All Forum Posts by: Brent Davis

I have thrown out some lines to a few different people.  We will see what they say.  Hopefully I can get something done to move away from these balloons.  Unfortunately the majority of my properties are balloons.  My banker basically told me that was the only option.  

Judging by appraisal values/my view of the market I'd say I have around 722k in equity.  That is including my own personal residence.  I have about 120k in equity on it.  

I did speak with a mortgage broker today briefly.  We didn't go over specifics.  He did say that debt to income could be the "killer."  He also said Fannie and Freddie limit to 10 properties.  

I haven't asked about a thirty year fixed for a super long time.  I think the reason they gave me was I wouldn't qualify because of my debt to income.  I'm certainly open to revisit any and all options.  That is why I am here.  Thanks again.

So would a cash out refi be the best option to use that equity?  Sorry if these questions are stupid.  I want to be prepared and knowledgeable when I approach the bank.  

@Nuhan:  Can you explain where you are coming up with 270 per month cash flow on property one?  It is bringing in 1300 per month.  Taxes and insurance are around 200 per month.  My payment is 427.  That brings me to 627.  What other figures are you using to come up with 270?  Vancancy? Repairs?  Just curious what percentages you used for those additional expenses.  THanks 

Thanks for the replies.  My end goal is to retire early.  I have 14 years in teaching.  I'd like to be able to retire at 50 and be very comfortable.  I enjoy the rental properties.  I have no desire to get out of the game by selling.  I also am not real concerned with making money right now. (cash flow)  However, I think I probably do need to get some more cash coming in to keep my reserves funded.  I am currently 39.  I'd like to continue to purchase properties but only if the right deals come along.  I enjoy having projects during my summers off.  

Thanks for the replies everyone!  I hope I didn't sound like I was giving a "sob story."  I love investing in real estate.  I do most of the rehabs myself.  Being a school teacher I have summers to do big projects.  My wife is also a teacher.  Our combined income excluding rentals is about 120k.  

I would love to exchange sfh for multi.  I do own two duplexes and a five plex.  They make crazy good cash flow.  However, my niche is a really small town of appx 3500 people.  There just aren't a lot of multi units.  I really like all my properties right here.  Being a teacher I have great relationships with many people in the town and it gives me an edge for knowing tenants, etc.  

Any time I've mentioned getting into a fixed mortgage my lender has always acted like it isn't possible.  I do have a 30 year fixed note on one of my duplexes.  ,

Here are a couple of my properties I've randomly picked:

Property 1

20 year old duplex.

I owe 61,000   

taxes appx 1800 

650 per month per side

I'd say the property is probably worth 115,000

I believe payment is 427 per month.

(property 2)

SFH (purchased this year)

purchase price 10,000

rehab amount appx 40,000

I owe 48,000

3 bedroom 1 bath  

750 per month rent

taxes  1700

appraisal value 90,000  (doubt I could realistically sell for that)

I do understand balloon payments but what specifically do you mean by "how I will handle the balloon payments."  I've always just refinanced them when they come due.  I'd like to have conventional loans and spread amortization out further but I also like seeing how much my principal drops on the short term amortizations.  

I'm fairly new to this forum.  I poked around on here a few years ago.  I currently have over 20 units.  I'm a school teacher also.  I have been doing this for about 15+ years.  Does anyone have advice on who to talk to to look over my numbers/portfolio?  I've basically self taught myself everything.  I've kept above water for 15 years so I'm not failing.  However, it is always a sort of uncomfortable thing to share what I am doing as far as finances with people.  Basically my properties are mostly all short term notes now.  5, 10, and some 15 year notes.  They are all balloons.  They do cash flow.  However, I feel broke at the end of each month.  Lol.  I have a huge amount of equity in my properties.  THey are all in top notch shape and I have amazing tenants.  However, I constantly stress about the amount of debt I have compared to my income.  I'd love for someone to be able to look over my stuff or advice on how to do that.  I'm thinking of taking things to the next level and using some of my equity to acquire more units.  However, my amount of debt keeps me second guessing.  Any advice is appreciated..