All Forum Posts by: Paul M.

Thanks for the tips. My ARM is an amortizing loan. So far I haven't done an application, just seen a question on the application. I think I'd still qualify even if a lender assumes the maximum interest rate scenario (7.75%) were to occur in 8 years.

I don't purchase single families because (in my area) you are usually competing with owner occupants who are influencing the price so that it is higher than what the rents would support. Unless the single family is near a busy street, an ugly abandoned commercial building or some other negative factor like that where there less owner occupant competition, but it would still rent easily to good renters.

Totally agree, but I'm starting this thread because I want to hear the specialized experience of if anyone has experienced a rejection of a HELOC application because the first mortgage was an ARM product.

I definitely appreciate the value of locking these awesome low rates and in general that is what I've done with my properties. I have reasons for the differing strategy with this property, at least for now. Those are beyond the scope of this forum.

I recently saw a HELOC application that asked if my first mortgage was fixed. Will HELOC lenders deny the application if you have an ARM?

I would have done it. Bathrooms in basement don't have to cost much. If it is a rental, it is nice because if some work ever has to be done on the primary bathroom, it can serve as a backup bathroom.

OK, just exploring my options. I still have equity in my primary residence, but not enough to do the deal I want to do. Hopefully I can find a local lender that will allow a down payment of less than 25% in exchange for putting a lien on the 2 investment properties.

Failing that I'll have to wait until my monthly savings generate enough cash.

I have 2 properties, I estimate the mortgages are at 70% LTV. I haven't seen any banks doing 2nd mortgages for greater than 70% LTV. Is a private/hard money lender an option to get a 2nd mortgage that would bring me to 80%-90% LTV?

I want to figure out options for generating cash to use as down payment for next acquisition. I know interest rate would be high but it would be for small $ amount and I could pay it off in a few years. I have healthy cash flow and perfect credit.

I'm always surprised that people will read many general real estate investing/legal/finance books, but no books on construction/maintenance/renovation skills. And also little of that is covered in those general books. In the real world, that knowledge can be at least 50% of the success of a project.

So at each step of the way, am I connecting new with old temporarily unless I find a way to fish things all the way down say if it is balloon construction? It very well may be balloon construction, since it is over 100 years old.

Start at the top so the liquids don't pour out because of gravity, right? Are there other reasons?