All Forum Posts by: Brett Michael

Hey all, we decided to not go with it since their realtor was unresponsive and I wanted the purchase price to come down approx 20-30k. 

It should also be noted that this property is 100 years old and has had problems before- I kept on it since I was neighbors with the tenants who had been there for a year or 2. 

I feel like the layout is good with good bones perhaps, but the electrical system/plumbing would concern me. Not to mention what else the home inspector would uncover.

Investment property about 6.5% for a 30yr mortgage. 20% Downpayment.

Mortgage would be $1600. Downstairs rent could go from $1500-$1750. Upstairs (separate space with kitchen would rent for $500- as I already have someone lined up for it.

Purchase price about 230k. So, after closing costs I would need roughly 55k cash to bring to the table. 

Would like to know if this is even worth it? Thanks!

Should we sell our house we’ve been living in- currently worth 245k. We bought it for $182k about 4 years ago.

Rents are about 1800-1900 in the neighborhood. Middle class neighborhood to a T. Police, firefighters, mechanics, city workers, etc. Excellent school district with much construction happening now- neighborhoods are popping up left and right as well.

Our mortgage is about $1385. We just refinanced to a 2.125%, 15yr mortgage.

I’m leaning towards renting it out for about 2 years and then consider selling it since we wouldn’t have to pay capital gains on it.

Any thoughts on what we should do?

Possibly, have that family member give you the money is small increments. May not work if you're wanting to purchase the property relatively soon. If they give you the money all at once red flags will certainly be waiving..

@Chrissy Parsons thanks for the advice. I'll keep that in mind.

@Rob Cook thanks for the extensive response. I think where I am at now is mainly at the financing stage- not sure if I should do a cash-out refi on our investment SFR that we own outright. It's worth $100K, so essentially I'd be able to pull out 70% so around 70K and put that towards the down payment and closing costs of say two separate $40K SFR's which would equal 20K. I then would use additional funds for minor repairs/updates on the 2 properties. Then I could keep the 40K or so in my bank account as a security blanket. I want to find a financing option about 5% for my cashout refi on our current paid off property. So, then I would have 4 mortgages. 1 cash-out refi, and 2 new investment properties, and our primary residence. For lack of a better phrase- that may be too much going on..or i could use the cash-out refi funds to make cash offers on the wo rental properties. Tough call. Again, any advice would be appreciated. Thanks.

@Rob Cook- It's a SFR near the College. Sorry for that.

     We own a college campus that's paid for and wanting to get another in a different part of town. It's overwhelming trying to gain as much knowledge as possible. I find myself going down rabbit holes searching for information..a discussion leads to a thread ends up into post after post..and I'm so deep into one particular subject it can be frustrating.  

I see duplexes for sale for $35K where a mom lives in one side and the daughter lives in the other side where they've been long term tenants- in return I'm thinking what a perfect scenario. Rent is $350+ each side. So my next question- what are we looking like as far as repairs are concerned; I feel like they can't be too bad if people are living in the place on top of paying rent (supposedly).  Next question- why hasn't the property sold if I think it's a solid deal. Next question- how can I pull the money out of our property to put towards 1-2 more to create more cashflow. 

How many low-ball offers should I submit trying to find a desperate seller so we can get the best deal possible? What's our best financing option with lowest interest rate having a paid off rental? If I purchase 2 houses at the same time- can it be one payment/mortgage, with a low 5% rate with excellent credit? Hard to get the answers. Everyone says something different..

@Ali Boone thanks for the advice. Oh, and I came to find out through just the flow of conversation that Grandmaw wouldn't be as displeased as we had thought, which is always a good thing!

What do you think the rates would be on a cash-out refi? Someone recommended a personal line of credit- so, I then called our bank and they estimated it'd be 9-13% interest rate. Would that be our best option, the cash-out refi? I just want something about 5-6%, 30 year- conventional. Seems pretty difficult trying to find good terms with the financing.I have great credit too. Any insight again would be great! 

   We have a rental property valued at around $110K that is paid for being rented an 1K each month. 

It's been in the family for decades so there is some emotional attachment (especially for the 94 year old grandmaw if she knew we were to sell it!). 

I was thinking if we were to sell the property and pocket around 90K then we could use leverage/have money for Down payments and buy a couple properties, start off slow, and build from there. Any thoughts /advice/help would be greatly appreciated!