Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago on . Most recent reply

Account Closed
3
Votes |
9
Posts

Have equity with 2 houses, don't know where to start

Account Closed
Posted

Hey there guys,

I have been a working in the software sector and saving up for the last 11 years since college and have bought 2 houses so far but have not rented them out. What caused me to buy 2 houses is that I believe that real estate is a good and safe way to store wealth against inflation. Now I read into bigger pockets and really want to get into the whole real estate investing where I either rent out the properties or refi the properties and pull out the equity to buy more properties. What scares me away is tenant issues which I know will come up at some point, also I renovated the houses myself and put a lot of sweat into them, and reading about properties getting trashed by tenants really scares me away from renting the properties out.

house #1 I bought for 260k and it is now worth 400k-420k , it is currently my vacation home located in Henderson NV (comparable rent is 2000 a month) tax is 2150 a year , insurance is 1400 a year

house #2 I bought for 356k and it is now worth 450-470k in Cary NC. This is currently my primary residence (comparable rent is 2300 a month) tax is 4240 a year , insurance is 1480 a year

I was thinking about doing a cash out refi on my primary residence and then buying a house to rent out and also renting out the Henderson home once I clear the home of my furniture etc. Either that or use the money from the refi and buy a smaller home to live in and rent both homes out. I also thought about selling one of the properties, but from what I have read online, it is better to hold onto the properties and do cash out refis against them if I need the money. Just looking for advice, what would you do if you were in my situation?

Most Popular Reply

User Stats

127
Posts
74
Votes
Mary Cronin
  • Real Estate Investor
  • Crescent Mills, CA
74
Votes |
127
Posts
Mary Cronin
  • Real Estate Investor
  • Crescent Mills, CA
Replied

You pay the manager a percentage - I've recently seen as low as 6% and as high as 10%. They will arrange and pay for repairs from the income and send the net to you. They will of course ask for more if it's a major expense (HVAC roof etc). They'll also handle evictions and move-ins/outs (probably an extra fee). 

  • Mary Cronin
  • Loading replies...