All Forum Posts by: Bob Oliver

Thanks everyone. Many enlightening responses. Leaning towards reserves preservation out of an abundance of caution. Will probably accelerate some principal payment increases and maybe cut a year off the payoff. A lot of good insight. Appreciate it all. Happy New Year.

Thanks Chris. My only other concern would be reserve depletion. I need to look at how quickly i  can rebuild those reserves with the increased net and decide. Thanks again.

Thanks Chris. It's definitely not making a return % so paying off makes even more sense.

Trying to decide on using reserves to pay off rental mortgage or keep. I am retired, 72 and own 4 college rental houses. Zero vacancy as housing shortage is acute and typically let students pick their successors. I still handle minor repair calls but contract larger jobs as my stiffness increasingly manifests itself and I need the deductions. Considering payoff of smallest note of $35,500 @ 3.25% and 4 yrs remaining (multiple refi over the years). Currently rental income on this 4BR/1BA is $1940 and will incr to $2200 6/1/24. Not buying any more properties at this stage of life as burning gas in the RV far more appealing than more debt, not to mention the price of rentals in my area. Cash flow is key focus as these rentals are my retirement income. Can someone point me to a calculator or thought processes for weighing the benefits of payoff-not payoff?

suggestions needed for finding cashout refi finance on one of 6 leveraged rentals. is conventional available for this problem? what other options.

Well done! Bryan. Sounds like an excellent deal.

Will-I like that scenario. Let's talk more.

I went with solo-k.com. Inexpensive and bare bones. I set up my own LLC, Lawrence at solo-k prepared the trust docs, I opened the custodial checking acct, and i am now in full control of my funds. Know what is allowed and not allowed and do nothing that personally benefits you and you are on your way. i have yet to obtain a non-recourse loan for RE acquisition but that is coming. Anyone done that yet through their plan?

Bryan
sorry for the delay in responding. still getting the hang of this BP and did not see your post. My maintenance has been surprisingly minor. up until a year ago I have been able to deal with it myself while a full-time engineer. Heater here or frozen pipe there. All are older houses, 30s-50s, so most have window a/c. I wish i could buy in bulk. I read the students the riot act on partying and have never had any serious damage. messes are another thing because they don't clean much. I send a letter in March to remind them of what it will take to get the deposit back so the place better be clean. Usually isn't. Cleanup is made easier by renting to girls who will spit shine a place even if i was to sink a bundle into cleaning beforehand. Most want to move in early to store stuff they don't want to take home, so in exchange for limiting my time available to get in and cleanup, they are eager to do it for me.
you have a point about the eviction but i seriously doubt it will happen. It would hurt like ell if it happened yes, but they would be on the street with little option for another place in this town, so acceptable behavior is the norm. i also visit regularly, and watch my houses like a hawk. While kids today don't have a lot of practical experience, most are respectful and i have never had one argue with me or sass me if they have done wrong.

Brendan
Thanks. I value the 50% rule from what i have learned here but my market has few if any SFH that meet it. Just curious what some pros feel as I begin to analyze outside my area and screw up my courage to make the leap into vacancy land.