All Forum Posts by: Mark Bookhagen

Heloc makes way more sense. The cost of a refi is substantial. With a heloc, the bank will usually pay for the appraisal and the closing costs. Also, are you sure you are paying PMI? I doubt you are if you put 20 percent down. PMI only lasts until you have 78 percent ltv based on purchase price (not appraised value) or 5 years in, whichever happens later.

Also, where is the residual $170k coming from? Can you provide more details?

The debt will count toward them unless: 1. They have an assumable mortgage (not likely at all). 2. You assume their mortgage. You will need to meet all the lien holder's requirements.

Is the water included or is the tenant paying it?

Until you have 2 years of landlord experience (tax return documented), your DTI will need to be within the guidelines without consideration given to the potential rent (as income). If you have a higher salary, your DTI ratio may still be within the guidelines after the new mortgage is added. If not, think about bringing in a partner for the first couple years to improve your DTI ratio.

I won't rent to people with cats (or dogs). They can destroy your property much more than a security deposit or pet deposit can cover. I know it's too late this time. It cost me $15k to rehab a cat unit. Never again. :)

No need to do anything. Get your belongings and let the bank take it.

The bank you are working with may be holding the note (not selling it off), which is why they may be limiting you. Definitely find a new bank.

Look into PPAs (Power Purchase Agreements). This is eliminate the need for an initial cash layout. My 9-5 is in the the energy industry. I'm assuming your tenants pay their own utilities and the excess you are referring to is over and above the common area usage. You will also need to make sure your utility allows for "bi-directional meters." Most do nowadays. The company doing the PPA will be able to help you determine feasibility in your area.

I do 50% like @Jerry W.