Posted by Dawn Ann on December 10, 2000 at 14:03:39:
Hello Mr. Garcia
I bought my first house three years ago on a land contract. After reading this terrific site, I think I did good because it had built-in equity, which I barely understood at that time. At this point, I wouldn’t even call myself a newbie but a wannabe. I will try to give as many details as possible to assist in your reply:
owner occupied SFR in Kentucky
sq. ft.: 2033, including nicely finished walk-out basement.
other buildings: Nice block out-building with electricity, cabinets, and built-in shelves (may also have phone and water – not sure)
fenced backyard, two driveways, two attic areas – one kind of finished, one not, new fold-in windows, hardwood floors, tiled bathroom
purchase price: $56,500
down payment: 8,500
interest rate: 9.5
land contract with 5-year balloon
of payments so far: 37
credit at the time of purchase: A (don’t know score)
credit now: don’t know score, but not so good
house payment history: Good
montly payment: $450.00 (I pay taxes and insurance separately)
unofficial appraisal 2 years ago: $62,000
online unofficial appraisal recently: $67,000-77,000
income: very low now because of current circumstances, changing for the better, but not quickly enough
time on job: 4.5 years
previous employer: 5.5 years
time in same occupation: 11.5 years
age: 36
assets: 1992 Ford Mustang, bought new, 70,000 miles, worth $2,000-2,500; and three kids – ha! 
No savings or cash on hand, etc.
I need cash fast and was wondering if refinancing (to get the house in my name so that payments show on my credit report and get cash out) would be better than a second mortgage. I will have to do this at some point in the next two years anyway due to the upcoming balloon. I want to make the most of the equity that I have and start creatively investing in real estate. If outright selling/lease option, etc., would be the best idea, I would do that, in effect using this house as my first deal. I was thinking of buying a duplex, living in one side and renting the other, although I realize it would be much cheaper and easier, especially for my kids, to stay in this house. Conventional loans are out of the question right now. How can I make the most of this situation? Again, I need cash fast (to pay off debt and have Christmas). Thank you for any guidance.
Dawn Ann
p.s. I called your office in Ohio last week and I’m eagerly waiting to speak with you.