Investor · Houston TX · Member since 2016 · 17 posts · 6 votes
Greetings everyone!
I am an investor who has grown a small portfolio and am stuck on what options to consider to grow.
I live in Houston.
I have 3 homes currently:
1. Personal Residence ($210k balance at 3% for 15 year) Appraisal Value $400k
2. Rental One ($100k balance at 3% for 15 years) AV $210k
3. Rental Two ($145k balance at 4.5% for 30 years) AV $200k
As you can see I have aggressively paid down my personal home over the 4 years.
I don't know how to add a 3rd rental as most lenders tell me that my debt to income is high.
I have enough saving that I can pay off extra $24k every year but trying to figure should I pay off the lowest balance 1st and then finance a 3rd property after 4 years. Or save the $100k and buy a smaller home in cash.
Basically am stuck on how to grow my portfolio? Any guidance would be appreciated.
Morning looks like a very impressive portfolio . I am a huge fan of debt reduction. Looks like you have some amazing rates awesome job. A few questions for your post.
1.) What is your primary objective? Cask flow? Appreciation? Debt reduction thru tenants?
2.) Are you opposed to HELOC on your personal residence?
3.) Why not smash down the 2nd rental to a 15 year amortization?
I am a huge fan of purchasing with todays dollars to obtain todays appreciation. If you wait to "pay cash" you lose 4 years of appreciation. I own 62 rentals buying and selling monthly / reworking my portfolio working toward some very specific goals which will be obtained 12-31-2018 and moving forward. Key is your objectives. Many ways to answer your question. Let me know how I can help.
Morning looks like a very impressive portfolio . I am a huge fan of debt reduction. Looks like you have some amazing rates awesome job. A few questions for your post.
1.) What is your primary objective? Cask flow? Appreciation? Debt reduction thru tenants?
Debt Reduction through tenants and having a Cash flow.
2.) Are you opposed to HELOC on your personal residence?
I have a 3% rate on my personal residence. The HELOC would be on a higher rate I would assume now since rates have gone up.
3.) Why not smash down the 2nd rental to a 15 year amortization?
My all 3 homes are from the same lender. I had to get a 30 year mortgage to qualify for that 2nd rental due to the payment being higher on a 15 year mortgage.
I am a huge fan of purchasing with todays dollars to obtain todays appreciation. If you wait to "pay cash" you lose 4 years of appreciation. I own 62 rentals buying and selling monthly / reworking my portfolio working toward some very specific goals which will be obtained 12-31-2018 and moving forward. Key is your objectives. Many ways to answer your question. Let me know how I can help.