All Forum Posts by: Asher Anthes

So, I currently have three properties. One leveraged 80-10, the second property I'm about to close an 80-10 refi on. The third property I hold free and clear right now, just purchased it and about to rehab and get a tennant in.

I was thinking about doing a 75% LTV HELOC on the third property, but I've been thinking about the future of the prime rate and how increases would really hurt my cash flows. I'm buying the property for $43,000, 6-7k in repairs, ARV 65-70k.

If I max out all three of those lines now the payments aren't bad. But if prime does get back to its histroical average of almost 10%, that will dramatically change my cash flows. What are your guys thoughts as far as the future of interest rates? HELOCs are quite appealing now, but I don't know if it would be wiser to try to pull out the equity on my third property in another way? Maybe waiting the 6 months to let the equity season.

So, they'll price my loan $400 more if I don't escrow taxes and insurance. I've always thought it's a pretty big advantage to not escrow because you keep yourself more liquid. What are your guys thoughts on escrowing or not?

I'm about to file my 2013 taxes, and I was able to show losses on both of the properties I own after writing off depreciation, interest and repairs ect.

I will be applying for multiple mortgages later this year, and my concern is will those losses negatively affect my DTI ratio and my ability to get new loans.

How do they use my tax returns to caluculate income? Will they go off the Adjusted gross income or will they use my lease agreements? I've also heard that they will not account for expenses such as depreciation and interest, is this true?

Hmm.. thanks @Kyle Hipp . Yeah, I wansn't sure if I could get a commercial mortgage for such a small loan. Which lender do you use, and do they lend in north carolina? And.. have you considered interest only options with 5 year terms? I was thinking of that option to increase cash flow, and invest the money insead of pay down principal at 5%.

Also, will the commercial lender base the value on cap rate or comps or both?

And @James Wise

I'm going to look more into fannie mae delayed financing. But if I have to go off "new value" like you say, A commercial loan may be more attractive if I can pull out that much more cash.

Hmm.. thanks @Kyle Hipp . Yeah, I wansn't sure if I could get a commercial mortgage for such a small loan. Which lender do you use, and do they lend in north carolina? And.. have you considered interest only options with 5 year terms? I was thinking of that option to increase cash flow, and invest the money insead of pay down principal at 5%.

And @James Wise

I'm going to look more into fannie mae delayed financing. But if I have to go off "new value" like you say, A commercial loan may be more attractive if I can pull out that much more cash.

right, well that was my backup plan. I've found a few lenders that will do that, but I thought fannie mae had a delayed financing program that I could use to finance this property shortly after closing, as long as the loan amount isn't higher than the purchase price + repairs.

I'm closing in a few weeks on an investment property for $40,000 cash. I'll repair it and get a tenant in (should rent for $900 a month) and the ARV is $65-$70k

I want to pull the cash out as soon as I can, but having a little trouble finding lenders. Do you guys have any suggestions on where to look? And what are the best terms I'll be able to find. I'm hoping for 75% LTV (as long as loan doesn't exceed purchase price + repairs) and 5-6%??

Also, is it possible for me to get a HELOC or a commercial loan on this property?

Get a heloc on what? My OO house? I doubt I can do that before the 6 month minimum seasoning period. At least that's what I've been told by most lenders. Is there any way to get a HELOC on an investment property? I've heard it's pretty much impossible right now

Why do you say there will be deflation? Wouldn't the constant printing of the dollar cause it to lose it's value? I'm not really familiar with how a deflation scenario would play out with the dollar?

Rich dad's guide to investing, and the millionaire next door. Great books