All Forum Posts by: Chris DeChiara

Thanks guys. So is a cash out refi not a good idea? I was led to believe it would be in order to use as much equity as possible for a buy and hold condo/th.

In terms of the market, this area is up and coming. New schools, subway system, by the airport, new construction nearby. New, trendy cafes and supermarkets, etc etc. 

A lot of the condos look like they're going for between 200-300K and are a couple years old. Then there's the brand new construction. The SFH homes are from 500-700K close by.

Probably not as much info as you need, but that's what I know...! Thanks!

Thanks Steven! This suggestion was from a friend/mortgage banker. I don't take it as gospel, but that's the first suggestion I've heard since I started looking more serious.

Forgive my ignorance-if I buy a 150K condo outright using my equity, say at 3.4% am I netting everything after insurance, taxes, etc since there's no mortgage payment then? And since my 1st mortgage will be higher as a result, I can pay that with the larger cash flow from the condo rent?

And what do you mean by "leverage the return on the new investment?"

Thanks!

Chris

Hi all,

I have at least 200K equity in my SFH. I'm interested in buying and holding a condo/townhome in the "interest" of a nice cash flow and of course appreciation. I'm wondering if using ALL of my equity and buying a condo outright (if possible) is the most advantageous way of going about this.

Thanks!!

Thanks. I literally have talked to ONE mortgage banker (and friend) about this and it seemed like that was an "ideal" option. 200K to buy outright that is. Just taking it with a grain of salt, not as gospel.

Thanks Justin.

All I could use is equity in my home to finance/buy a new home. That would negate the PMI then right? But it's a moot point if I'm not living there then?

I read about a scenario (in the Bigger Pockets book) of buying a house outright at say $300 return a month versus buying many houses with a down payment on each and ending up with say a $500 return. I have 200,000 equity and I'd like to use it the smartest, most advantageous way possible.

Hi everyone,

I'm a newbie to real estate investing and finally want to jump on board in buying and holding a townhouse/condo about 30 minutes from me. 

-The property will either be in a newly or recently newly constructed area. Or something built within the past couple years. New school systems and even a subway being built by the airport. Many people are moving to the existing properties.

-I'm looking at something around 150-250,000, but I guess this will all revolve around my motivation? That motivation would be a decent cash flow (might be more important than anything), appreciation of course, and the tax write off. 

-I would love to net at least $500 a month if possible.

-It's my understanding that an FHA (or is it VA?) that would be an ideal choice, but I would have to live in the property right?

-I have about 200,000 equity in my current SFH and one option I was told was refinancing and possibly using all of it to pay off the 2nd home completely. Then I'd have a much bigger original mortgage I'd have to pay off (with the rent). Is that smart??

-Is it personal choice to use all the equity and buy one home or a couple months with a smaller down payment in each for a possible bigger return? Or is one just a better choice?

Sorry for all the questions. I wanted to put everything in one place and depending on the responses split the questions up to the appropriate forums.

Thanks!!

Chris

Hey everyone,

I'm Chris, a professional musician in the Northern VA area. Looking forward to buying (and holding) my first property soon. Thanks in advance for all the help that's already listed here. I'm sure it'll help immensely!