“Refinancing Investment Properties”

“Refinancing Investment Properties”

 

 

 

So based on our conversation, I'll need to keep it for 6mo. If it appraises for 150K, then is the maximum mortgage I can take out 105K (70%) or is the maximum cash I can take out 105K? I just want to make sure I'm clear on my numbers. I wanted to take out a mortgage for around 135K, but I don't know if I can just pick and choose the value I want, as long as it's under the appraised amount?

Thanks!

Amanda

 

Unfortunately, many are a bit unrealistic when it comes to refinancing investment properties. In Amanda’s situation if her property will in fact be worth $150,000 after renovations and 6 months of ownership, the loan amount would be $105,000, not the $135,000 that she wants.

 

I explained to her that the property would have to appraise over $190,000. She told me that her research showed that value would be closer to $150,000, but she is willing to have the property appraised to make sure.

 

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Comment balloon 6 commentsJoe Petrowsky • December 30 2016 04:44PM

Comments

Hi Joe Petrowsky - Amanda is doing the right thing by getting the property appraised. It will give her a baseline. But wouldn't there be a mortgage appraisal anyway? 

Posted by Sheri Sperry - MCNE®, (928) 274-7355 ~ YOUR Solutions REALTOR® (Coldwell Banker Residential Brokerage) 7 months ago

The need for correct information is why it is so important for you to be involved in the process and provide the details! 

Posted by Kat Palmiotti, The House Kat (Grand Lux Realty, 914-419-0270, kat@thehousekat.com) 7 months ago

Joe Petrowsky I network with a lot of investors interested in cashing out equity on investment property. So many of them don't understand the basics. Thanks!

Posted by Nathan Gesner, Broker / Property Manager (American West Realty & Management) 7 months ago

Good morning Joe. Not a queston of what you want as mauch as what can I get? Enjoy your day!

Posted by Wayne Martin, Real Estate Broker (Wayne M Martin) 7 months ago

Good morning Joe. Very informative. Investment properties are unique on so many levels. I remember.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) 7 months ago

Good advice. A lot of potential investors call me to get fixer uppers thinking that they can refi at a zero our of pocket loan. 

Posted by Joe Pryor, REALTOR® - Oklahoma Investment Properties (The Virtual Real Estate Team) 7 months ago

Participate