All Forum Posts by: Rian Ash

Thanks @Paul Defngin,

Hi,

I am currently in contract to buy a condo/townhouse as an investment property in Alameda county in CA. The contract is for 390K, my credit score is above 760 and I want to put 20% down (25% if I really have to buy dont prefer it). With my previous lender we were about to close but realized that out of the 14 apartments in the complex, one person owns 5 because of that the loan was rejected.

Are there lenders out there which will finance a property in this case? I am looking for maximum lenders credit (close to 2% of the loan) and rates which are not very high compared to the conventional mortgage.

Thanks

Chris M. Hmm I am getting different responses on that and I searched the forums and I think I am still not clear. It seems strange that even if you are not on the mortgage, the property is counted against you. It would be fairly easy to get around that by changing the deed and get my wife off the title. It is a pain but doable. And there will be some legal way to give my stake to her (when I am the only one on the title) in case something happens to me.

@Wayne Brooks@Chris Mason

The refinances are expensive but most of the fixed cost is independent of the cost of the property. With my properties usually a .125% percent increase covers all the closing cost and with the cheaper rates I end up saving money. I havent seen a major imapct on my credit score with this.

With the cash out, I can get another property- that takes my property count to 4. And then can start the same cycle with my wife and own 8 between us. All the investment properties cost around 375-400K each so I am not going to reach the limit anytime soon, and when I reach them - I have to check if I should go to Fraddie(still need to look at it) or go beyond 4 on Fannie but leave the option of anytime cashout refinance. 

Thankyou for your opinion! I really appreciate that

@David Krulac, @Upen Patel, @Wayne Brooks, @J Beard, @Ralph R. - thankyou for your responses.

@David Krulac- I will check your blog later today and get back.

@Ralph R. - I am not sure how you are getting conventional financing with only 20% of four properties, For investment properties till 4 total financed properties- You need 25%, and after that 30%. Would love to know how you are doing differently.

I understand that I can finance upto 10 properties, but the rules changes after I have mortgage on 4 properties - Check https://www.fanniemae.com/content/guide/selling/b2...

Till 4 properties, I can take 75% cash out on refinance- Anytime after owning it for 6 month. If I have more than 4, I cannot take cash out on refinance after the initial 6 months. That doesnt help if the property has appreciated. In that case your equity is stuck.  I cannot use that equity as down payment to buy more, unless I don't use conventional financing- Which I don't want to consider if between my wife and I, there are ways to get 8. 

I will do more research and reply later today.

thanks J Beard, I will check it out. Creating LLC is not a viable option for me. My investment makes sense if I can take the maximum loan amount with the rates conventional mortgages provide.

So is there is any way to own 8 properties using the conventional lending where I put only 25% down, get todays low rates and can cash out refinance any time(after 6 months of ownership) between my wife and me?

Hi BPers,

I currently 3 properties- 1 Primary and 2 rentals. They are conventionally financed with both myself and my wife on the mortgage and the title. I am planning to refinance all of the properties and while doing that I want to be the sole person on the title and the mortgage. The reason of my doing this is to get conventional financing for 8 properties- 4 owned by me and 4 by my wife. I believe this is possible (please let me know if it isnt - I reside in California in case that matters).

The question is how do I go about doing it

Should my wife create a quit claim deed for all the 3 properties during the refinance? And is that enough?

After we have done the refinance and I have the title and the mortgage on my name, is there a way I can create a deed and transfer 50% of my stake in the property to her?

Clarification- The reason I want to refinance is that I can get to a lower rate. With doing cash out, I can refinance for 4.25 with zero closing. So my idea is do 4.5 today, get the extra and then immediately go to 4.25. 

I currently have an investment property with 4% 30 yr fixed. With 75% LTV, I can get around 65K cash out from it. When i look to refinance, I see that for cash out the rates are slightly higher. At 4.5% I get huge credit which covers all the costs and gives me enough to pay the HOA fees for few months.

Question- After getting the huge credit, can I refinance immediately? If yes, going a step ahead, Can i start the new refinance application even before the current one has closed. I want to do this to give me a better chance to lock the low rates?

Thanks for your response!!

Thanks Chris, I didn't know there was subjectivity in this :)- good to know. In your experience the first 4 properties can have different LTV and only fifth onward I need to be at 70% or before getting 5th, LTV for all the previous 4 should be at 70%