All Forum Posts by: Mark P.

@Alex M.@Cameron Tope@Charlie Fitzgerald

So here's my situation...

My original FHA loan originated in Aug 2011 @ 3.75% - my total payment with P&I, PMI ($172/month), Taxes, and Insurance is $1,365/month. The house was appraised initially at $215k and right now I owe $182k or 85% LTV. I currently rent at $1,500/month which leaves me no room to accrue for any expenses unless I refinance, but it's not worth it.

My recent appraisal has me thinking about selling, but the neighborhood (Pennsport) is appreciating and I would like to ride it out, but my crystal ball is unclear at the moment. My current loan states I need to pay PMI for 60 months or until Aug 2016, but I would still have to pay down the loan to 78% LTV of the $215k appraisal or $14k again.

Any advice on how I could get around it or does it make sense to sell soon?  (To avoid any larger issues which could occur)

Thanks for the advice.  

Thanks but what's your reasoning? I'm still paying $2100/year in PMI and I feel like I'm throwing money away.

That's because I don't live there.  I have a 805 credit score, but since I live in CA, but the property is in PA I am penalized.  Am I missing something here?

So I am at a crossroads right now and would like some feedback. Currently, I rent a place out with a FHA mortgage t 3.75% owing $182k on the loan for a place I bought in 2011 for $205k. I pay $2100/year in PMI and recently got the house appraised at $230k, which brings my LTV to 80%. I live in Southern California and would like to buy something here, but my rental is appreciating and I'm not sure I want to sell just yet.

I was recently quoted 4.125% to refinance, but I would need to come out of pocket $10k plus closing costs ($4k). 

Does this make sense to refinance to give myself the ability to buy FHA in CA with little money down, then sell when the time is right to pay down the principal? or do I keep going?

 Ilya,

My property is located in Pennsport in South Philly.  That area is on a steady increase in appreciation and I believe will continue to rise over time. 

 Josh,

Thanks for your response.  I currently owe $185k on the loan, but the house is appreciating rapidly and the current break even will turn into cash flow in January 2016 with the reassessment of the escrow account.  Houses in this neighborhood go rather quickly to rent or buy and I believe in a few years the property could sell for much more.  I am not really set on the short term, since it's not costing me much to maintain.

@Joe Homs

Thanks for your message Joe.  I would like to get into flipping homes, but I feel like my cash wouldn't be enough for OC.  It seems like any "Cheaper"  property get snagged pretty quickly  with all cash offers.  Have you had any good luck with lower end homes?  I would need to start somewhere, but I feel like the markets in Dallas, San Antonio, Nashville are more suited for me beginning as an investor.

So I purchased a home in Philadelphia, PA in August 2011 for $199k with a FHA loan at 3.75%. The mortgage payment was $1265 initially and now since it's my rental property, I am renting it for $1400/month, but have $0 cash flow due to a property tax increase in 2014, so for 2015, my escrow payment is catching up for 2014. Once 2015 is over, I should make $50-$100/month, but the neighborhood is appreciating rapidly.

All of the vacant lots are being purchased and rehabbed and there are new condos selling for $350-$500k. I think my property is valued at $210-$215k at the moment, so I am trying to ride the appreciation out, but am paying PMI at $200/month. Should I hold the property since I know the appreciation should help over time?

I appreciate any feedback.

Thanks,

Mark