All Forum Posts by: Chris Paez

this is great, thank you!

Ill be stepping into a similar situation soon and I am torn. That exemption makes it feel like its the right thing to do. The thought pushing me to do it is that with a good chunk of money you can have more opportunity to get into deals even in expensive areas. I don't think waiting is the right course of action tho, but be cautious and make sure you keep a chunk so that if there is a break in the market you can still capitalize..... And then there is also the fact that no matter what happens in the next 10-15 years you will just keep making money on that property no matter what happens. :/ safe and secure versus bold and uncomfortable..

@Wadner Cortez Yeah exactly. Im doing this thing on my days off and its quite a chore. About to go for another inspection in about ten minutes. Id love to be able to stay in touch cause I feel like everyday I find out something else that has to be done a different way. So far we are in week 3 of construction. the whole floor of the garage has been demoed out and Im trying to get my plumbing to pass today. We haven't been hit up about uncovering the sewer yet but I'm sure that is next. 

 gotcha! thanks man! 

Well I thought it would have an impact on how I look on paper for the future. But In the same vein the property would look better on paper as well. I'm always attempting to get loans that are %5 down and Im calculating my tax returns to hit just the right numbers for the purchases, so I guess I am always feeling like my DTI could make or break my loans. Are you saying that for example if I just threw that $115 extra toward the principle every month it would benefit me more? I know it would but i feel like I'm not seeing the whole picture.

Thank you for the help.

Im am so happy to hear of this situation! So does this mean that In January it will be the standard or will there need to be more factors for it to be accepted across the board?

@Chris Mason I just love feeling stuck on something and coming on here and getting such valuable info. I'm about to refi a rental property and I was wondering if paying points would be worth it to me. After reading this I'm still not sure, but I will make a better more educated decision now. Thank you for the valuable points you made.

my situation is something like this:

-I can pay $7,000 in points and free up $115 in cash flow. 

-This is the last refi I'm planning on this property and I will be getting cash out. (thats probably what everyone says!)

-I like the idea of getting a better DTI ratio for my next purchase but I'm self employed so I could technically take less write offs and claim more to achieve the same DTI for a smaller one time payment in taxes.

Laying it out right now makes me think keeping the cash instead of paying points would probably make most sense...    

Thank you for putting it out there! @Michael Eng

just got off the phone with a local bank and thats it. It's not considered multi... which has a slight benefit for refi. But either way it gets the rates of a non occupied rental. Thank you! @Derrick Aragon

Thank you for the advice this is exactly what I needed to hear. The ADU is a separate address and seperate utilities. I will move on with my cash out refi as it is. You have helped tremendously!

To refi now or wait...

I am at a point where I am about to refi a rental property in Reseda, California that is undergoing construction of a garage conversion to a ADU. Im wondering if it would be better to refi now while it is a SFR or wait until it is complete and rented out as a 2 unit property? Is there benefits to loans for small multis cashflowing $750 per month. Or is there perks to getting the refi done in its current single family state. Thanks in advance!