All Forum Posts by: Brendan H.

@Diana Muresan Will do!

@Matt M. Thanks, Matt!

@Andrew Postell Great suggestion!

@Chris Lopez Thanks! I’ll check it out!

Looking for lender in Denver area for Cash Out ReFi on a rental property. Just moved back to the area and looking to leverage one of our properties as it is approaching 50% LTV. 2bd/1ba condo. 63 months with zero gaps in vacancy.

Any recommended local lenders? Thanks!

@Michael Greenberg Agreed! So your own analysis of similar properties in the area referencing their calendars and rates. Think about whether you can make your property more competitive.

Where in general are you looking?

Utilities can vary tremendously. Ours are in FL and the Air Cond bills in the summer are big. Some areas, people want all the TV channels. Near the beach they don’t care so much so you can save there.

Factor in $’s for replacing linens often. Get washable slip covers if you can. Get a good handyman, you’ll use them frequently.

Most guests want things repaired ASAP because you are competing with hotels where maintenance is typically on-site. So your repair fees are typically higher since you will be needing to talk them into heading to your property immediately vs scheduling a couple days out.

Good luck!

@Joaquin Arizpe 100% file a rebuttal! If your bank won’t appeal then get a new bank. I’d get a new bank just for the mere fact they’re telling you it’s against their policy to appeal the appraisal. It’s lazy on their part imo. You’re the one that loses, not them. They’re just being conservative (as are a lot of appraisers).

Even though you’re talking about $/sq ft, it sounds like you have a pretty good idea of what other props have sold for in your area.

Do your own comps and detail out why the appraiser’s comps were wrong (or the wrong houses to use).

I just did this three months ago and bumped my appraisal up by 30K on my primary res. All of which I would have had to bring to the table in cash.

Bottom Line - challenge it!! The more details the better.

@Trey Hedrick Definitely agree, 80/20’s and 80/10/10’s were a big part of the meltdown 10 years ago. Lots of times the 20% second mortgage is a variable rate, so use caution. And sometimes those variable rates have balloons where you have to pay it all back in only 10 years or even 5. The bank may say they have the option to extend it another 10 years, but that isn’t guaranteed. If the market goes South and they need your money, then they can call the note and you have to pay the full 10 or 20% (whatever that second mortgage is). I purchased a couple rental properties on 80/10/10’s in 2007/2008, but I had a plan to pay down the 10% variable second mortgage. Sadly, many people did not, so that contributed heavily to the housing crisis. Just some food for thought!

@Ana Coello I recommend pulling down your own full credit report from one of the bureaus. Experian, Transunion etc. Then talk to a local lender and ask for their list of required items to apply for a home loan. Tell them you’d like to do everything Except having your credit pulled. They should be able to get you some solid ballpark numbers on what you would qualify to purchase. Compile all of those documents. Then, call 9 more banks. Try 3 large, 3 mid-sized, and 3 smaller local banks and provide them with all the docs you now have organized, and tell them the same thing. You’d like to know what options they have for you, and the amount you’d qualify to purchase. You’d be surprised how different each lender can be. If customer service is terrible at one spot then just move on to the next one. I bought another property recently and had the first 7 lenders tell me no.... and the 8th said yes. Sometimes it’s a pain but it’s always worth it!

Question - can the seller back out of our contract? Purchasing a home for 500K, with 30K appraisal gap in the contract. Appraisal came in at 465K, so 35K below the contract price. We are willing to cover 30K. That leaves 5K gap still that we are not obligated to cover per the contract. Shouldn’t the seller be required to honor the contract, cover their portion (5K) of the remaining appraisal gap, and still sell to us? Doesn’t make sense that they can walk away, yet the contract they signed said we would only cover 30K on the appraisal gap. Does this question make sense? Has anyone run into this before as a buyer? Thanks!