Recommendation for my situation...

[Dv8tor]

I want to get in to real estate investing and not sure what finance plan is the best. I owe $110K and my house is valued at around $330K. I currently have a ($120K) 30 year fixed @7.5% which I've had for 4 years. I want to get as much cash out to invest, but keep my monthly payments around the same as it is now. I plan on staying in my current home for another 2-5 years, then upgrade to a bigger home.

My neighbor has several rental properties and says he only does interest only loans on his home and all investment propoerties. My mentor who was my father just resently pasted away and was very successful in real estate investing, but he didn't have a chance to teach me. Thanks for your help.

[jtn]

Go into an arm short term. Get it int only since you do plan to move out. Pull as much as you can but also pull as much as your comfortable with. Email me if you have any questions.

[Zack G.]

Dv8tor, I work for a correspondent lender in Sunny Isles in Miami. I would sugguest that you go with a 3/1 ARM IO or a 5/1 ARM IO since you aren't planning on staying in your home for a long time, and cashout some of the equity that you need for investment purposes. I help a lot of my clients in refinancing and cashing out for a multitude of purposes.

Give me a call if you have any questions, I will be glad to help you.

Zack
305.940.2070 Office
954.263.4710 Cell

[jtn]

Zack I recommended a pick a pay. Based of the mta which is a 12 month rolling average I believe that as an investor it opens up more options for the client. He chooses from 4 different payments options the minimum payment, int only, 30 yr or 15 yr. I also believe that Libor is trash, thats why I didn't recommend it. He's more of an investor then someone who just wants to turn property. He might end up keeping the property a little more then 5 years as a rental unit, and by going into a 5-1 arm, he'll either have to take the hit for the adjustment or refi again.