All Forum Posts by: Mathew Gunkel

@Brent CoombsOuch? I never said I don't have equity in my primary.  I have significantly more in the rental.  It makes sense to weigh both of my options and compare rates, fees, cash accessible, etc. right?

@Lorenzo Perezthank you for the rate info. I was wondering what the ranges were there.

@Brent CoombsI agree on the concern of over leveraging and crazy interest rates, but the timeframe I plan to borrow is extremely short. I intend to put my personal residence on the market, and the HELOC would allow me to make some carefully selected repairs/improvements to get a quick sale at a favorable price. At the sale we'd pay back the HELOC. We're talking about a few months.

Hey All,

I'm trying to make a move, and I'd love some great info if anyone can help.

What is the highest LTV you ladies and gents have seen that a lender is willing to extend on a non-primary residence rental property HELOC?

Has anyone ever gotten > 80% LTV? If so, would you let me know who the lender was.

Thanks so much for any help!!

-Mat

Originally posted by @Sunny Burns:

I think we are exempt from the Federal Antidiscrimination Laws; according to NOLO, Owner Occupied Rentals with Four or Fewer Rental Units are not covered under Federal Fair Housing Laws. That being said we are not looking to discriminate against anyone.

No one that has applied has fully met our requirements of an average credit score of 640 or higher, and Gross Income of 2.5x rent(I know 3x is recommended).

The Single Divorcee did end up applying and doing the credit report/ background check about an hour ago. His background check is clear, but His credit score is in the Mid 400's...$368k of debt. He said he had a house built, some years ago, but his Wife took it. He also just changed jobs though, and didn't provide a reference for his previous employer.

We called the families last two landlords and all had very positive things to say without any negative comments. I think we will go with the family as there is too much going on with the other guy, even if he is willing to pay more, it doesn't seem worth the risk.

Disregard my advice in my previous post.  I didnt realize you guys owner occupied.

@Sunny Burns I agree with previous members who point out the potential for appearing to be discriminating against protected classes.  Also, failing to accept the first applicant who meets your requirements could be perceived as you using discriminatory factors such as family status to make your decision.  

I am not at all saying you are doing so nor do I believe you are, but be careful and think of this public forum as something anyone could see and choose your words accordingly.

With all that said.  You really need a background check and credit report from Mr. $150,000/year to make a real decision.  $150/month extra is peanuts if he has a criminal history of felony assault/selling drugs, or he has multiple recent evictions.  If he can't submit a simple credit/background check, he's either going to be an uncooperative problem tenant or he's hiding something.

Let us know how it goes and Good Luck!!!

@Alex Franks 30 hours is bonkers!!  If you're investing in a new area, that makes sense though.

I am liking how you all hit meetings whenever you travel.  I need to start doing that

@Account Closed...1300 miles!! Good lord that is crazy haha!!! 

Thanks guys I feel way better about my pathetic 1hr trip now lol!

Hey!! I work a crazy schedule with a handful of 3:30p-11:30p shifts conveniently placed on days when a lot of the local REIA meetings are held. This leaves me with maybe 1 meeting a month I can hit if nothing important pops up. Today I decided I will head toward the shore once a month to hit a group that really interests me. It's an hour each way...ugh, but I'm looking forward to it. This had me wondering about what lengths some of my fellow BPers go to make a meeting. So...what's furthest you've travelled to make a REIA meeting?? -Mat

I agree with @Jacob Sampson to first issue a notice to pay or quit (free), and if that fails try the $200-$400 cash for keys.  If neither works, you should really hire an attorney.  I'm not sure about MD, but in NJ there are countless ways a "professional" squatter can have you liable for 2x damages through "hardships" or "losses" caused by seemingly harmless missteps on your part.

Let us know how it turns out, and Good luck!

@Raiyan Hadi,

You're welcome! That sounds like a great plan!!