All Forum Posts by: Dylan Wickersham

Current Mortgage Balance 121,000 3.875% $902/month rented $1700

Heloc for 50k 9.6% $442/month (paid by new investment)

Total: $1342

Cash out refinance: 7.25% $1549

$200/month difference or $2400/year or $72,000 over 30 years. This doesn't account for the new amortization. I think somewhere between 6% and 7% you're paying more interest than principle over the life of the loan. 

@Jay Hurst do you lend heloc's on investment properties?

 I should have done a cash out refinance 2 years ago. Rate is 4.25% and I just don't want to mess with it. Heloc has a lesser payment because I have less borrowed at the higher rate.

Thank you Ian and Chris! I've spoken with my mortgage broker/friend and she suggests a line on one of my other investments. I may start another post for this question: Does anyone know of a good lender that does HELOCs on NON-primary residences? I have 150 in equity in my first investment.

What kind of interest rate and terms would you look for on $50k for my down payment on a deal. Maybe I'm asking the wrong group here. I have 3 single family homes that I've purchased on my own with 30 year fixed financing. Looking into a total OPM deal. Property meets the 1% rule, is a student rental with a lease for August at 20% COC return (if I were to fund the down payment).

Closing costs are covered. I'm using additional $$s of seller credit.

Good point there Chris. I've bounced it off a few friends and I think the savings is around 8% of overall monthly payment and 15% in cash flow. A bird in the hand is better than 2 in the bush. I think I'll buy it down.

Thank you Zach. That's great insight. I guess the only question is. How low will they go? 5%? 4%?

I'm getting a seller credit at closing for $8000. My Mortgage broker at Ruoff says I should use $4500 for closing costs and 3500 for rate buy down (3900 gets me to 6.25%). This saves me approximately $100 per month (39 month payoff). Ruoff has a credit for $2000 towards a refinance within 4 years (48 months). Does anyone think that Rates will drop sooner than 39 months by 1% or more?