All Forum Posts by: Andy Collins

@Jessica Semrad I’m in a similar situation and decided to go the cash out refi route. I like having a low, fixed interest rate and the same payment every month. I found heloc rates are variable and therefore payments could be quite higher in a few years. I would reach out to your lender and discuss the different options and see what you’re comfortable with.

@Allen McGlashing thank you for the input. That’s what I decided to do. I’m trying to get someone to quote it along with some other issues that came up in the inspection.

I was worried because we only had three days post inspection to notify the sellers but they agreed to extend the timeline while we work it out.

Looking to purchase a SFR and got the home inspection report back. An area of concern is the front concrete steps. The first step is higher than the others and another side railing is recommended to cover both sides. Should I ask them to fix this? Would insurance accept it or even look at it? It probably wouldn't be cheap being concrete but does seem like a liability.

The back entrance has a similar problem with the last step being higher than all the others. It honestly looks like the whole slab sunk down a few inches, but looks like a wooden landing and steps could be built over it as maybe a cheaper option.

Other than that and getting some basement leaky pipes checked out it seems pretty solid considering it’s age.

I think I would.  I like the idea of being debt free and not beholden to monthly payments.  It feels more liberating.  If houses didn’t cost half a million where I live and we’re more in the 100s or 200s I would be tempted to pay it off too. I think I would have more options to pursues other interests outside of of my w2.  

@Tyler McDonald welcome, I'm in the same boat. We bought a condo and rented it out when bought a house and had kids. Said condo now has $200k equity and should help us buy more properties when our tenants term is up. We're just purchasing our first non accidental investment SFR now.

@Dennis Maynard

Personally I took the Dave Ramsey approach and paid off all debt, cars and student debt and anything else, except for our mortgages. I could never buy in to paying off our house especially when homes are so expensive in Colorado and rates being so low.

@Stuart Grazier thanks for that break down. I felt I could be doing more with that equity, but that really shows how little it’s doing for me.

I’ve started to look around for other investments. The Colorado front range is expensive so I’ve been looking at Iowa and Ohio. Mainly other SFRs because a family member works for a local PM company and that’s what they swear by, but I’m drawn to multi family properties from what others have mentioned too. Are there other specific asset classes you would recommend.

@Justin Phillips I bought the condo on 2007 and moved out in 2013. I’m not familiar with the 2/5 rule but it looks like I’m out of luck from what I looked up. Good to keep in mind for the future though.

I’ll also talk to my lender about a 1st position Heloc. Thanks for that tip!

I became a landlord by accident years back when I moved out of a condo and into a SFR and started renting it. I now want to proactively invest in more properties, but feel I need to access the equity in my condo or SFR to do so.

What options do you all suggest and why?  

• Cash-out refi on the condo or SFR
• HELOC on the SFR
• 1031 on the condo
• Something else?

The condo cash flows about $100/month, but has gained a lot of equity over the years.  My house has also gained in equity.  Both properties are on the Colorado Front Range.

1bd/1bath Condo

• Value - $300,000
• Principal Balance - $80,000
• Current Rent - $1,200
• HOA - $180
• Taxes - $1641
• Cash Flow - $100/month
• Tenant Lease End Date - March 2022

3bd/2bath House 

• Value - $465,000-$500,000
• Principal Balance - $278,400
• No HOA
• Taxes - $2,345

I feel like the 1031 on the condo would be the most advantageous route, especially since the property doesn't cash flow much and a refi would cause me to break even or maybe even go negative, but understand from some of the BP books that there's limited time to identify and buy properties that route.  

Really would appreciate any feedback.  Thanks!