All Forum Posts by: Brad Hunton

 No, that wasn't one if the ones we were looking at. I just didn't have the budget for the rehab as well. The area is a great one though and being so close to the metroplex I believe it will continue to appreciate even if the nationwide market takes a downturn.

I am continuing to buy as great deals come up. Closed on a duplex last week and have three more SFH under contract. This will give me 10 conventional mortgages at fairly low rates for 30 years. Appreciation is moderate and cash flow is good. A decent hedge against all this crazy inflation. I do wish it was possible to do this 2 years ago when rates were really low but better late than never.

@Dave Foster

Thank you for the advice. Unfortunately, I do not have enough equity to do that. I would be able to pull enough cash out through a refi on two properties to purchase these three particular ones with 20% down or close to the same amount from selling the one to do the 1031 exchange. Either way I am at max leverage.

@Nicole Heasley

If I just sold the property I would 1031 exchange into the new ones and my cash flow would increase about $1,100/month. If I cashed out and refinanced the two properties and bought the three new ones my cash flow would go up about $1,300. So basically, is $200 a month worth the extra leverage and about $13,000 in closing costs added added to my mortgages?

I have the opportunity to buy three good cash flowing properties in a stable, steady growth area.

My question is should I sell one of my rentals that has been a pain but has all the bugs worked or should I cash out refi this and another property and buy the three new ones.

I did refi these two when rates were really low (3.1% and 3.3%) but never took equity out. Cash flow and equity would take a hit if I refinanced now but I would still come out way ahead on the purchase of the three new ones.

What would some of the more experienced investors do in my position?

@Luciano A.

I can, and have been playing the long game but as I get older I am starting to believe that I am far behind where I want to be. I'm trying to make up for lost time so to speak and just trying to meet my goal of passive income in 5 years instead of the 15 years it is currently taking. Thank you for the advice and encouragement.

@John Morgan

Thank you. Will definitely look into tapping equity to increase doors and cash flow.

@Jonathan Greene

I have been looking to branch out into multi-family units to increase my returns. I have a line on a duplex but due to DTI ratio will need to wait until taxes are filed next year to open up some options. I showed a big loss thanks to a total remodel of a unit due to bad tenants and basically vandalism.

@Danielle Jackson

I will definitely look into doing a cash out refinance. Thank you for the advice and for opening my eyes to other possibilities. I tend to get tunnel vision and forget to look at the big picture.

I did forget to mention that all of the properties are on 15 year mortgages so the cash flow is lower than it could be.

I self manage 3 and have a local manager for the other 2  (Long distance investing). 

Between all the properties I have $180,000-$200,000 in equity but I am reluctant to refinance again.

I have thought of syndication investing but all of my focus has been in this specific niche which might not have been the best decision.