Well hello all! Its been awhile since I posted, but I’ve been a little busy with all the investing and BEING A NEW DADDY! Anyway, glad to be back. I firmly believe in the quote, “There is not one of us smarter than all of us put together”, so I am going to see what you guys think about this decision I have to make.
Here goes:
I have 2 homes here in Phoenix that will appraise at about 400K each.
I owe about 285 on each of them.
Ok, so the question is how do I tap into the 115K in each without selling the homes??? I want to try to hold on these homes for another 30-45 years, but if I refi them at 400K the payments will be more than I can rent them out for.
Here is what I am thinking:
I will get an interest on 1st @ 80% which should give me a pretty low payment.
Then I will get HELOCS on the back of both of those for the rest.
What other suggestions can you guys come up with!!! This should be fun!
sounds like you’re trying to have your cake and eat it too.
you can only pull out enough money for the rents to support
the payment. more than that and you’re asking for trouble.
if you’re planning on holding for 30 yrs, you want to pay it
down. if you need to pull the money out you should be selling
it NOW while the goings good.
hey mark, I know hwere you’re at as I took 6 month off from REI as we had our first child this summer. Now back workin’ some deals.
What are you trying to do with this cash out money??? Going the HELOC is a pretty expensive way to go about it; especially since your LTV is only about 0.7. My experience with looking at HELOC on ivestment is you will pay a real premium to go above 0.8 LTV so you will not get much cash out (it almost impossible to leverage all the equity in a property so real available equity might be only 35-75k).
Furthermore, like previously stated, if you plan to hold these properties, then further leveraging them is going in the wrong direction.
I know you said you want to hold them, but why? I’m sure they are nice, but if they are just purchased for investment then you should avoid attactment.
This is really a classic example for a 1031 exchange.
Now back workin’ some deals.