All Forum Posts by: Jenny Picot

Quote from @David M.:

@Jenny Picot

"Yes," using cashout refi and/or heloc would be the way to go. I haven't looked into heloc's recently, but I thought their terms still haven't been that good, doublely so now with rising rates. It really comes down to the "numbers" in my viewpoint and what is it "worth" to you. Yes, rates are higher now, but if it lets get another good deal and you are "making" more money/wealth then having a higher cost of money is just part of doing business. I think your LTV will the limiting factor since you can't go as high with a cash out refi than as your puchased. However, you can still get sufficient cash to satisfy your need.

I hope that kinda helps...  Good luck.

Can you explain what you mean by LTV in my case?

Quote from @William Ward:

Hey Jenny,

Congrats on moving on to your next property. If this were my situation, I would have to decide on whether I am considering a distressed property or not. If you want to find a distressed duplex to fix, hard money loans could be considered so you can save your current interest rate. Then get tenants in so you can cash out refi. If not distressed, I would consider a cash out refi unless the higher rates will kill all of your cashflow. But that's just me! Good luck!

I don’t think I want to do any fixing up if possible!

Quote from @David Mackin:

@Jenny Picot have you reached the point where you are no longer paying mortgage insurance? 78% LTV.

This could make a difference in your decision.

Also, are you going to house hack the next property as your primary?

My lender was able to get me .25% more instead of PMI and then I refinanced in 2019 to the 3.37% so I never had PMI on the property. I was planning to get a lower priced duplex out of state as an investment and not a primary residence. Which is my problem with the higher down payment and not having enough cash. 

Hi everyone! I’ve been listening to the podcast and reading the forum for months now, but wondering what others would do in my specific situation. I currently own a primary home near Denver, CO that I house hack. The payment on this is ~1800/mo and I receive 1100/mo. Purchased the property for 400k with 15% down and it is now worth ~600k. It has a 3.37% interest rate

I also have a successful short term rental (in the mountains of CO) that I cash flow about $1k-$2k per month depending on the season. This investment property was purchased for 250k with 20% down and is now worth ~330k. This property has a 3.5% rate that I bought down when I got the property because at the time I knew I was going to hold for a while.

All of this being said I have a good savings rate, but I want to use the equity I have to purchase my next deal instead of waiting to save up. I currently have 23k I can put down but I’m looking at deals that require about 45k down.

I'm wondering what everyone's opinion might be on how I can best utilize a HELOC and or cash out refinance to get cash to help me purchase a duplex to long term rent. As a side note, I can't get another short term rental in my area unfortunately due to new regulations and how the prices have risen. A cash out refinance seems to make the most sense but would be a bummer to lose the good interest rate.

What other perspective am I not seeing?

What would you do in this circumstance?