All Forum Posts by: Clayton Silva

This is a lot of what I do for myself and my clients.  I'd be more than happy to assist.

Generally, it helps to see everything in one place (remaining balances, interest rates, P+I payment amounts, rental income coming in etc.).

Then having clear criteria based on your goals.  Is the goal to pay down/pay off loans as quickly as possible for the future cash flow? Is your goal to scale as quickly and safely as possible and acquire more units? All this depends on the stage of investing you are currently in.  

People also tend to get laser focused on rate, which I personally believe (as someone who looks at rates all day long) is a bit of a narrow or misleading target.  Rates don't matter as much as people think.  See my article below if you want to hear my thoughts in depth about this.

Hot Topic: Rates don't matter nearly as much as you think they do

Return on equity is often overlooked as well.  How much equity do you have in these properties and is it time to sell and 1031, or time to cash out and buy more, again a lot of this depend on your specific goals and timeframe.  

Hope this helps and happy to connect!

Generally speaking HELOCs are going to have higher interest rates than 30 year fixed loans even on rentals.  I would consider a couple things:

1) Smaller HELOC for down payment of 20-30% and a normal loan for the remaining balance. This will reduce your overall mortgage payments and to be frank, 30 year loans with sub 100k balances are extremely difficult to finance right now.

2) Likely avoid DSCR loans since you mentioned you plan on using the property for personal use and DSCR loans are fairly strict on business purpose rules.

3) Talk to other investors in the area and run pricelabs/airdna reports to get an understanding of what you can rent it out for to see if it is worth the capital outlay and cash flow.  Make sure to note what months make the most money.

Hope this helps!

Depending on a number of factors, a lot of our mid-sized investors are converting to blanket DSCR loans so they can wrap multiple properties into one loan and ultimately into on insurance policy. It is easier to get better commercial insurance terms when doing this (state dependent).

Other than that, I would call all the best insurance brokers in your area and see what your options are.  Insurance is a mess nationwide right now.

 Love it!

Couple things to answer your question:

1) The investment vehicle depends on a lot of different factors: how much are you working with currently, how much do you contribute annually, how much do you need to do those things at that age, what is your sleep number (this is my favorite investing question because each person is different).  All the "sleep number" is, is what amount can you invest at what risk level can you invest it and still sleep ok at night.  If your investments are keeping you up at night, you don't have the risk tolerance nor understanding for your current portfolio. 

2) Can you build and grow a business between now and then that can eventually run itself with you largely hands off? This is going to be the most efficient way to retire.

3) What areas do you have an edge/understanding/grasp/ability to invest in?  For some people the best investment is real estate, for others it is ETFs.  Neither is really about the vehicle but more the understanding and discipline to execute a strategy by the individual investor.

I recently answered a similar question, but think it may help you as well:

"Most people focus on the market before they figure out the strategy/goal. That question is nearly impossible to answer without knowing what your goals are? Are you investing in the Midwest for cashflow and foregoing appreciation? Are you a high-income earner investing for tax offsets? Are you looking to make a little cashflow and go for appreciation plays. Each market comes with pros and cons, but you have start with the end goal in mind or else no market is going to get you where you want.

As someone who only invests out of state (CA price to rent is about as out of control as NY) I have different ones in different markets for different reasons. I would not recommend (from my personal anecdotal evidence) doing major rehabs from out of state as it tends to be difficult to manage.

I hope this helps but definitely define your goals and lay those out, then figure out which markets are best suited to help you achieve those goals."

 This is one of the most common "unicorn" questions I get in the industry.  Do they exist? Yes, technically, but for the most part, they are regional programs offered by small banks.  Even our nationwide lending partners may only do it in a couple states or regions.  The pricing is typically not that good, the overall offering is often no better than a normal low down payment conventional loan.  The biggest draw for folks is the low-down payment typically, and often times, if the buyer does not yet have the 3-5% down payment required they may not actually be financially ready to buy a home anyway.  

That makes more sense, I would definitely have a plan for the funds and deployment before selling.  Shoot me a DM for at least approximate market location, and I can see if we get any clients looking into that specific market to see if we have any interest and may be able to assist in the offload.

 100% on point