All Forum Posts by: Brian Christel

 Either another live-in-flip or a brrrr project. 

Chase Slate had 0% interest on balance transfers and no balance transfer fees for 15 months when I signed up last year.

 Great point, Thomas.

There's about 60k equity in it right now and my mortgage rate is 3.8%

I hate the thought of having that much equity tied up in it so it would be great to pull some out.

Cash-out Refi sounds good but my rate would also jump up.

 - Small price to pay to have access to the equity.

But a HELOC seems like a no-brainer, just as a safety net.

Thanks Jonathan.

From what I can tell, even with a refi and leaving conservative equity in the property it would still cashflow.

I still have some topics like depreciation to research.

It's time to make the decision to sell or rent out my condo.

I plan on relocating in the next few months and my two options are:

1. Sell 

2. Rent it out (refi or heloc)

Bought Aug 2017:   128500

Renovations:           6000

Appraised in 2018: 185000

Overhead: 1350/month (Mortgage, ins, tax, HOA)

Potential Rent:         1700-1800/month

There are plans in the next few months to break ground on a new high-rise fifteen feet from the balcony of my unit which would completely block my view, a HUGE selling point for my building.

The new building next door will be a high end hotel with nice restaurants on the first floor so long-term it would be good for the area. 

Ideally I would rent out my condo, pull out the equity, and buy more real estate. But given the future development right next door I'm not sure if it would be better to sell (take the money and run) or rent it out (pull out the equity to buy more real estate, cashflow a few hundred/month, and hope the building next door doesn't drop the value of my condo). 

Any thoughts on the best course of action would be greatly appreciated!

Wow it sounds like you're situation is working out very well. We'll definitely have to stay in touch to see how both of our strategies play out.

I'm focusing mainly on COC and NOI>CAP as it's a fairly simple metric. I would love to evaluate under the 2% rule but it seems those deals are found far less frequently in today's market.

@Garrath Robinson @ Redgy Saint-Germain @ Dave Foster
I really appreciate the valuable insight!

Bought: $129K

Interest Rate: 3.6%

Down Payment:~$5k

Current (based off comps): ~$165k

ARV: possibly $180k

Given that it's my primary residence would it make sense to:

Renovate, HELOC, put a renter in it, then 1031 it into two other properties after the renter has been in it for a year? (Dave I may is this what you meant by "most folks feel good at a year"?)

I would love to use the BRRRR method to acquire more properties so ideally I could use my HELOC, in combination with hard money or private money to fund a BRRRR project then refi into a traditional mortgage/investment structured loan, pull out some equity and repeat.

Hi everyone,

Finally getting around to my new member introduction and have a quick question for the members. 

I bought my primary residence off market last August (condo in a highrise) for 128k. Comps are selling for 160k-165k and around 175k with an updated kitchen. Ideally I'd like to put a renter in it - as it is it would net around $200-$250 per month but closer to $400 if/when I spend a few grand on basic renovations (counter top, knock down small section of wall in kitchen, re-tile bathroom. The area of town is seeing a TON of development (two 15-20 story office buildings two blocks away, 30 story residential upscale highrise with the cheapest units selling over 1mill, new four star hotel breaking ground in six months right next door and lots of highend dining and retail moving into the area. Future appreciation is what is making my decision difficult.

My questions are: 

1. What is the best way to access this equity to begin funding more investment properties, given my situation?

2. I'm planning on spending around $3k on basic renovations. I'd probably put it on a credit card then use an option below to pay it off. Should I just eat the renovation costs, have the renter pay it off, or is cashout refi my only option there?

3. With a 1031 Exchange can you put 75% into properties and 25%(taxed) into other things or does 100% of the equity have to be rolled into real estate? 

My goal is to acquire two properties in the next six months. In 3-4 years I would love to hold 5-10 cashflowing properties while using the BRRRR method to build a larger portfolio.

1. HELOC

 - Pros: No tax burden, liquidity, low rates, CASH FLOW from renter, ability to access equity for investing, could hold property to enjoy the major long term appreciation from the development happening in the area

 - Cons: This is my primary residence so I would have to figure out a living situation 

2. Cash out refi

 - Pros: Cash, could split funds into a second property and live in an apartment - but have two rentals 

 - Tax burden, living situation, fees associated with refi

3. 1031 Exchange

 - Pros: No immediate tax burden, access to all equity, could roll into a duplex, small commercial, etc

 - Cons: Paying realtors, closing costs (many in my building have seller pay closing), etc

What sounds like the best option for my goals?

Thanks everyone!

EDIT: Worth mentioning this property is financed at 3.6% with a 3.5% down payment and bought for 128k with around 5k down and 2k for closing.