80/20 ARM Loan HIGH RATES on a duplex 20yr old investor Am I screwed? Plz Help!!?

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I am 20 years old from washington, I managed to get a loan and buy a duplex w/$0 down 80/20 Arm loan 80@7.5% 115,000 and 20@11.5 32,000 Yes rates are very high but w/ 0 down and no assets I had to take what I was given. I will be paying interest for the first 2 years and I have no extra money to pay extra on top of my minimum payment. I am losing $. I rent out both units@$1125 + $115 water +75 add to mortgage payment so I'm losing $190 a month, I cannot raise rent it's already up there. I cannot refi for atleast 2 years. I bought the duplex for 147,000 (including closing costs). It's been appraised at only 148,000 so I bought it at top dollar. Lol I am 20 come on =).I'm curious should I just sell in 2 years and walk out? Since rates are going up I cannot afford paying my bills plus property additional bills.Both tenants are planning to stay for atleast 2 years.I plan to expand after I take care of this prob.Provide me w/ some thoughts on what you think + what future holds for me. THX!!

80/20 ARM Loan HIGH RATES on a duplex 20yr old investor Am I screwed? Plz Help!!?

Why do you keep asking same question?

You are not cash flow positive, but you said you only lose $190 a month. That is going to fine.

Good luck!

80/20 ARM Loan HIGH RATES on a duplex 20yr old investor Am I screwed? Plz Help!!?

You can have some hope. You bought the property with 100% financing when your credit score was low (must have been low to get that high interest rate). Now you are working to improve your credit and your property is appreciating (you said $148k but I'm assuming that's the tax appraisal value, not the fair market value which is typically higher). Check with a loan officer (like me) about refinancing. If your credit score has improved and/or the property has appreciated, it may be worth it to refinance now even with a prepayment penalty. Explore your options.

Rick Lanicek

www.primelendingonline.com

80/20 ARM Loan HIGH RATES on a duplex 20yr old investor Am I screwed? Plz Help!!?

http://www.nohasslebargains.com/loan/id1...

80/20 ARM Loan HIGH RATES on a duplex 20yr old investor Am I screwed? Plz Help!!?

You are ok. At least you do not have large PMI payments. Your interest is tax deductable and you can always refinance out of those rates when you have some equity. It is much bettter then renting.

80/20 ARM Loan HIGH RATES on a duplex 20yr old investor Am I screwed? Plz Help!!?

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