All Forum Posts by: Andy Hailey

Hi Bigger Pockets! 

I am pretty new at REI and wanted to get some opinions about my current situation with my one and only rental property. It is a SFR that is renting for $1,100 per month. My current mortgage payment on the home is $914 per month. This property was bought when rates were higher and is financed at 5.5%. There is currently $90,000 remaining on the mortgage.

This is a newbie question, but should I be refinancing right now? Are there any negatives to doing this other than the cost of the refinance? If I do refinance, should I refinance at 30 years? 20? 15? Or even do a cash out refinance? 

Thanks for your opinions and insight! 

Andy

How did this work out for you?

I have found a HUD home that my wife and I love. We are considering attempting to buy it for our personal home. Any advice that you guys have for this situation? I have only looked into HUD from an investor perspective. This property is still in the owner occupant bidding period. Thank you!

Hi BP community! I'm looking for some opinions on this. I am currently managing my first rental that was at one time my wife's primary residence. It is a SFH that rents for $1,100 a month and the mortgage is a few dollars under $900 per month. Problem is that at the time of the loan origination, interest rates were higher and we currently have a rate of 5.5%.

We have paid on the house for 7 years of a 30 year mortgage. Should I refinance into the low 3s to increase my cash flow to around 400 a month or should I leave it as is? Thanks for the help everyone. 

Hi Jeff,  I'll try to answer a few of your questions here. 

First of all, I am planning to self manage. I'm wanting to self manage until I have several rentals in the future and can justify property management. 

The utilities in the building are done differently from landlord to landlord. Seems like most of them let the tenants handle it and split it among them.  Others offer paid utilities and adjust rents accordingly. 

Luckily, the university here is growing very rapidly. However there is a fairly large student housing apartment complex being built right now that is scheduled to open this fall. This is a concern of mine. 

I love the idea of speaking with some of the current owners. I will try to reach out to some of them. 

Thank you!

I think I posted this in the wrong area initially,  so I'm trying again. 

 I have been wishing and dreaming about getting into real estate for quite some time. So I began reading and learning as much on here as possible. One day I felt ready, and this culminated with an offer on a foreclosed house that I wanted to flip. The spouse and I lost out on the house by two thousand dollars. We have since decided that we would like to go in more of a buy and hold direction. 

So the deal we're currently looking at is a 4 bed 4 bath condo in a large complex that is used for student housing very close to a large university. The unit can be had for $110,000. The numbers I have ran come out like this. All of these have been discussed with my bank, county, and insurance agency to be pretty reliable. 

We would put 20% down, Leaving a loan of $88,000. This leaves us a mortgage payment of 452 per month. Monthly taxes of 125, insurance of 75 and a home owners association fee of 170. Coming to a total of $822 per month. 

These units rent at a per bedroom price, with prices ranging from 350-500 per room per month. I have ran my numbers with an expected rent of 400 per room or 1,600 per unit. This leaves a gross profit of 778 per month before repairs and vacancy costs. 

What do you guys think? Thanks a lot for the help!

The rental price I mentioned above is per room. I should have said they range from $1,400 to $2,000  

Thank you Steve! I will be emailing you shortly. 

I know that I need to budget accordingly for repairs. I am open to advice on how much you think is reasonable to budget for repairs. 

I used a rent of $1,600 because that is what the unit is currently rented for. The other 4 bedroom units in the same complex rent for anywhere between $350 on the low end and $500 on the high end. Some of the high end prices offer partial utilities. Some do not and have a higher end look. 

I have been wishing and dreaming about getting into real estate for quite some time. So I began reading and learning as much on here as possible. One day I felt ready, and this culminated with an offer on a foreclosed house that I wanted to flip. The spouse and I lost out on the house by two thousand dollars. We have since decided that we would like to go in more of a buy and hold direction. 

So the deal we're currently looking at is a 4 bed 4 bath condo in a large complex that is used for student housing very close to a large university. The unit can be had for $110,000. The numbers I have ran come out like this. All of these have been discussed with my bank, county, and insurance agency to be pretty reliable. 

We would put 20% down, Leaving a loan of $88,000. This leaves us a mortgage payment of 452 per month. Monthly taxes of 125, insurance of 75 and a home owners association fee of 170. Coming to a total of $822 per month. 

These units rent at a per bedroom price, with prices ranging from 350-500 per room per month. I have ran my numbers with an expected rent of 400 per room or 1,600 per unit. This leaves a gross profit of 778 per month before repairs and vacancy costs. 

What do you guys think? Thanks a lot for the help!

@John white 

I am also currently considering my first buy and hold deal, but I come with a lot less experience in the real estate world than you. I was wondering about the tax advantages for landlords that you speak of. Could you provide some insight as to what advantages you are referring to? Thank you!