All Forum Posts by: Blake Garcia

@Jay Hinrichs

Hell nah.... banks take no mercy so I cant. That could be a slippery slope. Same a a broken leg that turns into 3 months behind

@Justin Tahilramani

Sounds like 3 years of savings so a good deal compared to the refi costs

@NIcholas Hamel

All the youtubers sound like they do it directly. I have never had 1 that accessible. I figured id have to keep a grand or a week of expenses in checking or just use credit card and pay the balance monthly when its due before any interest accrues.

@NIcholas Hamel

Ive studied it some. Ive not found a bank where you can use it as conveniently to use as a debit card instead of a credit card.

My holdup is that any cash in any account is lost traction.

Im sure it or snowball by balance or snowball by interest rate all work if you stick too it.

Truthfully any extra principle helps.

Are you considering pulling extra cash? You could refi and roll the extra cashflow savings in to speed up the loan

@ben and @john what kind of rates are you getting?

Yes its instead of having a cash balance in checking youre constantly pushing it to the loan then moving around between the debt. Cash in savings would be dead weight because its not actively paid against 1 of the loans. 

@james

From my experience of section 8, if they choose to leave you will get a notice asking about up to date payments on the tenant.

If you choose to end the lease on them, that step will be bypassed because you chose to end it. I was told that my only option for removing them from section 8 program was to actually start eviction or small claims suit. Without taking it that far they will not acknowledge any balance.

Lessons learned... 5 years and 3 houses of section 8.

Do not keep electricity in your name with them paying, even temporarily, because it will become permanent. They will eventually leave you with a bill.

Once someone is past 60 days past due, cut them loose. If they cant pay 1 month the chances of them catching 2 up is slim to none.

Treat section 8 as any other tenant. The "guaranteed" payment has its own strings attached. Once it falls behind its not guaranteed more than anyone else. Evictions all cost the same.

If you miss or delay and inspection or paperwork they will cut off payments even if its the tenants paperwork. They will not pay this backward.

If it will appraise to refi out of pmi definitely worth it. If you dont borrow more than youre current balance yes you are restarting a loan but adding extra principle payment and possibly lowering the interest could make a big difference in shortening your loan. A longer loan length gives flexibility in case you run into a major expense. If all goes well just pay extra on loan.

If you have specifics its possible to find a break even point.

Low / No down payment or 100% financing sounds sexy! I've done it! It's excellent for getting into a new deal or stepping up. It's advantage is you are into a new project way faster than saving up for traditional 80% financing. 

The downside is that you are now borrowing 20% more so your payment is 20% higher and cashflow will decrease because of it. It wont perform like an 80% leverage property because it isn't. If you are expecting to cashflow improvements or other major expenses it has to be taken into account. 

Yes there are owner carrybacks and balloons, but even with the expectation of a refi down the road you still have to increase the equity to 20% just to break even and get out of it. Banks know their exposure and generally lend according to it. That's why they lend at 70-80%. Just be careful of the risk that you may not be able to renew if it cant appraise and you owe a balloon.

The more you put down the better your cashflow will be.