Cash all tied-up, stressed-out; advice needed!

[Jacqueline Coombs]

Hi, everyone! I am stressing out as I seem to have gotten myself into a pickle with my cash all tied up! I do believe there is a solution so I am asking for some seasoned advice. Here is my current situation: My portfolio: SFR #1 purchased conventionally Oct 2016 for 55k, rented for $800/mo which is $300 under market until lease is up and I can update property and rent it for $1100/mo. Value is about $70k as-is 11k down, financed 44k SFR #2 purchased with my own cash Feb 2017 for 28k, rehab (my cash) came to almost 35k, ARV approximately 80k and will be rented Aug 1st at $1100/mo. Total cash invested 63k SFR #3 purchased with partner June 2016 for 32,500, rented at $1050/mo section 8, needs updating eventually with ARV approximately 85k. Total cash invested $16,250 (I want to buy out my partner. His 16,250 + another 10k, so 26,250 total to buy his portion, then I will be all-in for 42,500.) Condo pending now and after sale I will have about 60k to use to put into other purchases. (I spent about 10k more than I planned on rehabbing it but I am still coming out about 15k ahead.) Off-market SFR under contract for 36k, needs about 20k in repairs and will rent for $1100/mo. I don't want to let this one go! Not Real Estate but I have a healthy amount in stocks which my husband and I would like to leave alone for now. Problem is, I am completely illiquid. Credit cards are carrying a balance after rehabbing the condo which is very uncomfortable, my rehab reserves are tapped out and I also have a 401k loan out for 50k which is taking a large portion of my husband's takehome pay from his job due to the 50k loan 5 year amortization. After my condo sale closes, I will have enough to buy my partner out of SFR #3 but not enough to also buy and rehab the off-market SFR. I have considered wholesaling the off-market SFR but with the competition in the market, my gut is telling me to figure something out and hang onto it! If I could get a cash-out refi on SFR #2, it could work but the timing would not if I went conventional. Ideally, I would want a commercial blanket loan to cover them all and take cash-out or a LOC to keep BRRRRing. My first goal is to BRRRR until I have at least 20 cash-flowing units. Has anyone else run into this situation? I have talked with a few mortgage brokers and I keep running into the seasoning requirements and they won't touch the partnered deal. I think I need non-fanny and Freddy financing. I am almost paralyzed looking at dozens of lenders and the thought of going through conventional financing again turns my stomach, lol. If anyone has the time to read this and reply, I would be thrilled to hear what your opinion on the situation is! Thanks a bunch! Jackie Botham, GR, MI

[Cody L.]

I feel for you. I've been there. A quickly growing net worth but no cash. I've borrowed from 401k to buy property. Borrowed from family. Even used quarters from my laundry machines. Closed at times in order to maximize seller prorations. Etc.

It's scary. But those stories are all in the rear view.

So long as you're able to keep your head above water just hang on and ride it out.

Or if you're really stressed simply sell off some stock, and buy it back later. I don't think that will "cost" you anything unless stocks move up dramatically higher (doubt it).

I've long since sold off stock to buy property but if I was out of cash and had stock I'd sell them in a heartbeat to buy property. And if I really wanted stock long term I'd sell to get me over this hump and buy again later. Who knows you might buy them back for less than sold for.