All Forum Posts by: Shaun Weekes

I am trying to figure out comps in my area but there are no recently sold houses. The ones most recent have been sold in 2018. So how does one go about finding comps without the latest data? Thanks in advance!

Josh

Maybe @Mike Anderson can help with this question.

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Originally posted by @Will Gile:

With the CARES act I can take out my 401k with no penalty. I have two rentals already woth &100k equity. My wife and I are teachers and currently remt rather than own a primary. I have $100k in my 401k . Should I just take it out and add to our portfolio of property or perhaps buy a primary?

Do you have a 401K or a 403b or 457b? If you're a teacher in CA, then you pay into a 403b or 457b and I'm not sure if that falls under the care act stipulations. You need to find out what you have and then consult your CPA to verify that no penalty will be incurred on a 403 B or 457 B

Depending on the value of the home you might not need to put down that much money unless you have specific target amount, you're looking to pay on a monthly basis. Also, if you have equity in the investment homes you might want to consider taking cash out from one of both to use as a down payment. You for sure have options which is good.

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Originally posted by @Edward Eloma:

@Shaun Weekes yes I'm definitely going to go through with it, is there a grace period of when I can purchase my next 3 family after I refinance it and use a new FHA?
And also I’m unemployed I’m going to try and talk to a loan officer and see if I can lock a rate now and refinance once I’m back to work. Thank you for advice Shaun!

Since you're unemployed I would wait until you go back to work before you move forward. Let's say you do a lock for 60 days and you're still not back to work. You would then need to re lock or extend the lock and that costs money.

Also, if you're unemployed that would need to be stating on the mortgage application and will most likely disqualify you unless there's other income besides rents. If you qualify with just rents that's an option as well so have your LO look over that possibility. Have him/her monitor rates to make sure there's not any large jumps and just go from there.

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Originally posted by @Manuel Diaz:

Thank you for the feedback everyone. Is there a specific list of agents that focus on investment properties in the DC area? I would definitely like someone that has some experience or specialty in estimating rehab costs and red flags since this would be my first property.

@Russell Brazil might know someone in that area or you can write a post asking for recommendations on Investor type Realtors.

1 Vote

Originally posted by @Edward Eloma:

@Shaun Weekes okay so I currently owe $204,000

The appraisal will come In at $290,000-300,000. I do not want to pull out any money. I saw rates for refinance at 3.25% but I am currently at 3.875%. I pay on a 30 year currently with 3 years in about for $1,751. Property taxes is $323 a month, and insurance is $208. And PMI of $134 for 11 more years since I put down 10% when I first bought the house...My rents would total $2,625.

If your loan amount was 208.5k at 3.99% you're looking at a payment of $1,525.21 including your taxes and insurance. This is saving you about $225.79 a month. If you multiply that by 24 months or 2 years, you're saving $5,418.96 so you'll recoup your money in about 20 months which is good. On top of that your rents are going up and you're using a 3.5% down payment to acquire another 3 units.

You have 3 years of experience so you can use new rents towards your income and as long as your C.I.A. (Credit, Income and Assets) is solid I would move forward with getting the deals done.

Just my 2 cents and I hope this helps.

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@Edward Eloma

I think it makes sense. You will also get rid of MI and open up another unit to rent. Coupled with the fact the rates are still crazy low.

What is your current rate?

How much can you rent out your unit for?

What are the rents on the other 2 units?

How much do you owe and what's the value of the property?

With these answers we can figure out if this is a good move or great move or bad move.

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@Edward Eloma

If you have enough equity in your current triplex refinance it as an investment property. Then you can buy another triplex with as little as 3.5% down FHA.

1 Vote

@Manuel Diaz

It sounds like you need to work with a Realtor. They will have access to the MLS. Give them your criteria and let them bring properties to you instead of you looking for the properties.

Also, make sure you have a solid pre approval from a loan officer or broker that understands investment type loans.

I hope this helps and good luck.

1 Vote

Originally posted by @Thomas Martin:

I think I've already made one mistake, but I want to keep from making another.

I have a SFH that has been rented over last 12yrs. REfinanced in 2013 at 5.375% and have some equity that I want to access.

Just had a tenant move out and shouldn't have any trouble getting it rented out with about $300-350/month cash flow. I moved, but think forward with a refinance when everyone else did about 3weeks ago and the rate and terms were changed to include points. In order to get out 60K, they were asking me to pay 2.2pts. I could get out about 24K at 0pts. They are only moving up to 60% LTV.

I was planning to use the money to add an additional 400sq feet of kitchen and master bedroom add a shower to the master bath. It should increase the rent by about $200/month and increase the resale by about 80K.

I paid for the appraisal, but can back out of the refi now and only lose the $550 appraisal. I think I should just pay for the rehab out of pocket now (60K) and then refinace and get a bit more out at that point(60-100K) to invest into a new property.

Thoughts?

thanks, Tom

I have paid the appraisal, but

What did the appraisal come back at and what type of property is it?

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All Forum Posts by: Shaun Weekes

Shaun Weekes has started 33 posts and replied 1673 times.

Post: BRRRR on a Property With No Mortgage

Post: Analyzing Comps (Lack thereof recently sold)

Post: Should I take out my 401k?

Post: USING FHA AGAIN? HAVING 2 FHA LOANS?

Post: Best way to monitor multi-family homes in DC area

Post: USING FHA AGAIN? HAVING 2 FHA LOANS?

Post: USING FHA AGAIN? HAVING 2 FHA LOANS?

Post: USING FHA AGAIN? HAVING 2 FHA LOANS?

Post: Best way to monitor multi-family homes in DC area

Post: Refinancing to maximize equity. Now or later?