All Forum Posts by: Anita Smith

Hi, I have a property under renovation in Branson that we just purchased in January. I intended to rent the property, however; we are about to sell a home in Virginia, which will be a capital loss, and it has me thinking that this would be the year to pit another sale against that for considerations of capital gains tax. And while I wasn't thinking of a flip intitally when I bought it, the changing situation with the other house has me considering it. It's not like I'll make a lot of money on a flip, it would really be just to get into a different, short term rental property (which zoning restrictions do not allow for at this place, which I did not find out about until we almost closed. Sadly, I relied too much on the 'expertise' of my agent who had no idea). Luckily, I loved the property enough to go, 'oh well, I guess we'll get into a long term rental...'

Anyway, I really do love this property and feel like it's a keeper. But - we also wanted a vacation rental way more than we wanted a long term rental property, and don't really have a down payment for another property.

Anyway, I'd like to hear things I may not be considering, and I'd love to hear some advice for how to approach this decison!

Hi! I'm brand new to the community. I'm looking to buy an investment property. The rate has been quoted at 4.75%, with 2.55 discount points, and I'm paying 20% down. But the 2.55 discount points? Ouch. I asked if I could waive paying discount points in exchange for a higher rate, because the break-even point for me is 6 years for that, and I will very likely refinance before then, so it feels like lighting over 5k on fire to me. 

They say that isn't possible to do that because it's federally regulated, and directed me to look up the LLPA tables. Sure, all fine and well. But the tables still don't answer the question as to whether it legally HAS to be taken as discount points at closing, or if it can be applied to the base rate. But I always thought you could ask to pay no or less discount points in exchange for the higher rate, I mean, what is the difference to the bank, really?

At 4.75% it's already a higher rate, because it's an investment property...so aren't those also LLPAs being calculated into that base rate? I'm quite confused on this and any help would be much appreciated.

All together it makes the closing costs come in at over 10k. Wow, to think I was naive in thinking it would be around 5k to close the loan...