All Forum Posts by: Ben D.

Good thoughts, thanks, everybody. Leonard, I agree with you and I do not want to be kicking myself 15-20 years down the road for getting rid of a property that would be rewarding me greatly if I had just kept it. Ali, I like your idea and have looked into HELOC's. on this property. I could probable do better if I received something like a "basket" HELOC on my 2 rentals and 1 primary, if there were such a thing. Additionally, I suspected that it may be difficult to cashflow this way considering the additional HELOC payment. I guess I would just need to find a great deal on a rental property. Any suggestions on who to go to for a good HELOC - Can I actually get a near 95% LTV HELOC to get that kind of cash out of it?

Thanks guys for your replies.  I appreciate your perspective.  I agree with the forecasts for my area here, and realize that keeping it would be wise.  I just like to compare the longer term outcome of 1 400k Fontana house renting at $2100/month to 3 Dallas houses total value of 400k renting for total of say $3600/month.   

Thanks for your response, Bill.  I guess I should also mention that this Fontana property was my prior residence and is near to me, so I can manage it.   I bought it in 2002 for 243k and have always considered the possibility of moving back into it and taking the gain on my my newer primary residence tax-free.  So it has more value to me than a pure appreciation play.  However, I am finding it somewhat unlikely that I will downsize my family of 8 into that relatively smaller house, and am open to cashing out.  it would be nice to get about 1k/month total cashflow from 3-4 houses out of state.  I would just need to find the right opportunity.

I have a SFR rental property in Fontana, CA that is worth 390k and I owe 255k. I am 1 year into a 20 year mortgage and have had same renters for 6 years no problems. I am not cashflowing, but obviously trying to pay down principal. I have entertained the idea of selling, doing a 1031 and find multiple properties out of state that will provide some cashflow and potential appreciation. I also currently have one SFR rental in San Antonio that is cashflowing 250/month with a 20 year mortgage. I have looked at Dallas, San Antonio, Indy, Florida, etc.

Obviously, I could leverage into many more rental homes in a variety of markets, but I am a part-time investor and doubt my ability to find great deals in out-of-state markets, especially under the time constraints of a 1031.  I would probably be looking at turnkey solutions, or using my property manager / realtor in San Antonio, who has served me well.

I am most interested in hearing opinions about the benefits of holding my current position longer / forever versus exchanging for cheaper multiple units in another market with less potential appreciation (Cashflow vs. Capital appreciation).  I know it is an individual investor's preference, but hearing others' ideas on what I could do with a 1031 would help me process various potential investment scenarios.

Thanks