All Forum Posts by: Patrick Jung

I was given issues trying to pull a HELOC on my SFR after rehab because of "mortgage seasoning"

I purchased this SFR with conventional 80% loan.

After rehab, I still was able to pull 36k HELOC with a 6.0% rate. (was aiming for 50k)

Lender said I haven't had loan more than 12 months and under valued the property. But said they were doing me a favor by not valuing

property at the original purchase price... which they should have due to not owning the property for more than a year..

anyone else have issues with what they call "mortgage seasoning"?

Going forward I will do a cashout refi instead of HELOC.

@Tom S. Sounds good. I'm wondering at a 7% rate, wouldn't it make sense to refi into a traditional conventional loan or a cashout refi to use cash to pay off the portfolio loan? Or are there prepayment penalties/fees?

What are your experiences with a portfolio lender/loan? Have you used for a distressed property? Cost of loan and ability to refi after renovations? Thanks

My grandma has a single family investment property that she doesn't want to deal with anymore. The tenants are about 3 months behind and she is just done with it. She wants to sell me the property, however she prefers to offer me seller financing because she wants a monthly income and does not want the lump sum payment her reasoning is because she doesnt want to be taxed.. She owns the house free and clear. We have a lawyer. I figured this is a great opportunity for me to possibly rehab and cash out refi for leverage to re invest? She is willing to sell to me for 100k maybe no interest? $1k / mo for 100 months. Property needs some work. 145k arv. Any advice? Quit claim deed, promissory note? Land contract?

@Scott Granberry Same here I opened a HELOC to start

@Timothy Howdeshell I would skip the mba. Get your realtors license instead. If real estate is what you want to be vested in, it would give you an upper hand by having dorect access to the mls. Be able to see properties when you want. And save alot in commissions. Sell some houses here and there to supplement your income.

@Dewayne Stiers Makes sense. Instead of having my cash flow sit in a savings acct it is better to pay down balance of HELOC. Would also be saving that interest payment too by having a lower heloc balance.

First property I bought was an undervalued house hack double. Purchased for 70k with an 80 conventional loan. ARV 160k I then took an 80k HELOC. Next I bought a single fam to move into using another conventional mortgage with 20% down coming from the HELOC. After all this I then discovered the BRRRR strategy. I thought that was kind of coincidental how I kind of followed the strategy without intention. Anyways, what I'm wondering is how do I repeat this process? Rehab the single family and do a cash out refi and pay back the 20% I borrowed from the other HELOC? Essentially it seems as though I would keep using a HELOC for down payments until I build up enough cash flow to buy fully in cash.

In my area, I have seen successful flips from 2FAMs converted to a huge SFH. Since the typical single family house in the area doesn't have the square footage, they made a killing. It was a foreclosed up & down with about 1200sq ft per unit and when converted about 2500 sq ft.

They bought for 40k and sold it after complete rehab for like $355k.

In my area, I have seen successful flips from 2FAMs converted to a huge SFH. Since the typical single family house in the area doesn't have the square footage, they made a killing. It was a foreclosed up & down with about 1200sq ft per unit and when converted about 2500 sq ft.

They bought for 40k and sold it after complete rehab for like $355k.