All Forum Posts by: Rian Ash

Hi BP Members,

I understand that Heloc on investment property as a topic has been discussed many times before. My intention is to share the research I have done so far and then get pointers on the question I have

Do you have credit unions which provide HELOC on investment properties in CA?

Yes- A lot do. Here are some

Penfed- 80LTV. You can easily qualify to be a member. But if you have more than 4 properties, they won't give you a loan. That disqualifies folks like me who have more than 4 properties.

Chevron Federal CU- Easy process, was able to get Heloc till 75LTV

TechCU- They have fixed equity loan. A bit painful with their processes but you can get till 75LTV.

Are there any which provide till 80LTV?

Redwood CU- the website says they do but when I specifically asked about till 80LTV, they said No and only offered 75 LTV

Sri Federal CU- They promise to give till 90LTV but have some crazy underwriting rules where they don't consider rental income :) so didn't work

America First- They don't give for properties in CA

Question- Has anyone been successful with Heloc till 80LTV for investment properties in CA with more than 4 properties?

Thanks!

Hi Bp Experts,

Here is the situation,

I have a property in Hayward, CA. The tenant was on Month to Month lease, but we explicitly have a clause added in the lease that the tenant needs to give 60 day notice if she intends to leave. The tenant just gave me 30 day notice. I understand that in CA, month to month leases have 30 day notice but since my lease explicitly mentioned 60 days, Will my lease cause prevail? 

Thanks!

Hi @Sienna Parker- Different Housing Authorities do it differently, for contra costa- They want MLS rental listing or links from Apartments.com (again depends on who you are dealing with). Alameda, to me is more open, I have shared craiglists in the past (don't accept it now) but MLS rental listings and apartments listing with work. You really need to do back and forth with them. Sometimes they surprise you by offering $200 above the market and sometimes getting even the market rent is hard. Gosection8 really doesn't help because you can't see the comps for your property. You can ask the housing authority for comps and in most cases they will provide it, but even if there are errors, I have found it hard to change their verdict.

Thanks @Anthony Dooley. I have to check how LLC will change anything. I thought having the properties in my name or in the LLC won't make a difference to the D/I or the number of properties financed via conventional loan limit.

Hey @Chris Mason- The properties were cash positive but I have taken a lot of cash-out with the refinances, this provided the necessary capital to buy more properties, which are owned by my wife. With the cashout the mortgage payment increased and the properties are no longer cash positive.

So with the primary residence (again done cash out multiple times, home equity used to the max to buy properties) and other investment properties my D/I is close to 43%.

Hi BP experts,

So here is the situation I find myself in. Between my wife and I, we have 11 properties. I have the primary residence which generates no income and for the properties which I own, I have done cash-out multiple times so overall my D/I is hitting the max.

Is there a way, I can move one of my properties to my wife (we are in CA and she has quit claim all properties before) without any tax implications, to open up my D/I

I was thinking of refinancing, adding her back, and then again refinancing and removing myself but given we collectively have more than 10 properties, this route will not work.

Any other ideas?

Thanks!

@Andrew Postell- Thanks a lot for your detailed reply!

Hi BP Experts,

Here is the scenario I am exploring and would like your advice. 

My wife currently can't qualify to buy a property since she doesn't have enough in reserves. I have a brokerage account wherein the balance is enough to take care of the reserves requirements if that account can be considered. 

If I add her as a joint account holder to that account, will that be enough for the balances to be considered in her D/I calculations. If yes, will that happen immediately or we need to wait for 2 months statements showing her on the account?

Thanks!

Hi BP Members,

I currently own 10 rentals in CA (average Marketplace of around 400K, give or take). Also carry an umbrella. I am mostly with Liberty right now but also have Safeco and ASI.I see that overall I am paying somewhere around 7K on insurance per year and was wondering if there is a way for me to have 1 insurance policy for all my rentals and if yes, what would be the advantages/disadvantages of that, and if that will help me save some money.

Thanks,

Rian

Hi BP Experts,

I have been thinking of expanding my portfolio once I reach the limit for financing 10 properties and cannot get conventional financing rates. (Currently between my wife and I, we have 11 properties and we should hit 20 over the next 2 years. I understand we can combine multiple properties in a portfolio loan or pay down some properties but I want to run at maximum leverage and keep cashing out as the properties increase in value, and don't want to lose that option)

Here is a scenario which I was thinking and was wondering how this can be executed-

Assume, there is a property available for 300K which I can rent for $2500/month. Taxes are around $250/month, Insurance- $50, and maintenance- $125. If I can find an investor who is willing to lend me this entire 300K at 7% interest only loan (costing $1750/month), then with this property I can net around $150/month ( 2500-1750-250-50-125, and assume 175/month for vacancy).

Instead of owning the title in my name, I can create a company( not sure what type), where I own 100% of the shares and that company can hold the title of the property- This ensures it is not counted against my 'number of properties' limit.

Now, 7% is too high compared to conventional mortgage rates. The question is how can I refinance and get conventional mortgage or any other kind of mortgage, where the lender sees that this is a cash positive property and lends to the 'company' without I personally be on the title or mortgage. 

I might have not used the right technical terms so please excuse in advance.

Thanks!

Thanks 

@Dave Skow