All Forum Posts by: Michael Dunn

For the year 2017 , 

can someone please tell me what the current Seasoning Period is  on Investment Properties , before you are able to do a Cash-Out Refinance ?

Thank you so much 

Good Afternoon,

I need some help in Understanding my options regarding a HELOC that I just got approved for , and am set to sign the Papers for this coming Monday

The HELOC is for 20 years and is a $20,000 Loan ( the First 10 years is Interest Only and Last 10 years is when the Payments to payoff the Principal kicks in )

I want to ask and see if my Future use with this HELOC makes sense and or can be done .............

I want to use this Line of Credit for the DownPayment  (  20%  -  25%  ) /Rehab/Closing Costs/Pre-Paids for Each new Rental Property that I purchase and then Refinance into an Investment Property 

I Won't need the Full $20,000 from the HELOC each time to use for the DownPayment/Rehab/Closing Costs/Pre-Paids for Each Rental, as i plan to use some of the Cash that I get from each Rental, when I refinance them

My main Question is:

If I use this HELOC ONCE per year for the Costs it will take for Each Rental ( DownPayment ( 20% - 25% ) /Rehab/Closing Costs/Pre-Paids ) ..... I'm assuming I'll need in Cash on average ....... $33,000 per Rental ( This assumes an Average Purchase Price for the Properties of $75,000 )

Will I be able to Re-use this same $20,000 from the HELOC over and over again for each New Rental , so long as when I go to Refinance each Property , I make sure that I Pay-Off the amount borrowed from using the HELOC ( along with the Interest Payments ) .

I just want to make sure I understand the dynamics and the way in which ELOCs work, as I'm signing on one next Monday and am hoping I can use it for each New Rental ...... so long as I " Pay-Off" the amount of the $20,000 from the HELOC that I use/borrow on each Rental

Thanks so much for the help and insight 

Thank you for your reply Mark 

Yeah, before I started the HELOC process, the Loan Officer told me that it usually takes 1 month to get the Actual Funds, so going on 3 weeks seems to be on " Schedule "

I have yet to get the House Appraised  ( Getting this done, this coming Thursday  ) , so I am wondering if this is why the Loan Officer has Not told me that I am Approved Yet ? 

Likely waiting to see what my house Appraises for , before gives me a definite Answer do you think ?

Thanks so much for your help 

Linda Weygant ,

Thank You so much for your reply  ....... Great information you posted and shared

A few Quick things please:

1. Assuming a Gross Yearly Income of  $30,000 

What then could someone expect to Pay as the TOTAL Dollar amount in Taxes for the Year on that amount of $30,000 ? 

Would it be right around ....... $3,825  that would be owed in Taxes ?

And what about the Taxes we have to pay for the State / City we live in ?  How do you Calculate this Number ?  Is the Tax Rate based on a State/City basis or is it Nationally the same Tax Rate ?

Thanks so much again for all of your help, Can't Thank you enough - Michael 

Good Evening ,

Just had a question please, regarding the Average LENGTH of TIME to hear back about HELOC Approval ??

It has Been 2 weeks since I talked to a Lender at a local Bank , and checked in with him yesterday , and he told me that the HELOC has not yet been decided upon

Just curious if this is the average weight time, to hear a yes or no , on whether you're approved for a HELOC ?

Thanks so much 

Since we're here again for another Tax Season, 

I'm just curious , as to know 100%  what Tax Bracket someone falls in as a whole (  State, City and Federal ) ....all Combined 

Is it  15% of your Income you should hold out ?

20 % ?

25% ?

This is just a question that I have never gotten an " Exact " answer to , but I would like to know to the  " T "  , via what Percent of my Income to hold out for Taxes 

Thank you for the help 

Kathy Henley, 

Thanks so much for your reply 

Good Morning 

Before I call my Lender back this coming Monday, i want to make sure that I'm not wasting there time and mine 

A Breakdown of the Scenario:

Primary residence has $40,000 in Equity 

to get a $20,000 HELOC , I was told from the Lender that the Max DTI is 43%

Given Last 2 years of Taxes , those Two years  ( 2014 and 2015 ) comes out to $40,00  ( so it " shows " $20,000 earned as the average per year for 2014 and 2015 ) ....... So about  $1,650 a Month 

Multiply $1,650 x .40% DTI = $715

Subtract from this a $480 a month Mortgage payment ( PITI ) + $85 in Minimum Monthly Credit Card Payments ( one if $40 minimum a month and the other one is $45 minimum monthly payment )

TOTAL =  $565  ( Monthly Debts 

The DTI Shows a MAX TOTAL you can Afford of $715 a month

$715 - $565 =  $150 

So, the Minimum Payment on the 20 Year HELOC ( at a 7.15% Interest Rate , and Paying just Interest Only for the First 10 years = a Monthly Payment of right around $120

$150  -  $120  =  $30 Left Over 

So this Shows that I should be able to get the HELOC , as I can Afford to make the Minimum Monthly Payment on the HELOC in the amount of $115 a month

I also Have a Good Enough Credit Score to have Qualified as well..... from what the Lender told me 

Is there anything I'm missing , that might stop me from qualifying from Getting this HELOC ?

Thanks Very much for any and all help 

Thank you Mark 

I was thinking that was the case regarding Rent you pay for an Apartment .... so just wanted to double check 

Good Morning ,

Just have a quick question please , and that is :

Does the Rent you pay from Renting an Apartment count as an " Expense " , for when a Lender runs your DTI ?

Thanks much