All Forum Posts by: Brett Chemaly

I have my current primary residence up for sale but the market is slow with no offers yet. At the same time,the rental market is strong.

I’ve built up about 400k of equity with a loan balance of approx $350k outstanding. I’ve found our next home but my understanding is that I can’t do a cash out refi to buy another primary residence unless I convert my existing loan to an investment loan, is this correct ?

if I want to keep my existing home as a rental but use the equity to put down a decent deposit on the new house, is my only option to tap my HELOC ?

Thanks

@Luke Peake https://wolfstreet.com/2018/11/27/the-most-splendid-housing-bubbles-in-america-deflate/

@Luke Peake Just wait a year. Those properties around you will be 20% cheaper 😉

@Ken Breeze Great post Ken. I’m bullish on Phoenix as well although some might disagree on the weather, especially in July 😏

@Holly Birchall Holly , what were your dates for purchase and sale ?

@Nicole Ashey Bought a SFH with a friend who lived in it for about 6 months, then decided to move country. House was C class and we made the cardinal sin of RE investing by buying in a poor location. Situation went from bad to worse after that. Tenant stopped paying rent after a year. PM stopped doing his job and went radio silent on us. Took another 8 months to evict and then once evicted the house was broken into and vandalized extensively ( they even ripped the hot water system out) pretty sure it was the previous tenant. Anyway, Walked away from the property as it was In such bad shape. Lesson learnt 1) don’t buy a property with a friend on a handshake 2 ) location location location

@Collin Schwartz Great story, thanks for sharing . Atlas Shrugged... now there’s a book you won’t find mentioned on BP much. Actually my favorite fiction book of all time.... Ayn Rand is timeless ! Can you share what class of properties you invest in ? Thanks

@Oliver Petkovski Define crash ? If you think it’s going to be another 08 again it’s not going to happen anytime soon. Might be a correction but nothing like the 08 hundred year storm

@Ken Scarbrough Crashes rent to happen every ten years or so. I believe a ‘crash’is when you have a 20 -30% drop. What happened in 2008 was well... much much worse. These happen much less frequently so IMO I don’t think we’ll see something like the 2008 apocalypse for a long time to come. That said, I’d echo what others have said. Make sure you’re not spread too thinly, have ample cash reserves and make sure your rents are in line with comps in the area. If we go through a down cycle you may need to drop rents to keep/attract quality tenants.

Came across this article which i thought i'd share with the AZ community. Also saw that Blackstone group has been on a buying spree in the valley, picking up 6 apartment complexes for a grand total of $311 million. Difficult to compete against that type of capital hey.  Hope they leave the duplex's and triplexes alone :)

https://www.azcentral.com/story/money/business/job...