All Forum Posts by: Gabriel Smith

I agree Marshall. Bill has a good point about don't fix what isn't broken. 

I first bought the home in 2008 5% down on a FHA loan. We have refined since then quite a few times. Hopefully this will be the last. I will definitely check on that but I was always under the impression that the FHA always had PMI no matter what. But hey I'm new to this and I've been wrong before.

Good to know about Henderson! I had Jessica Joles over to tell me what she thought about the property and she was awesome. Hard to part with 11% but may be worth it. The home doesn't currently have central air but if I put it in do you think I can raise rent $50 a monthly? Thanks for your help man.

Thank you Bill. Very interested in how to get rid of PMI without refinancing into a conventional loan and I will be checking first thing Monday morning. The furnace and water heater still work fine but 33 years on the furnace and 10 on the heater.

I feel like I can also rent it out easier with brand new furnace and AC unit but I may be naive. I don't really like the ARM either so I wanted to see what others thought in case I was missing something. I really don't see the value in using every cent the property makes to pay the home off quickly anyway.

Your wisdom I greatly appreciated

@Bill S.  I've tried that repeatedly to no avail. Nothing pops up. But thanks for trying! I've been told using the Android smartphone may be the issue.

 Good point about financing the repairs at a higher mortgage rate for the next 30 years. 

I apologise for leaving a few things out in the beginning. This is my primary residence. The home is worth about $220,000(agent not appraisal) and I owe 133,000. We are moving in with family to save some money for another investment property. We would like to update the furnace and water heater and get it rented as my first ever rental property. 

The roof is less than a year old with I.R. shingles and most things here are new or good condition which IMO should keep cap ex low for me. 

I currently have a 4.25% FHA so I would like to refi conventional. It's I believe the bank said 4.65 and do a HELOC after. If I continue to pay about $900 in the new mortgage I'll actually pay the home off 3 years earlier than my current FHA loan. I can rent the home for 1500/m cash flow will be about 600 minus operating costs.

The 10/1 was explained as locked for 10 years @4% then changing to prime once a year, every year after that. I will double check for sure though!! Also if I was able to pay an extra 900 amonth the home would be paid off in that ten years. Not really realistic for me but I like looking at all of the options.

That 20 K I want to pull out is for quite a few little repairs to get it rent ready and help with moving costs. Others mentioned making more available in the HELOC than the 20k and that is an option, but I don't really need it. If I just sold this house I would have some cash to invest in a rental but I already own this one .

I will definitely follow up! 

Thanks Bill!

Good point Russell. I'll be going over these posts all weekend and crunching numbers. There's just a million ways to think about it.

I forgot to mention the HELOC is interest only for those 1, 3 and 5 year terms .

Woah. That's a lot of info! Thanks @Peter T ! That's a really good point about the HELOC. 10 years on an ARM is a long time too... which is awesome but scary because like @Brian Armstrong said, no crystal ball. I for sure want to geek out! I will check out the meet-up!

@Marshall Easlick wanted a little more specific info so I'm going to show all the #'s and what the bank is offering. Thanks again guys , you are all awesome. 

First National Bank of Omaha in Wellington CO

Goal;

I need to pull out 20K and get rid of PMI

-I can do a straight cash out refi for about 5% depending on the day on a fixed 30-year conventional mortgage.

-The HELOC options are;

1.99% for 12 months

4.5% for three years

5.99% for five years

-Then the ARM has we already talked about is a 10/1 at 4%.

I owe $133,000 house. I can run it out for $1,500 a month and the mortgage is now $899 on an FHA.

Obviously the goal is to refi conventional, pull cash out for a furnace, water heater and a couple other things.

Jen at the bank is telling me if I refi into the arm at 4% and pay 900 a month, I will pay the house off in 10 years because the mortgage will be less than $800. I've got to look over those numbers to be sure, but God help me I'm actually considering an adjustable rate mortgage.

I guess my question is if those numbers are accurate, is it worth the risk of being trapped in 10 years? I imagine worst case scenario is not being able to sell or refi. With an 18% mortgage rate.

And I apologize I can't seem to tag you guys on my Android phone.

Any any information helps man thank you!

Hi everyone!

I feel like this might be a dumb question but I've got to ask anyway. 

Im looking at financing options to pull about 20K out of a rental. I have a hundred thousand in equity. My local bank presented me with 3 options, a HELOC, cash out refi and a 10/1 ARM at 4% . Not knowing what the market is going to do in 10 years and possibly being at a peak right now it seems obvious an adjustable rate mortgage would be pretty risky but I'd like others to weigh in. I'm new to investing and I want to make the right decision and weigh out all of the options.

I'm near Fort Collins Colorado if anybody knows the market. 

Thanks in advance!

Awesome man! I'm new too and what helps me is just soak up as much info as possible. listen to the podcasts, watch the webinars and read all the books people recommend. Scroll through the forums and if you don't what a term means, learn it. It's like free school. Bigger pockets is incredible, Good luck!

This is all great info! Thank you for putting together the discussion and everyone who posted. I had a feeling you would have to have a contractor licensed to do 203K and I have a feeling nobody would be interested in the job in hot markets. I will have a lot of planning ahead of time if I go this route. Thanks again!

Hi ! Can anybody come to your event or do I have to be a member?