Refinancing my Rehabbed House - Posted by Josh

Posted by Alex Sc on August 26, 2008 at 04:04:57:

Just my two cents if you are positive cash flow right now.With todays economy I would leave it alone.You are hoping buyer can buy.There are a alot of variables to take in account.Every house I lease option i do not count on it selling until the day I show up to the closing (just a little humor)

I know thats brief but hope that helps

Alex Franks

Refinancing my Rehabbed House - Posted by Josh

Posted by Josh on August 25, 2008 at 18:39:53:

To all investors:

I just recently lease-optioned my rehabbed house. Due to the fact that this property took so long to move with all the dead -beat tenants I went through… my profit margins have been cut to basically I will break even or just loose a few thousand depending on any other expenses coming up. My question is this… I have a fixed loan rate at like 7.something % on a 30 year plan I believe… the rent for the house creates a cash flow of 100 but I could make a lot more if I refinance for an interest only loan (since the lease is for a max of 2 years and the guy wants to buy ASAP). How easy is it to refinance right now? If I refinance for a lower monthly mortgage (interest-only) is it really worth it considering the fees incurred etc? Please leave your experience

Re: Refinancing my Rehabbed House - Posted by erin

Posted by erin on August 26, 2008 at 05:10:40:

I have done that on all my rehabs that I have rented. Expect 70-75% loan to value, nothing outrageous as far as fees go (depending on your credit), and it to take about 2-3 months. Depending on the price of the house, interest only and a standard mortgage are not that different (and in my opinion is one of the reasons we are in the current situation). If you cash flow now, I would let it ride and cross your fingers nothing big comes up (read major plumbing repairs). At the end of the year, you should do ok with depreciation and the slight cash flow to keep going. Once he is ready to buy, go from there, but I always assume he/she is a renter until I see a pre-approval form with a number that is close to what we had negotiated. Just my $.02