All Forum Posts by: Anthony Terrones

@Trevor Greene valid point about finding another asset/investment that would have as good returns as this home. Grateful for your feedback and this is very useful as I consider my options!

 Cheryl, thank you so much for the feedback! This is exactly the sort of feedback I was hoping to get. 

We're building in Eagle, in the Legacy Community. We're so excited to be able to relocate and grow our family in ID! I'd love to chat further about this if you're willing... Would it make sense to share contact information via DM here?

I'm so glad you mentioned the 1031. In the back of my mind I was thinking that the 1031 would work for my own personal property. I knew better, but I needed reminding. 

Original intent of this property was not to cashflow immediately, but rather for long-term appreciation and to eventually cashflow. I'll certainly be tossing around these ideas and looking at the numbers and advantageous much more closely before deciding. Thanks for the great reminder and sage advice. 

@Patrick Britton Great points. I've absolutely been thinking about diversifying my investments into some stocks as well as real estate. I do not personally want to be landlording a bunch of properties over the long-haul, but rather will be using property management to do so. 

In regards to the value, I keep my eye on the market very closely and I also have a very savvy agent I work with. As you jokingly mentioned, Boise is nutty right now. I'm seeing very adequate comps (most of which are slightly smaller, have worse views or are in slightly worse conditions than mine) selling in the exact range that I'm talking about. 

Great feedback, much appreciated. 

Hi BP'ers! I purchased a home with the original intent of it being a long-term investment in October, 2020  in the Boise, ID area. We've seen insane gains in the past handful of months. My wife and I are in the process of building a new home for ourselves in the area as well (we're relocating from Southern California). Due to the insane market and the equity gains we're half thinking about selling the rental and then parceling those gains out to a) handle the down payment of our personal home and b) parcel out into other (potentially smaller) investments. I'm not sure what the best decision is at this point.

Here are a bit more details:

Bought the home in October, 2020. Purchase price: $410K. All-in investment: $31K 
Mortgage is $2000/mo
Rents for $2795/mo

Home could sell today for $530K
Potential growth in next few months - upward of $550-$570K
If I sold in the Summer I'd likely have a profit of $80-90K and get my original investment of $31K back. 

What would you do in this situation? Hold and keep renting? Sell and take the money to spread amongst personal and other investments? Thanks for taking the time to read this post and for any and all thoughts.

@Erik Stenbakken I really appreciate the feedback. Thank you so much for responding and for the additional insights about the changes in the market in 2020. I'll certainly be taking this into consideration as we review our numbers more closely. 

 Thanks so much! 

Hi BP folks! My wife and I are looking to purchase our 2nd deal ever! We purchased our first back in September 2020 and I'm so excited because my partner in life has finally "caught the RE bug!" We're looking at an off-market duplex that the owner is selling because they are in need of cash for their next purchase (they are wanting to upgrade and purchase a lot of land). They are claiming they receive very good income from one side of the property while the other side will cover the mortgage. 

I'm wondering if anyone who reads this might be able to steer me in the right direction to a tool or site that you believe is reliable and have utilized yourself that can assist by giving a relatively accurate idea of what the short-term rental should provide (i.e. vacancy rates, price points, etc.)? 

Thank you to all who view and those who respond in advance! 

@Michael Conrad I have to agree with what others have said on this thread. You've got to REALLY focus on the numbers and learn to crunch them yourself. If you need help crunching numbers, reach out to the BP community. Refinancing for rate and term pretty much makes zero sense here. My humble opinion is to work on getting your credit score to 740+ (could take as little as a few months to do this depending on what factors are involved that have you below 700). Then take a look at refinancing your property but this time a CASH OUT refinance to pull some of the money you invested out and put that money back to work for you in another investment. Hope this is helpful. Send me a private message if you want to talk numbers more in depth, I was a lender for 6 years and I'm a big math nerd. Best of luck.

Hey John, this is a great question. Here's the story... My wife and I wanted to purchase a property in the Boise, ID area to move into in about a year but rent for the time being. We found a fantastic place we could call home that would also rent well. We are Clear to Close at this point and signing final docs on the 24th (this Thursday). Our realtor was sharing our home with a small network of other agents (since we haven't closed yet we weren't planning to market it until then). We got 4-5 interested families and we started the pre-screening process with a couple of them, informing them of our situation. Not sure if you're aware, but the market is extremely hot in Boise and that goes for rentals as well. The feedback we were getting was that folks were willing to double the down or increase the monthly slightly to have a competitive edge against other prospective tenants. The one couple who went through the application process told me in advance their story and why they didn't have perfect credit and offered to pay significantly more than asking to get in. They seemed very honest but of course I couldn't trust their word alone. I did about as thorough of a check I could on them - background, credit, income verification, bank statements, referrals, previous 3 landlords... the works. Besides their actual credit scores they were perfect candidates. We decided to move forward with them at $500/mo over our original asking price.