All Forum Posts by: Aaron Boatman

I welcome other opinions and criticism when I make a move so here we go.  My current move is take cash out against a property I own outright so I have buying power hunting for my 3rd this Fall.    

Details on refi: Zillow value $200,000, Condo, Cash Out LTV 60/40 gives me $120K @ 3.5% 30years, P/I = $490ish. Property makes about $2-2300/month gross consistently over the past year on airbnb. With this refi my payment will be about $1000/month with utilities. Credit 790.

Trying to use this BRRR method
History: I'm a full-time W2 guy who has started over the past 4 years buying investment rentals at auction or in a depressed state, rehabbing them and putting them on Airbnb.  Ive had success buying them with cash and negotiating a below market deal.  I had 3, sold 1 over the past year that was more work than pleasure. The remaining (2) of my rentals are currently Airbnb's that I own outright.    

Im happy with the goal of buying 1 property every year or so.  Goal is to have 8-10 when I retire, that I can manage and maintain in addition to my retirement.

I have a rental in Arizona that is Zillow valued at $340,000, my estimate sale is $329,900. Its been a rental for the 6 or so years and has about $34,000 in recapture. I paid $165,000 for it, owe $100,000.  My W-2 income is $50,000/year.

Id really like to take the money and move it into something I can pay cash for.  Waiting to reinvest in a depressed purchase or dip buy.

How can I be savvy with the profit, minimize my capital gains, put the most $$$ in my bank.

Thanks for the help.

Here is some background. I want to purchase a property, rehab it then do a cash out refi for 80%LTV which will easily pay off all debts and myself back. When working my ROI Math how does one factor a cash out refi in to the mix, because in my eyes by the time it goes through (6months) I will have a loan on the property with essentially zero out of pocket as I put my own money back.

Please tell me where I am wrong and correct this newbie.

Purchase price $40K
Own money $10K
Private money $30K
Rehab plus fees and interest $6K
Appraised at 80K
Refi for 50K create bank with reserves and pay everyone including self back. :)
Rent $725/month @ 100% occupancy
Taxes 2000/year
Total Mortgage $500

Rate of return = ???

Aaron Boatman - [email protected] 928 208 8728

I have discussed private lending with one individual and it seems to be a great lead. Up to 70% LTV. 8% on 50k for 12months interest only, ballon at end. No penalty for early payoff. How do these terms look?

So i've worked myself in to a bit of a hole.  Or maybe not?  

Decided to take a year off and take on the role of daddy daycare. I left my W-2 employment behind and didn't secure a LOC or Cash Equity Refi in my properties before I left. I "was" set that I wouldn't mess around with real estate for a year. Then I came across an area where I'd like to purchase and found an auction home for sale. Looking for ways to come up with cash fast. Looking for approximately 80K, I return to work in Mid May and so within 2-3 months refi, LOC should be no issue.

Advice?

So here we go:

I have two properties that I own (mortgage), in two different states.  I bought these homes strictly out of the amenities they gave me as an occupant and at the time I never considered being a rental real estate investor.  Fast forward past a few popular books, hundred podcast i find myself asking if I should sell these and reinvest the money with some strategy behind it (never did this in the beginning).

Property ONE:

Market Value $365,000
Owe $285,000
Mortgage is 30yr fixed 4.18% $1468/month
HOA is $150
Rent is $1875/month 1 year contract

What is nice about this property is I play property manager and the HOA really takes care of everything. I am stretched out with this house and don't think ill be able to get much more than maybe $1900/month right now.

Should I sell it, keep it, thoughts?

Property TWO:

Market Value $210,000
Owe $130,000
Mortgage is 30yr fixed 3.75% $880/month
Bought this with 5% down PMI falls off next year savings of $80/month
Rent is $975/month 3 year contract 

Rent is really saturated in this area and I found an elderly couple and this property is across the street from the sons house how basically does 100% of the maintenance on the property.

Should I sell it, keep it thoughts?

My gut tells me that I have some capital in either of these home that I could reinvest in a "better" rental market.  Please remember I bought these with no thoughts of ever renting them out so please forgive me I was young and new.

Hello,

My name is Aaron and Ive been a firefighter for the past 11 years. Ive been overly diligent in doing all the typical forms of investing they tell you 457, IRA's, pension and buy a house. Luckily I've always bought homes where I figured if **** hit the fan I could probably rent it and cover my mortgage. I never put any further business thought in to my home purchases.

I decided to leave the Fire Service and be a stay at home parent, and let my wife go back to work.  It actually made financial sense!!  She is a travel nurse, her agency covers housing, travel and pays better than I made as Colorado Fireman.  We rented our homes in Arizona and Colorado and are putting a few bucks in our pocket every month.  

An alarm went off in my head saying your getting paid to let people live in your house....hmmmm.  Maybe you could actually put some business sense in to this and do this for a career change.  So insert books, blogs and podcast and I'm hooked that my next career will be in rental property.