All Forum Posts by: Joseph Mallon

Hello Bigger Pockets Community,

My tenant moved out of my rental after 10 years of inhabiting the property. 

The fridge is failing and needs to be replaced. 

Question: Should I replace the refrigerator or let the new tenant purchase their own fridge?  Will not replacing the refrigerator limit my tenant pool?

Thank you!

Thank you both!

Hello, I am in the middle is a cash-out refinance 80/20 LTV for a jumbo loan. My lender is asking for a letter describing the reasons for the cash-out refinance and what I plan to do with the money.

My plan is to invest in additional investment property and invest in several ETF’s or low-cost mutual funds. Basically buy assets not liabilities. 

Will this be a sufficient explanation that will likely allow my loan to be approved? 

Thank you to all for your opinions. Any lender opinions would also be greatly appreciated!

Thank you,

Hello Bigger Pockets community,

I am in the process (paperwork with my lender) for doing a cash-out refinance of an investment property. I plan on taking cash-out of 75% LTV (Loan to Value). I've been quoted 2.875 for a 3-1 ARM, 3% for a 5-1 ARM, 3.125% for a 7-1 ARM, 3.25% for a 10-1 ARM. In addition, I've been quoted 3.875 % for a 30 year-fixed. About $2800 in closing costs for any of the loans. Doing the numbers, I save about 19,000 over 10 years by doing the 10 year ARM as opposed to a 30 year fixed cash-out refinance and I also pay more of the principle down with the lower interest rate. I save even more with a shorter term ARM on the cost of the money that I take out of the cash-out refi for other investment opportunities.

The more I think about this I am leaning toward a shorter term ARM then refinancing again at a later time. Am I missing something? I appreciate the communities thoughts?

Best,

Joe

 

@Andrew Postell The cons I could see are if the housing market doesn’t dip much after the COVID-19 pandemic. In addition, I suspect it’s going to be harder to get financing going forward with so much uncertainty in the economy. I will have debt to equity ratio for a lender, however, I’ll also have more cash for a down payment for an investment property. Thus, perhaps this is more of a positive than a negative.

I see this as an opportunity to get access to capital because I suspect the housing market will be more favorable from a buyers perspective in 6 months or so. Hence, my reasoning for accessing my equity. 

@Andrew Postell. I’m looking at a cash out refinance at a 75% loan to value. It’s current being utilized as a second home. It is a townhome. It’s worth about 500k, my new loan would be for 375k with 150k cash out for other investment property at a 3.25% 30 year fixed. I’m also considering. doing this for an investment property and my primary home. 

I’m refinancing some properties. My thought is to do a cash-out refinance at these low rates for additional investments. Pros/Cons?

Given the state of the economy, dropping stock market indexes, I am looking at refinancing my properties with cash-out refinances.  Does the Bigger Pockets community have any good resources (credit unions/mortgage brokers/banks) that they recommend? What rates are we seeing and with whom in the SF/Bay Area?

Thanks for your responses and discussion!

Hello BP Community,

I’m looking for recommendations for a cash-out refinance for a second home and investment property. Any recommendations for a mortgage broker/credit union/bank and your reason why?

Thank you!