All Forum Posts by: Jason Leavitt

Darius, if you are carrying different amounts of liability coverage across different properties and then you also have an umbrella policy that starts at a specific amount you may either have gaps that are not covered or you may have doubled up coverage on certain properties in which case you’re paying more than you need to be. You may want to discuss this with your insurance agent.

You may not need the income to qualify, it just depends on what other income you have to bring to the application. But if you have a mortgage on the rental property you may very well need the offsetting rental income to keep your debt to income ratios within guidelines (yes, 50% in many cases).

Yes, many lenders have a seasoning period before you can do a cash out refinance. So I would check with the lender you plan to use for this.

Wow, that's a big jump on value, that's great. Ask your lender about those facts being used to remove the PMI. Getting a heloc will probably require a new appraisal so maybe that can be used to prove the PMI is no longer needed as well.

As I understand it you could potentially do FHA for owner-occupied up to a 4-unit property. A five unit would be commercial and conventionally needs 25% down.

Only 3% down on a 5 unit? 

You’re buying this way under market value or you’re able to add $100k in value with only $10k in repairs? If so that’s a heck of a deal. 

The advice you’re getting is all over the map here. Contact your insurance company, this is why you have liability insurance. They will advise you on your next steps. Though I would be in communication with the PM as well so you know how they are responding. 

If you need to use the rental income to qualify for the refinance then you would want to rent before you can refinance so you can show the lease in place.

PMI can generally be removed when the LTV drops below 80% on the first mortgage. lenders will remove it automatically when you drop below a certain percentage but you may be able to request it to be removed sooner with certain verification. You should check with your specific lender.

For a cash out refi on an investment property you probably need to get the LTV below 75%.

Hope this helps. 

Congrats on the acceptance and the upcoming move. PSU is right in town (west side) but with your budget (which will be tight for a 4-bed in Portland) I’d look in Saint Johns, SE Portland, North Portland, Beaverton/Raleigh Hills. There are some great neighborhoods farther out but will be more than 30 mins in traffic (Gresham maybe). Vancouver might be cheaper but I don’t know much about it’s neighborhoods. 

Hi Tyler, I’m also originally from Eugene and own property there so happy to help how I can. I’ll send you another realtor recommendation as well. 

-Jason