All Forum Posts by: Brent Davis

thanks for the reply Tonya.  My wife and I are both teachers. Hopefully TRS will be there. I’m enjoying my job at this point. I really don’t see myself traveling. I love working on the properties. I would jump into more rehabs if I quit teaching. I have the ability to do 90% of anything in the construction field. 

We could not live off our cash flow of our rentals at our current living standard. We both have w2 jobs. I’m hoping to retire early at at some point. I’m 38.

Sorry for the confusion.  They are talking like the cost of the refinance will be that much.  I'm able to pull over 200 grand.  

Update:  So I took the advice here and I am getting all of my properties refinanced on 30 year fixed.  It has been quite a process.  I'm pulling all equity that I can out of the properties to use to purchase more properties.  I'm a bit stressed on the cost of this refi. (I don't have a firm number yet but it sounds like between 15-20k.)I'm also going against my grain  and pushing all these notes to 30 year.  I hope I am making the right decision here.  My cash flow will improve a lot.  However, I feel like a weight is on my by extending the loans out!  

I’m currently restructuring all my mortgages and could possibly purchase a 4 plex here in my town. The asking price is 175000. Currently rents at 500 per. It should be closer to 600. Taxes are 4000. Any insight?

Update: I’m currently on my way to refinancing everything on 30 year. Hoping it goes through. Biggest obstacle is showing enough cash reserves.

So I have a five plex bringing in 2400 per month.  Expenses are appx. 1100-1300 total.  So I'm making around 1000 per month.  I stretch it out to a 30 year and I make a few hundred more but it is not paying itself off very quickly.  I understand the math.  However, it seems counterproductive.  Maybe I've just been listening to Dave Ramsey too much!

Here is my situation. I have around 22 units. Appx 650-700 k in equity. Most of my mortgages are 10-12 year balloons. Small town bank. I’m getting ready to meet with my banker Friday about moving stuff around. I know I need to look into something besides balloons. I know many also think I should be doing 30 year notes. My main question is does anyone have recommendations on helping me generate a larger cash reserve? I do cash flow. It pains me to look ok at stretching them out to 30 year with looking at what goes to principal.

Alright, I have a meeting with our local bank Friday.  I've been going round and round about what I am trying to accomplish.  I know everyone is saying go to 30 year ammortizations.  However, when I crunch my numbers and look at what is happening to my principal when I switch from 10 year to 30 year it really sucks.  I'm also not sure what he is going to offer.  I know everyone says to get out of the balloons and into a fixed 30 year.  Maybe I should take a couple of properties and do that to start with to generate some more income.  One thing I am lacking is good reserves.  Maybe bumping a few to create some more cash flow might be smart to start?  

Well stated Thomas.  I think you make great points.