1 Year Later Now What?
First of all thanks to all of you that post here. I am 25yrs old I now have aprox 70k in equity thanks to your tips and confidence boosting posts.
The story so far:
I have been looking at buying a primary residence for the last 2 years and finally last year I quit my job in Philadelphia and flew to San Deigo (My dream city) to buy a house....wound up spending 435k after reading and researching here for 3 months prior. Grant it, this has stretched my budget to the max but I pulled it off over the last year and I would like to make my next move asap. At the end of the month I currently have just enough money for food and beer so as you can probably guess I am itching to get out of my high interest creditcard and car debt. With that said I need to take a large chunk of my equity out to pay off debt and I figured as long as I was doing this I may as well pull another 100% loan and maximize my prepayment and escrow charges.
After renovations and appreciation the house has appraised for 507k and I am now in the position to refinance the house.
Currently I have aprox 25k between creditcard debt and a car loan. My creditscore is around 630 and my income is roughtly 75k stated. The first mortgage of 348k is @ 6.25% and my second (80/20 financing) of 78k is @ 10%.....I took this loan only because of the situation I was in and with the intentions of refi asap.
1.) I am on the right track taking the equity all out.....I know I can save 1000-1500 a month after this refi with no more high interest payments and cc payments. Is this equity worth anything to me in my next REI investment other than being money in the bank?
2.) With the leftover refi money I would like to make my next REI purchase. What should it be...I feel kinda comfortable with the rehab scenerio...I am fairly handy and dont mind getting dirty. Should I stick to this?
Again thanks to all of you who take the time to read our questions.
Cisco
No advice from anyone?
pretty please..?