All Forum Posts by: Chris G.

Hey @Ryan Evans and @Brian S. ,

Ive been looking into the Cleveland area and noticed your post. Im interested by the low housing prices and potential for solid returns as a long term hold. Im located in California so it would all be long distance. Im looking at SFH or Multis 2-4 under $80,000. Do either of you two have any pointers on the area? Ive been reading about a lot of new multiunits going up in the city. How do you see that affecting the smaller multis? What works best for you guys?

Any info would be great! 

Thank you,

Chris Gribble

Awesome! Thank you very much @Darrin Carey !

Hey guys,

Im a newbie out of state investor looking into the SFH rental market in Dayton, OH. Ive looked at the market there and think it would be a good place to start out. I am looking for a Realtor recommendation in the area. Preferably someone with ties to a management company and possible contractors.

Let me know! Thank you!

-Chris

@Kiley N. ,  @Paul Defngin is correct. I unfortunately did not put enough down to get that MIP to be cancelled automatically from the FHA loan.

Thank you everyone for the input!

@Melvin List , I like the sound of that as another possible option. I will look into that. Thank you!

Yea thank you @Jason DiClemente !

Even with that and the numbers it looks like I would have to pull off a 4.0% rate. That would allow enough term length savings to pay into the principal to get that 20% equity. If worst case it appraised for purchase price of $197,000

(3.75-4.00)/12 x 181,000 / 100 = -$37 + PMI $122 = Monthly Savings of $85

$85 x 12 x 30 = $30600 - $5000(fees) - $20,000 additional principal = Total savings $5600

So then the final question... at 4% and an appraisal of $197,000

Do I refi to get rid of the PMI saving about $100 a month after spending $25,000?

Or use $25,000 to invest? 

Good catch @Paul Defngin ! Thank you.

So I'll figure worst case $5000 in costs and fees and a rate of 4.25%

Using: (Old Rate – New Rate) /12 x Amount Owed / 100 = Monthly Savings

(3.75-4.25)/12 x $181,000 / 100 = -$75

A new loan would increase by the $75 but would drop the $122 PMI. Saving $47 per month.

$47 x 12 months x 30 year loan = $16,920 in total term savings

So I would say it would be worth it to refi... Right?

Hey everyone!

Here's the deal. I have looked all over and crunched the numbers and wanted to see what the overall consensus is on a FHA to Conventional loan to get PMI removed. Since I put less than the required amount to get PMI dropped off, the only option is to refi into a Conventional. I know all this is subject to an actual Mortgage rate and appraisal, yet, here we go...

Property was bought in Sept of 2015 in Southern California and is house-hacked with two of the 4 bedrooms rented out as I live in the master. That brings in $1100 per month.

Current loan: $188,000 / Owed: $181,000 / Monthly payment is: $1340 / Although I pay into it $1500

Originated 07/2017 / Rate 3.75% / PMI = $122 / Credit 740+ / Previous Appraisal $197,000 / Current Comps $220,000

I ran the whole "Should I refi equation"

(Old Rate – New Rate) /12 x Amount Owed / 100 = Monthly Savings

And figuring a New Rate of 4.25 I got about -$75. If I did refi and drop PMI ($122) would that go against the -$75? Therefore even though it is a higher rate I would actually be saving roughly $50 per month.

Let me know what you guys think!

- Chris