All Forum Posts by: Craig Pillay

Thanks @Arn Cenedella. You hit the nail on the head with your last comment - my 5-7 plan is to be financially independent.

Hello

I hope you are all doing well!

I am about to place an offer on a new property than can really unlock great cashflow and push me closer to my goal of being financially free/independent.

I'm undecided about how to finance the upfront cost though (deposit/reno cost). I'm considering selling one of my rental properties that I've had for 8 years that's still not in a positive. However the location and growth is excellent. But selling this will really give me the cash that I need for the new property, and potentially reinvest in another, or even settle an existing one - great equity in this property. I have this fear of letting go of a property.

The 2nd option is to refinance the same property for the needed cash as I have enough equity. Not my favorite option as it will further erode my current cashflows . Perhaps I can sell the property after refinancing it?

Getting this right will really unlock value, so I'm consulting as broadly as I can. Would appreciate any advice please.

Thanks!

Craig

Hello

I hope you are all doing well!

I am about to place an offer on a new property than can really unlock great cashflow, and push me closer to my goal of being financially free/independent. 

I am undecided about how to finance the upfront cost though (deposit and reno cost). I'm considering selling one of my rental properties that I've had for almost 8 years, that's still not in a positive.  However the location and growth is excellent. But selling this will really give me the cash that I need for the new property, and potentially reinvest in another, or even settle an existing one - great equity in this property. I just have this fear of letting go of a property.

The 2nd option is to refinance the same property for the needed cash. Not my favorite option as it will further erode my current cashflows and impact my credit . Perhaps I can sell afterwards?

But if I get this right, then it can really unlock value. So I would appreciate any advice please.

Thanks!

Craig

@Michael Dumler thanks for sharing. I'm not familiar with HELOC but reading up on it now. Yip the equity in the one property is enough to cover the deposit. The idea is to convert garages at the bottom of the flats into batchelor units, and erect car ports outside since there's ample space. So no rezoning required.

@John Leake thanks for sharing. Our major banks are set on a 10 year term for commercial lending. However I've seen alternative options  , so I'll shop around some more. 

Hello all

I have an opportunity to buy a block of flats that will generate good cash flow. Also rental income could be increased (double) by adding more units by doing minor alterations. However since its commercial property I need around 30% deposit and the term is shorter(10 years), which means a higher mortgage payment. I'm considering selling one or two of my current properties to fund this. These properties are not generating good cash flow currently, although the capital appreciation on one is very good.

Would appreciate some thoughts.  Thanks 

Craig