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Answers (6)
- sunnyview
- Contributions:25127
Maybe you could consider moving back into the rental house and making it your primary for purposes of doing an owner occupied refinance? I know it's a stretch, but it may give you another option.
You could run the numbers here and see if the hassle might be worth it with an owner occupied refi. Since Fannie and Freddie are out maybe you could do an FHA streamline with no required appraisal.
I would talk to a broker and ask what options you would have if the property was owner occupied instead of an investment property, then see if it's worth it to move back in for a time to make the numbers work.
You could run the numbers here and see if the hassle might be worth it with an owner occupied refi. Since Fannie and Freddie are out maybe you could do an FHA streamline with no required appraisal.
I would talk to a broker and ask what options you would have if the property was owner occupied instead of an investment property, then see if it's worth it to move back in for a time to make the numbers work.
- Paul Drury, "PaulWDrury"
- Contributions:22
Have you spoken with a Real Estate Investment Advisor as well? There are still some options available for you depending upon the potential cash flow and an investor's leveraged position which may be better than yours.
Most Planned Investors are seeking a "Rate of Return" on their hard investment which will change subject to the interest rates and the amount they invested up front. It is possible that your property, while not profitable for you, may possibly be profitable for someone else depending upon their "position". I recommend you speak with a local specialist, someone who has had schooling in Real Estate Investment Analysis.
If you wish to know more than that, we would need to communicate one -on-one, as additional questions to you would most probably be relatively confidential and not appropriate to share over the internet.
Most Planned Investors are seeking a "Rate of Return" on their hard investment which will change subject to the interest rates and the amount they invested up front. It is possible that your property, while not profitable for you, may possibly be profitable for someone else depending upon their "position". I recommend you speak with a local specialist, someone who has had schooling in Real Estate Investment Analysis.
If you wish to know more than that, we would need to communicate one -on-one, as additional questions to you would most probably be relatively confidential and not appropriate to share over the internet.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3421
No. If not owned by Fannie or Freddie you won't find any refinance options. Of course it is frustrating that you are "stuck" with your loan, but you have to realize from the bank perspective it would be incredibly foolish to loan more than the current value on an investment property, especially at a low rate.
The risk/reward from their perspective is obviously not a good investment for them.
The risk/reward from their perspective is obviously not a good investment for them.
- taralyn416
- Contributions:2
This property is a conventional mortgage and not owned by Fannie Mae or Freddie Mac, I already checked that. Now let's have a cup of coffee..... It was purchased as my primary residence 12 years ago, for FAR more than it was worth, when I didn't know enough to do more (any) research. It became an "investment" property when I got divorced three years ago and it did not sell after being listed by a very reputable real estate agent for nearly two years. The bank will, of course, not entertain any offer of a short sale since it is not delinquent, and I didn't have any offer within $30k of what is owed. A $30k bill is a tough loan to take when after I pay it back, I'll have nothing to show for it. After two years of swinging both mortgage payments, I caved and just rented it so it wouldn't be such a financial burden. I want to tell a bank to give me the better rate and let me refinance because if I was gonna walk away and let it foreclose, I would have done that by now! I promise I'll pay, I just want to lower that payment every month, that's all. Know of any banks that will do THAT?
You should check to see if your mortgage is owned by Fannie Mae or Freddie Mac as you may be eligible for a HARP refinance.
Check Fannie
Check Freddie
If your mortgage is owned by either of those then you should speak with a licensed loan officer in your state.
If you originally purchased with an FHA mortgage and later converted it to a rental you may also have options with FHA.
Check Fannie
Check Freddie
If your mortgage is owned by either of those then you should speak with a licensed loan officer in your state.
If you originally purchased with an FHA mortgage and later converted it to a rental you may also have options with FHA.
- Paul Drury, "PaulWDrury"
- Contributions:22
If you were to ask me that question over a cup of coffee, I might start by asking you why you still own such a property in Elyria right now. Elyria is one of the best investment markets in Northern Ohio.
As you have already found out, the Lenders have tough new standards. Have you sat down with a real estate investment counselor who can evaluate the property and perform a true investment analysis of it. There are three traditional approaches to value; 1) Market analysis, which is an estimated straight up market sale; 2) An Income Approach, which evaluates the investment potential valuation; and 3) and a Cost New Approach, which measures the cost to build it new, less apparent depreciation.
For a true Income Approach, you should have a formal APOD created and the net income before and after taxes will be used to evaluate the return on the investment (actual and potential). From there a Capitalization Rate will help the evaluator set the value. A Gross Rent Multiplier does not provide an accurate Income Valuation.
Unfortunately, your property may now be more valuable to a new owner than to you, because of the change in value based upon the lower interest rate for their loan or their leveraged cash position. Please make sure you have had a proper evaluation of the income stream, including maintenance and depreciation.
Another possibility is a "Like Kind Exchange" where you swap your property for another and move your basis to the next property. I recommend you contact a qualified Real Estate Investment Specialist who understands the concepts outlined above before you try and take additional steps.
As you have already found out, the Lenders have tough new standards. Have you sat down with a real estate investment counselor who can evaluate the property and perform a true investment analysis of it. There are three traditional approaches to value; 1) Market analysis, which is an estimated straight up market sale; 2) An Income Approach, which evaluates the investment potential valuation; and 3) and a Cost New Approach, which measures the cost to build it new, less apparent depreciation.
For a true Income Approach, you should have a formal APOD created and the net income before and after taxes will be used to evaluate the return on the investment (actual and potential). From there a Capitalization Rate will help the evaluator set the value. A Gross Rent Multiplier does not provide an accurate Income Valuation.
Unfortunately, your property may now be more valuable to a new owner than to you, because of the change in value based upon the lower interest rate for their loan or their leveraged cash position. Please make sure you have had a proper evaluation of the income stream, including maintenance and depreciation.
Another possibility is a "Like Kind Exchange" where you swap your property for another and move your basis to the next property. I recommend you contact a qualified Real Estate Investment Specialist who understands the concepts outlined above before you try and take additional steps.
Can I refinance my investment property if I owe more than it is worth to lower the payment?
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