refinancing single family rental – extracting $31k cash to put into 2 new properties in similar area
Todays the day!!! I’m psyched since I had to wait a long aggrevating 6 months after listing my home on the MLS to sell it now I can refinance it. (a rule in the mortgage industry in which if you list your home and then take it off MLS you have to wait 6 month period before refinancing it).
So my credit score still sucks for some reason. I’m sure it has to do with my high debt/income ratio still at 650-680 which will force me to take a investment refinance loan at 80% having no PMI in the new loan with payments on $96000 at $784. I’m currently collecting $775 which would leave me a little bit negative, but I can get $31,000 cash to use on 2 new rental properties that will generate again higher ROI with long-term increase in assessment values since they are both foreclosures. I’m looking to buy 2 more single family homes in the $60-70k range that need little work and get loans at 7.5% investment making around $150-200/month cashflow which would cancel my -$25 dollar from refinancing increasing my mortgage vs. rent of $725. Plus I’d own 3 properties in the same area which are lower priced homes giving them more room to move up in price in the next 5-10 years.
I’m close to finished closing on my hawaii single family condo 3/2. I can’t wait to move in and will like refinance my mortgage in 6 months IF by some chance I can get a lower rate and use a bundle of that equity to buy more single family homes in VA or another investment in HI. Or I might just leave the equity open for something down the line.
My Visa May Calls are going to expire too. I’m getting quite frenzy over them and want to sell out extremely soon. I’m waiting because there is a huge support wick on the daily charts from yesterdays drop to $78 showing someone big buying up the stock, but it hasn’t moved past $85 yet and my options are being worthless the sooner they get to friday. I’ll be very fortunate if the stock pops up past $85 and I’m able to sell out profitably. I clearly need and want to be in aapl stock options right now, but first I need to sell out profitably up out of V calls.
This entry was posted on May 13, 2008 by Paul. It was filed under trading stock options and was tagged with buying new rental properties in newport news va, hampton roads, hawaii home equity, mls rules, mortgage, refinancing my single family investment rental home, va, visa v may call options.