Hi,
I am am looking for option ARM loans. My credit score is 650 and I have no late/missed payements. I have 6 investments loans and would like to refinance one to take some cash out.
The house was bought 2 years ago at $237000 it is now worth $34500.
I don’t want to sell it but it is hard to rent it because my payments are:$1656 and I am requesting a rent of $1770 (that’s the max I can get in this area ).
Should i:
just sell? (The area is still appreciating)
refinance and take the cash out? (I need the cash to buy other properties) and lower the monthly payements?
I don’t really know what would be my best startegy in this situation. What interest rates should i expect (i know that more info is needed to determine this, but just a range will give me an idea as to waht to expect).
A couple of things. Don’t take vacancies over getting a lower rent amount; if you have to go negative a little while you’re riding the appreciation then so be it if you can manage it. Yes, you should definitely reposition some of that equity to acquire some properties that are able to cash flow and help subsidize that monthly payment. If you’re really concerned with cash and are in a decent appreciation scenario, you might even want to conisder an option ARM that will allow you to defer the interest or interest-only.
Sorry, I was busy with someone when I was replying to my first post. I see that, you want to buy another properties with proceeds from your current property.
Option ARM is very attractive but dangerous if you don’t time it correctly and have solid exit strategy. Properties that you are looking to buy, would the owner consider no money down providing that, you use property as a collateral? If seller needs money, tell them to get a loan against their property providing, they have equity. This worked for me few times but never pursued it since, sellers are willing to lower the price with all cash.
I don’t know if selling is the answer unless you want to get out of it. Fed will annouce pause or 1/4 percent hike and stop next week and this will make the market fly again. CNBC showing that, 10 year notes are down and housing index is starting to pick up again. It’s anybody’s guess at this point.
Your comment to selling: Most of the millionaires have started by real estate investing; are you a millionaire?
Get another Arm.Homes values seems to be soft in certain area. House usually sit on the market longer.Now from the Federal Reserve website and Wall street you will have an idea where the market will go. Good news bad for rates. Bad news good for rates. Inflation is key. Problably 1 more rate hike. Then they have to ease off. Like you turn hot water to take a shower. too much hot, you have to ease off. If we go into a recession… …rates has to drop to jump start growth and people confidence… gross national product…
Remember the cycle.
