All Forum Posts by: Brendan Miller

@Ivy Liu I would probably do the cash out refi on property #1 for $200k and the property #2 for $400k and then you can use that as a down payment on a cash flowing property (or multiple) in the Midwest at a 10% CoC return to net you the income you're looking for. You need to focus on cashflow markets which is why the Midwest would be good.

@Neeraj Agrawal I normally just use Zillow to look at available properties. If it interests me, then I check rents with Rentometer, and if rents check then I run full numbers through the BP calculator

@Ishmeal Ivory you’d need to look at the fine print within the first property’s mortgage docs, normally you have to live in the property for at least one year as your primary residence. After that then you could get a new primary mortgage loan. You’d have been better off not having the first home in both your names, rather just one and the other property in the other’s name.

@Ronald Allen Barney thanks for the input, these are for investment properties and I always follow them on Zillow until they close (to see the close price), but I was curious if it was worth a checkin with the listing agent after the contingency periods expire to make sure they were on track for closing. My thought is that it can’t hurt, especially since I’m only making a few offers per month

@Justin Manges I just budget 5% for CapEx and 5% for maintenance, but I also look at 1980+ homes. Older homes require more. If you wanted to get more detailed you could do a CapEx projection by itemizing all of the CapEx items (roof, AC, water heater, etc) and the replacement budget and the expected life duration based on the current age which would tell you roughly what monthly budget you'd need to account for

@Brandon Carrillo you have 3 more years to either keep it as a primary or rent it out and hopefully let it appreciate a little more, at 5 years you could reassess sell vs keep. If you needed access to the equity you could refinance it or do a HELOC. I recently did this either one of my properties, bought in 2016, lived in it for 2 yrs and then rented out for 3 yrs and just sold this past month. I was fortunate that it appreciated heavily in the last 3 yrs, while still getting the benefits of loan pay down, and the tax benefits

@Ben Flaskrud get started and don’t wait. Yes it’s a hot market and prices are high, but interest rates are the lowest they’ve ever been. Focus on properties that cashflow, and you’ll be OK through any market cycle. It really depends on your long term goals; if you’re looking to buy and hold, then buy now and hold the property through the next cycle. If you’re looking to get into house flipping right now, then that might be a different level of risk (IMO)

Definitely a scam, good for you to recognize that. There are people out there that are taking advantage of the hot market and they know people will likely do things like that to get an edge on a deal. I could tell right away, $160k single family homes don’t exist in AZ, at least not in the Phoenix area! I would recommend reporting to Zillow also so they can take the listing down.

@Guillermo Oyola I agree with Tim's comments. Vacancy is really low, I normally use 5% but it really depends on your market. You're missing maintenance and CapEx, I use 5% for each but it depends on the age of your property. I think PM is OK at 10%, since it varies by market. I know markets where 10% is normal. My current properties are 7%

@David Johnson I just used PenFed on my primary and a rental and was happy with it