equity. I explored the option of getting a HELOC on my primary home but my debit to income ratio is above 50% therefore, I am struggling to get aproved for a HELOC. I also applied for another credit card with 0% intrest (for 18months) in hopes they will give me $25k in credit line but I have been getting denied. My other option that I want to explore is a business loan since I have wedding videography LLC business.
Thank you in advance!
Gabriel
If in the same shoes, I'd put that tenant deposit in an interest bearing account, to return to them at the end of their lease term. I'd also set aside 3 to 6 months of mortgage payments for emergency purposes.
Then use cash flow from the house, and cash flow from your wedding video business to pay off the credit cards. You might do another side hustle or sell something, and knock that credit card out.
Do you have business credit for your LLC? Some business credit does not report to personal, such as the Chase Ink. I try to use my business credit and reduce what I hold in my personal name.
Quote from @Gabriel Vasquez:
Hi Everyone,
I am hoping find some advise on how I can pull my money out or use other credit card or heloc to replace my problem.
I bought my first rental property on November 14th 2022, I owner was willing to seller finance it to me. Therfore the finacing structure is as follows
Sale Price: $223,000
Down payment: $30,000
Fianced: $193,000
Intrest: 4%
Term: 15yrs
Monthly Payment: ~$1,440
The Market Value of the rental is ~$285,000
I currently have a tenant in there paying $2,000 per month starting December 1st. They moved in on November 15th so I have recieved $2,000 (deposit) and $800 (prorated rent). My first payment to the owner is on Januray 2023. I used my credit card of a credit limit of $25k and $5k cash to pay for the down payment. Unfortantly, the credit card has a intrest APR of %18.99.
My question is: What can I do to get rid or lower the intrest of the credit card?
Personal Background: I have W-2 job making ~$75K/yr. I currently have a primary home in which I have ~$90k in equity. I explored the option of getting a HELOC on my primary home but my debit to income ratio is above 50% therefore, I am struggling to get aproved for a HELOC. I also applied for another credit card with 0% intrest (for 18months) in hopes they will give me $25k in credit line but I have been getting denied. My other option that I want to explore is a business loan since I have wedding videography LLC business.
Thank you in advance!
Gabriel
Hi Gabriel,
Thank you very much for sharing your situation, as many others can possibly relate to you! There are some Non-QM style "HELOC'S" that have more lenient debt to income ratio's with higher CLTV limits. This may be an easy solution to help pay off the high APR credit card!
