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Updated 8 months ago on . Most recent reply

User Stats

24
Posts
8
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Jason Mergl
  • Rental Property Investor
  • Saratoga Springs, NY
8
Votes |
24
Posts

What to do with my Equity?

Jason Mergl
  • Rental Property Investor
  • Saratoga Springs, NY
Posted

I'm seeking advice on how to best utilize my equity across multiple properties. Below are the details of each property, including purchase price, current estimate, and equity, along with their respective cash flows:

Home 1 - Condo, (2 BR, 2 Bth)  Fayetteville,NC-  Purchase price $50,000 - Current Estimate $75,000, loan amount 0 = Equity $75,000
Cash flow - Rent - $825, PM Fees $75, HOA Fee $100, HOA Assessment $163, Taxes $50, Ins $25, Loan Pmt $0 = Cash Flow $412

Home 2 - Condo (3 Br, 2 Bth) Fayetteville,NC- Purchase price $89,000 - Current Estimate $155,000, loan amount 0 = Equity $155,000
Cash flow - Rent - $1250, PM Fees $112.5, HOA Fee $231, Taxes $90, Ins $30, Loan Pmt $0 = Cash Flow $786

Home 3 - SFH (3 br, 2 Bth) Little Rock, Ar - Purchase price $189,000 - Current Estimate $300,000, loan amount $85,000 = Equity $215,000
Cash flow - Rent - $1500, PM Fees $150, Taxes $269, Ins $156, Loan Pmt $766 = Cash Flow $159

Home 4 - SFH (3br, 2 Bth) Abilene,TX - Purchase price $225,000 - Current Estimate $315,000, loan amount $51,600 = Equity $265,000
Cash flow - Rent - $1850, PM Fees $185, Taxes $583, Ins $145, Loan Pmt $1400 (0 Interest) = Cash Flow -$463

Total Equity = $710,000

Total Cash Flow = $894

Sell, Sell with 1031 exchange, Cashout Refinance, HELOC'S...Too many options, i don't know what to do. I know I need to do something with all of this untapped equity.

What do you think are the best options for me to utilize this equity effectively, and why do you recommend those particular choices?

Thanks

  • Jason Mergl
  • Most Popular Reply

    User Stats

    1,059
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    870
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    Melanie P.
    #3 General Real Estate Investing Contributor
    • Rental Property Investor
    870
    Votes |
    1,059
    Posts
    Melanie P.
    #3 General Real Estate Investing Contributor
    • Rental Property Investor
    Replied
    Quote from @Leslie Pappas:

    Hi Jason, if you want to purchase another rental property(s) and actively manage it, a 1031 may be a great solution for them. If you don't want to manage another property, you can do a 1031 and invest in a DST, becoming a passive investor. They are hands-off, institutional grade real estate investments, and they allow you the option to diversify into offerings in markets across the country.


     Which DSTs are you recommending amd which "institutions" have their money invested with them?

    Selling your real property and buying into a syndication is similar to selling to go to Las Vegas. Read up on recent syndicator results here (paused distributions, captial calls, lost principal) before altering course. A 1031 exchange would seem to make a lot of sense, but you need to have a firm plan in place to execute on this when you sell. 

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