All Forum Posts by: Account Closed

Thanks all for the feedback.  My goals are to build up a manageable portfolio over the next 10 years which would allow me to cash flow enough to stop working to pursue other projects and interests (startups, etc.)  So with that in mind agree that having the cash on hand is probably the better move and provides more options moving forward - I just saw the amount I could save on monthly interest payments and got excited, however you can't look at investments in just that manner.

My situation is a bit of a unique one as I live in Japan and am speaking with local banks in the greater Boston area (where I'm from and often back to visit) for a building in California - thus the low LTV offers. Going to speak to a couple more co-op banks tomorrow and see if I can get someone to pick up the entire remaining loan amount; otherwise 5% amortized over 15 for an investment property isn't terrible financing. The place is a 6 unit and with current financing cash flowing positive when full, break even if 1 unit vacant.

Refinancing question for the BP community.

I currently have roughly $197k remaining on a seller finance loan for a recently purchased $300k property in Bakersfield, CA, at 5% amortized over 15 years (but I need to pay off the remaining principal balance at the 8 year mark).  I've been speaking to a local bank in the Boston area (where I'm originally from) and they've agreed to loan me $100k at 3.07% over 10 years for a refinance.

My question is, do people think it's worth a refinance to a much lower rate if I have to put down roughly $97k?  Have to consider this payment is in addition to my initial down payment when I purchased a few months back, and would eat up most of my available cash at the moment.  Pros would be higher cash flow, paying off the loan quicker, and significantly lower monthly interest payments; cons would be less capital to spend on possible future projects in the short term.  There are obviously a lot of other factors in play here, but taking the above scenario in a vacuum, and given the current market and financing options, etc., I'd be interested to hear people's opinions.

@Matthew Pinkston welcome to Japan!  I've been living here for 11 years working as a programmer myself and own 3 Japan properties, and am actively looking to expand.  A lot of the questions you posted here I or my group of real estate investor friends in Tokyo have gone through myself, for example hidden costs, issues with evictions, how property management companies in Japan make their money, etc. and would be happy to share what I've learned and also a lot of good contacts in the business I've met over the years.

I live in downtown Tokyo, happy to meet up sometime either here or there (I'm down in Yokohama often on the weekends) and share information and experiences - fire me a private message if you're interested.

Also, I'm guessing that the seminar in Roppongi was with Pacific Asset Management?