All Forum Posts by: Alex Silang

@Jody Sperling I've never heard of a HELOC sweep. That's pretty cool.

If you don't mind me asking, does that mean no 401k/IRA/pension. 100% rentals?

I've heard of people retiring on real estate. They just have a bunch of rentals. 

Would you be willing to do that? Maybe have a decent sized pool of cash to take care of the occasional roof repair or personal expense, but almost entirely in real estate?

Or is RE just a supplement?

I often makes sense to cashout refi and buy again. But what makes this different is:

1) I consider myself semi-retired. Cashflow is important to me
2) I work part time so I don't have the income to get a conventional loan and my rates are higher. The quotes I've gotten have been from 4.75 (with 2 points) to 5.75)

My property is a triplex. 4000 rent, 850 mortgage, 1500 Net Operating Income. A full cash out might get me 150-160k after fees and take down NOI to $600/mo. My property is worth 450k, and current mortgage is 155k.

My plan would then be to buy a duplex or another triplex (which might take some savings but I'm pretty close). 

Thoughts are that if I could get to two triplexes that are roughly the same, that would be $1200/mo. I would benefit from 2x appreciation and 2x rent increases. Rent increases have been great over the past 5 years, going from 900 to 1350. Also, it'd be nice to spread the risk on twice as many units.

OTOH, I don't want to get stretched too thin cash-wise. An interesting alternative is to simply pay my mortgage off early. That will bump up my income by $850/mo.

Thoughts?

I'm purchasing an additional property, not selling. 

I'm really thinking about using my manager as my real estate agent. He has a lot of experience (5+) year managing. Plus he's by far the best manager I've had, I want to reward him with a nice commission.

However...

He told me he's only buy/sold 5-6 transactions. He said he could get more help under his broker.

Do you think it would be foolish for me to use him? Once again, he has a lot of experience managing in the area so I'd expect he'd know what to look for. But maybe with things like negotiation he'd need some insight, which his broker can provide

Your thoughts are appreciated.

Tim, I've read the complete opposite. Are you sure?

I know Finance America and Visio Lending (two big asset based lenders) are both full-recourse providers. This is a shame as Visio has a very attractive rate. Does anyone know of any non-recourse asset-based loan providers?

Thanks, I don't think I'll qualify though because my income is self employed. 

I'm a self employed writer. It's going to be 2 years or so until I can use my income to qualify for a mortgage.

I was hoping to cashout refi on my triplex, which is doing very healthy. 

Question is, what are the draw backs?

* Higher Interest rate 

* Lower LTV

* Need to refinance every few years? Interest rate risk

Anything else you can think of? I mean, when I finally qualify down the line with self employed income I can always refinance again with a conventional mortgage.

Thank you.  

I doubt COVID will be over in 30 days.It took China at least 3 months, and they were able to take actions that would be politically impossible here.