All Forum Posts by: Anthony Hidalgo

Aubrey thanks for the reply! That is one of the downfalls we were considering by midterm/long term rent by room.  We may have an out lined up.  We're waiting for a reasonable accomodation for our section 8 tenant that lives in our other property in the Springs.  If that works out we will get about $3600-$3700 total.  We would be responsible for utilities is the only down side.

Quote from @Aubrey Maldonado:

With the growth that is still expected in the CO Springs area in the coming years, I'd try to hold onto it as much as makes sense. 

If you're shooting for a ~26% increase in rent to cover the mortgage, rent by the room does sound like the best scenario in your situation to be able to keep your investment as long as you can get the right group of renters to join in on it. At least, if you advertise each room separately, you're placing people in a house who might not have otherwise found each other and can get a house more affordably than they would on their own. I'd give it a try!

As @Jefferson Black pointed out, furnishing a rental is a hefty ticket and the turnover can be a lot to manage (esp. if you happen to be out of state/country). If it doesn't look like there's enough margin to make it significantly greater than renting by the room, I wouldn't do it.

Quote from @Brian Bohrer:

Hello @Anthony Hidalgo,

I will say that you are definitely not alone in your situation. There are many buyers out there who purchased in 2020 to mid-2022 and are in the same boat! Either their home may not be worth as much as they expected when sold or insurance and taxes have increased to the point that the rent no longer covers the PITI. I run a property management business here in Colorado Springs and have seen this situation many times over.

If your goal is to build wealth, then I would not suggest selling the home.  As Greg mentioned above, the appreciation and principal paydown is most likely more than the "loss" of $600 per month that you are paying in.  As long as you can afford to cover this difference, then you are still in a good position to build wealth in the future once rents catch-up.  

If you are interested in hearing about how I can help you lose less per month on your rental property, I would love to chat!  I specialize in finding creative ways to make the rental work for you now while we wait for the home to build equity over the next 2-5 years so it can be sold for a profit in the future, or at least until rents improve enough to cover the mortgage.  I wish you the best in your adventure, just don't sell!!

Brian Bohrer - GRRS Inc

This is Plan A.  We would like to keep it if the #s work.  We did this with our other rentals, but this is the largest negative cash flow we've encountered.  More than likely it'll even out in the next few years.  We just need to weather the storm while prepping for military retirement as well.

thanks!

Quote from @Jay Hurst:

Quote from @Anthony Hidalgo:

Quote from @Jay Hurst:

Quote from @Anthony Hidalgo:

Hello, BP family! We have run into a dilemma. Our tenant is breaking the lease early. We are in the 80925 area code of Colorado Springs close to Peterson SFB, Shriever SFB, and Fort Carson. Home is a 3700SF 5/3 Ranch with basement. Current remaining mortgage is 528k @4.375 VA.

Some of the options include:

Re-rent at a $600+ negative cash flow.  

Rent by room with all utilities included for $700-900 per room and $1000-1200 for the primary. ($3800-4800)

Fully furnished rental.  I'm new to this concept, but I've heard insurances will pay recently for displaced families.  

Traditional Sale in line with market.  We're waiting on an appraisal since there are no true comps in the area that have sold recently. 

Creative finance sale.  Still working on terms and waiting on appraisal.

Any information is welcome and greatly appreciated!

With the current tenant are you losing 600 a month?  Or, have rental rates dropped that much in your area? 

We were $450 below with the tenant that broke the lease.  We were receiving $2800 and mortgage was $3250.  With property tax adjustments and the mortgage company requesting an additional amount for possible future increases. Our payment is going up to $3700. 

 We can probably rent for $3000-$3200.  $3600 if we include utilities with a Section 8 Tenant.

 what is your current escrow shortage? 

 Just revisited the escrow document shortage is only $200 a month, and the forecasted increase is not on there.  Payment will only be $3575.  So that makes it a little more manageable

Quote from @Jay Hurst:

Quote from @Anthony Hidalgo:

Hello, BP family! We have run into a dilemma. Our tenant is breaking the lease early. We are in the 80925 area code of Colorado Springs close to Peterson SFB, Shriever SFB, and Fort Carson. Home is a 3700SF 5/3 Ranch with basement. Current remaining mortgage is 528k @4.375 VA.

Some of the options include:

Re-rent at a $600+ negative cash flow.  

Rent by room with all utilities included for $700-900 per room and $1000-1200 for the primary. ($3800-4800)

Fully furnished rental.  I'm new to this concept, but I've heard insurances will pay recently for displaced families.  

Traditional Sale in line with market.  We're waiting on an appraisal since there are no true comps in the area that have sold recently. 

Creative finance sale.  Still working on terms and waiting on appraisal.

Any information is welcome and greatly appreciated!

With the current tenant are you losing 600 a month?  Or, have rental rates dropped that much in your area? 

We were $450 below with the tenant that broke the lease.  We were receiving $2800 and mortgage was $3250.  With property tax adjustments and the mortgage company requesting an additional amount for possible future increases. Our payment is going up to $3700. 

 We can probably rent for $3000-$3200.  $3600 if we include utilities with a Section 8 Tenant.

Hello, BP family! We have run into a dilemma. Our tenant is breaking the lease early. We are in the 80925 area code of Colorado Springs close to Peterson SFB, Shriever SFB, and Fort Carson. Home is a 3700SF 5/3 Ranch with basement. Current remaining mortgage is 528k @4.375 VA.

Some of the options include:

Re-rent at a $600+ negative cash flow.  

Rent by room with all utilities included for $700-900 per room and $1000-1200 for the primary. ($3800-4800)

Fully furnished rental.  I'm new to this concept, but I've heard insurances will pay recently for displaced families.  

Traditional Sale in line with market.  We're waiting on an appraisal since there are no true comps in the area that have sold recently. 

Creative finance sale.  Still working on terms and waiting on appraisal.

Any information is welcome and greatly appreciated!

@Zach Edelman

Most are fixed rate for 5 years. All lower APR loans ranging from 6.99 to 12.99%. In 2 years the larger loan will be paid and will free up $1200 in payments.

I didn't want to accrue 7-10k in fees and a higher rate. That's why I was looking at a 2nd mortgage or HELOC.

@Seth Teel sent you a DM. Let's connect, I'd like to see what rates and terms you have available.

@Ben Rhodin thanks!  Yes please pass the lender informationalong.  We're interested in a second mortgage option.  A recent lender was not able to work with our KY or TX properties.
  
Many times we weren't in the home long enough to aquire enough equity before choosing a HELOC. The military has moved us around quite a bit.

Current KY rental is $1395, it'll be going up to $1495 end of August.  Mortgage is $840  Current TX rental is $1700, lease renews end of October.  We haven't discussed price increases with the tenant yet. Mortgage is $1280.   CO is $2895 and mortgage is $2075.

Hello, we recently PCSed (moved) to San Antonio, TX. we are a military family with 4 rental properties.  

Colorado Springs, CO - 480k / Owe 327k (3.6%)

Colorado Springs, CO - 630k / Owe 533k (4.3%)

El Paso, TX - 255k / Owe 133k (3.3%)

Radcliff, KY -  230k / owe 111k (3.3%)

We are looking to consolidate some loans/credit lines that we opened to make some improvements to our homes. Our goal is to purchase a primary home in San Antonio without selling one of our investments.

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