All Forum Posts by: Jeremy Z.

 Maybe their silence is due to embarrassment over all the mistakes the underwriters and loan officers are making (according to you).

 Or you know, you could just stop fat-fingering the sales price when you punch in the numbers.

Again, I kind of see where you are coming from, but your approach could definitely use some work!

 Looks like my comment went right over your head.

@Steve McRory -  "And because they already know the depth of the backwards and antiquated mindset they see"

So when you use oddball numbers it's cool, but when buyers/sellers do it it's backwards and antiquated???

 "I'm the KING of using oddball numbers as a psychological negotiation tactic, but shame on you guys for doing it!"

I can see where you are coming from and you could have come here and politely requested that investors help make the process go smoother for everyone. Instead you came here and acted condescending, all the while looking like your process needs improvement. If I was doing business with you I would either move it elsewhere or send you oddball sales prices just to get under your skin!

Let the numbers dictate. How long will it take to recoup your half? Check out the competition. Do most of them have upgraded counters? If so, I might be inclined to do it.

If you decide to move forward, either give them a few options or at least have veto power! In other words, make sure the counters that go in will be desirable to a wide range of prospective tenants.

You are conflating Mortgage Insurance Premium (MIP) on FHA loans with Private Mortgage Insurance (PMI) on conventional loans.

Investopedia - Difference Between PMI and MIP

I believe @Steven D.'s statement is correct, that all PMI is based on the original principal amount borrowed (although I suppose there could be exceptions). But ultimately, it's important for borrowers to understand which type they have and what the rules are for their specific loan/insurance terms.

 The lease numbers you quoted earlier are way off if you are putting 50k miles/year on it. Your comparison is apples to oranges.

 That makes sense. Thanks for the info.

I need to add a caveat to my previous suggestion that it may be better to use your HELOC to pay down principle and eliminate PMI, rather than paying for an appraisal. I was thinking in terms of a mortgage on a primary residence, where this clause from the Homeowners Protection Act would apply:

There is no provision in the automatic-termination section of the act, as there is in the borrower requested PMI cancellation section, that protects the lender against declines in property value or subordinate liens. The automatic-termination provisions make no reference to good payment history (as prescribed in the borrower-requested provisions) but state only that the borrower must be current on mortgage payments.

You should probably verify that the same rules regarding subordinate liens apply to investment properties before using your HELOC. If your HELOC is secured by a separate property than this is probably a moot point.

Anyway, I didn't want to lead you astray there.

If I was in your position I definitely wouldn't pay for a full appraisal. Everything I am reading indicates that 78% LTV is a federal requirement. Even if there is an exception to that requirement in your case, it probably makes more sense to just wait until you pay off the next big chunk with your HELOC (as long as that gets you to 70%). A full appraisal in my market runs $700 these days. Even at $400 the numbers probably wouldn't make sense, especially since an appraisal could still come in low. Now if the lender will accept a BPO (broker price opinion) or some other inexpensive valuation, that is a different story. But I think they typically require a full appraisal.

Anyway, just thought I would offer a little unsolicited advice :) Cheers!