I am looking to see the best approach. I have a SFR, owe $25K on land contract and I have 12unit apts 3 buildings with 4 apts each bldg. Bought them within a month of each other in Jan 06. Also own 10unit MHP free and clear but all park owned units so most banks won’t touch.
My questions and advice I need are as follows:
Last fall after rehab and then refi on duplex my fico was 723. Now doing same thing and fico taking a big hit down to 660. Which is the best approach for a loan and a HELOC.
I owe $25K on SFR which is value at $75K
The 12unit apts I owe $140K and appraised for $230K as is with 4 more units to rehab. When I finish the 4 apts it will add over $100-$130K to value. Should i finance the SFR to pay down debt to get fico back up and then do HELOC on apts. or what I am looking for creating best rate scenario and payments be which I should do first to pay off debt and wait for the fico to go back up
Any advice would be appreciated. Was thinking about approaching a bank with plan to buy more and see what they would do if I put them all on the table for a good LOC.
What do you guys suggest.
owe $25K SFR- value $75K
owe $140K 12 unit apts - value $230K (appraised 11/05 as is with 4 more units worth $130K) Need another $20K to complete.
10unit MHP free and clear
FICO 660 too much debt and too many inquiries for reason.
Was 723 before purchase and before using credit cards and unsecured lines for repairs and rehab.
Hi Roger,
I would refi the units, because you’ll get a better rate and could pull out more money on those. The reason you would get a better rate is the amount of money you are borrowing. Most L/O will charge you a higher rate on lesser money, because they need to make money on that size of a loan. With the units, you could get the money out to finish the rehab work and pay off debt. After rehab hab is complete refi on a simple rate and term get a great rate after fico goes up and you can get a small heloc on the SFR with a much better rate.
Good Luck
Andy
If you are going to rehab, there are a lender that will not require to qualify if you are in the rehab business.OPM
Just cashout refi the 1st on the 75k unit to pull the needed cash for the rehab work. No brainer…