All Forum Posts by: Alex Silang

@JD Martin Right. But I’m usually buy and hold. My main property cash flows pretty well. I wouldn’t sell and just wait it out. 

The thing is with a fix and flip loan is that the term 12-18 months. It’d be interest only so I might even cash flow. I’d be fine kicking the can down the road but it looks like the company wouldn’t allow me to do that.

So I’m eyeing a property and I’m really thinking about a fix and flip loan.

I’m just really concerned about the market risk. For example, if there was something like a global pandemic or credit market crash, I might not be able to get a refinance loan. That’d force me to sell the property early (my specialty lender that I use only has a 12-18 month term). That’d force me to sell the property, and there’s a good chance that the RE market would be crashing at this time.

I know the chances of this is slight, but I’d love to hear your comments on this.

I’m in an exciting period in my life. I finally have enough capital to purchase another investment property.

In the past, I was extremely passive. I let the realtor do everything and sometimes I feel they didn’t do a good job. I have a new realtor now.

Would you recommend taking a negotiation class? Where? 

Or would reading some BP posts be enough.

Thanks!

I often see this as a nono. Of course, tons of people like to use their cashout refinance money for a new car or a big home renovation.

What about using cashout refi money to pay for everyday living expenses? You'd have other income and let's say it wouldn't be anything extravagant. But could you count on it? I've seen recommendations to refinance every 5 years. 

What are your thoughts on this?

Not counting COVID of course. 

Does anyone have a story of cutting it close? I've been fairly lucky myself. My expenses and vacancies are spread throughout the years. 

I don't want to get cocky though. 

Thanks!

I'm just concerned my six months worth of reserve will be enough. RE as a community we always talk about the wins. That's important. But I'm just wondering how RE performs during recessions. What happens when unemployment rises a high amount? 

I was asking a manager in a meetup and he actually said tenant quality increased because a lot of people who were foreclosed on were now renters. Not trying to sound happy at others misfortune, just stating a data point to get the conversation started.

It's commonly recommended to have six months of PITI for reserves. I was wondering what your experience is with this. Would be great to here from some RE veterans with decades experience and a recession or two under their belt.

I was talking to my friend earlier today. I can either buy 1 or 2 properties with my cashout refi money. I'm concerned that if I get 2 properties, I'll be too overweight on real estate. It'd be like 80+% of my total investment portfolio. 

I was wondering what other people are doing.

Thanks

What do you think? Interest rates are very low right now. However, the newspapers are saying that it's almost guaranteed the Fed is going to raise rates next year. That could cause a decline in prices. 

If you buy now, you might get a decline in value in the short to medium term. You might not be able to do a decent cashout-refi for awhile. A couple years in the line, you might be in the red. That means you're subsisting on rental profits, which probably aren't great right now due to a run up in prices in many areas. 

Just curious to hear everyone's thoughts. 

I'm sure many have done this. I'm curious to hear some stories. Also, do you think a regular loan is best/ Shares? a combination? What interest rate is fair? Thanks!