All Forum Posts by: Mike Bargetto

@Mike Musarra if you’re looking for options feel free to shoot me a DM. Like other comments suggest, you may be able to secure long term debt sooner but if for whatever reason that is not the case feel free to connect with me. Thanks.

@Arianna Farinas primary residence in Miami is what I would do (I don’t know your full financial situation). Owning Midwest RE is tough, I know this first hand. Miami is a great market for house hacking. DM me if you would like more of my opinion. Happy to discuss further.

@Katherine Roberts this is only difficult for you because it’s your first purchase. Walk and be done with it. Great learning experience.

@Jason Coleman

I would just focus on increasing overall net worth/cash flow instead of paying down what is likely very cheap money-especially when you’re likely to borrow it again in the future. This will decrease the overall burden of your debt. The current interest rate environment’s impact on HELOCs will offset any potential benefit very quickly. I think it’ll cost you more in the end.

In the meantime consider just storing your cash in a vehicle that offers a stable/consistent ROR.

You're more than welcome. I am super glad we did this because it increased the velocity of our money. Our goal is to own rentals, and we do own rentals, but we pick some off here and there that have appreciated to then create other opportunities with otherwise locked up equity. I think this strategy has assisted in our growth. Best of luck and keep us posted. 

Mike

Hi Jamie, 

First off, congrats on your early success in REI. I thought I would chime in with advice that I took when I owned just a few rentals. In the beginning we sold off a few properties that appreciated quite a bit. This compounded our seed money a lot faster than not selling. Selling off assets that have appreciated/have lots of equity generates a lot of cash in your pocket that you as the investor gets to redeploy in maybe even better ways. Increasing your liquid net worth in the beginning allow you to grow much faster. Extrapolate this out 5 times, 10..15 times. How much capital would you have to go take down more units? From what you stated in your post doing a refinance would increase your new mortgage wiping out most/all of your current cashflow. That is not sustainable especially with big cap ex coming up like the roof that needs replacement. Consider selling off a few rentals if there is enough equity to roll it into the next deal for quick and early momentum. Best of luck with either route that you choose.

We own a few units in this area and we have never had an issue with crime. We are open to selling some of our units in Columbia so if you are interested please let me know. 

 He sure does. I just checked in with him and he’s happy to talk with you, John, or whoever is making the decision. I’ll DM you his contact info. Thanks for reaching out. 

@Luis Garcia, did you find anybody to manage your Charleston assets? I highly recommend reaching out to Brantley Jaco at Bridgepoint Property Management. We've worked with him for a few years now and he's fantastic. 

@Dawn Holley if you’re looking to build long term wealth I would encourage building your portfolio with long term out of state rentals. Why? The cash flow can be steady and, well, it may very well just be cleaner in this scenario because you don’t currently own the Santa Cruz property. Also, buying rentals can be more passive relative to building out a garage. Lastly, it’s great having a neighbor come over to borrow a cup of sugar or an egg but I don’t want one of my tenants doing that let alone knowing who I am or where I live. Merry Christmas!