All Forum Posts by: Josh Norell

 I believe you could just estimate high. If rehab costs come in lower than expected, when the bank requests the payoff amount for the refi, you could provide them a lower number.

@Andrew Postell you mentioned in another post about having a 2nd lien position noted on the settlement statement at closing. Is this necessary or recommended for a 1st lien position also?

If the loan is not mentioned on the settlement statement, I would think the bank may raise an eyebrow when you go to refi.

Your maximum you will be able to get out on a cash-out refi is 75% on a non-owner occupant property.

Tristan, were you successful with your Rate/Term refi using this strategy?

I'm not clear on how who owns the property, and who has the lien in your situation. Are you saying that the LLC is on title, and you personally put a lien on the property? This is what it sounds like from your post. But why would you do this? This post is regarding getting Fannie/Freddie financing, and it's my understanding that freddie/fannie will not issue loans in an LLC name.

@Matthew Rensel check with first bank. They were doing HELOCs on investment properties a month ago.

You could take your loan estimate to other lenders, and ask "can you beat this?" Some can and will.

@shaun marks keep shopping lenders. Some will do it with the delayed financing exception, up to 75% LTV. Many won't do it, or won't go up to 75%, but some will. I just closed on one about a month ago through better mortgage. And through them, if you have an Amex card, they'll also pay for the appraisal, and give you a $2500 statement credit.

Good luck finding decent rates/points today on an investment refi though.

I wouldn't view a HELOC like a credit card. Rates aren't nearly that onerous. Though with a HELOC, you risk your credit line getting frozen. Many credit lines were frozen in the 2008 downturn. It can be hard to find a bank that will issue HELOCs on investment properties.

Why not try to lock in a long term fixed mortgage while rates are low?

That seems to be exactly what they do. I've inquired about a few properties I've seen on craigslist, and their response is always "lets have a chat and get you on our buyers list."

Welcome Abigail, you could have a home inspector look it over and give you a report on deficient items. This likely would be a good idea for you anyway. These usually run $300-400. They should catch most of the issues a tenant is likely to complain about.

If you're not wanting to pay someone, you should be able to identify most issues yourself by testing all the moving parts of a house. Does the HVAC operate and get hot/cold? Do faucets work with sufficient pressure without leaking? Doors open and close well and latch? Windows operate and lock? All the outlets work? Light switches work? Etc...