All Forum Posts by: Danny N.

Fair enough, I honestly haven't ever really looked into getting loans for these cheaper properties. I've always been the kind of guy where when I have some money I buy something and just pay cash. I may need a new bank bc chase is just not fun to work with. I'd love to get a ton of mortgages for these smaller properties but again I mentioned my issue above about taxable income and 3 large loans 2 home and 1 auto hanging over my head. As a small business owner, there is alot of deductions and cash so although I could pay more taxes than on the $165k I show it would be silly. From what I understood when trying to buy the place in miami they barely squeezed my loan through with some engineering and I had to put 50% down. So bc of that I figured no way I could get loans on anything else and never bothered. 

Actually when the comp sold for $615k I tried to refinance the condo with chase and although im a private client they wanted almost $18,000 to refinance it an cash out, so I passed on that. It's a great bank for peace of mind but they're awful for lending.

Negative cash flow? Currently the bills are $1268 mortgage + $1300 maintenance/taxes so its cash flowing almost $900/mo. I'm just paying extra from the other condo rentals I have coming in monthly. It's not negative anything, I paid $502k in a foreclosure auction and its on the top floor and one on the lowest floor with the same floor plan just sold for $615k so Im assuming $650k for mine net after fees, but really probably $700k bc im many floors higher and have an ocean view which the $615k one didn't. Who knows miami is an odd market, maybe even $750k today, I really dont know but where do you get "negative" from?

As for funds, I dont diversify like that but I do have a ton of amazon and google stock, those are my only holdings in the market and I have a large amount of both and add monthly.

Hey Jeff thanks for the tips, although I am from spring, I actually live in the river oaks area now but yes you are right, my rentals are in the greenspoint area, not 77073 but right next to it. The 3 in the $275k range are right near the galleria, and then the one in south beach. I could sell it but the tenant is a young kid in medical school who is 26 and I've met his parents and they told me they will be paying for his condo for the next few years, so I figure while I have a solid tenant for 4-5 more years I'd rather just let it sit there and possibly appreciate.

I could look up in the woodlands but for me, I honest to god have been up there maybe twice in my life its probably an hour away from me. Do you like the galleria area as a similar investment? There actually is a condo my friend is selling now and he would like $140k for it, he had a long term tenant who just moved out, 2 min from the galleria, remodeled, the issue I dont like is although its a 2/2 and rented for $1500.....the maintenance is $565!

It's just a residential loan, I probably am not allowed to rent the property, but I used it for myself for the first high season and then rented it out. I pay $1268/mo on a 30 year at 4.375 not too great for a loan from late 2015 but again I had to put 50% down to close the deal. So currently I make biweekly payments of $1135 or so to the mortgage co. It's $1000/mo extra on that property on my personal residence here in texas I owe like $200k and there's 9 years or so left on the loan but im also paying an extra $1000/mo there

also as to why I dont use the money for downpayment for others. I bank with chase, Im in the private client and they're miserable to work with. Im a small business owner so although I do make a significant income, the taxable portion is only $165k or so what I show. The issue is my debt to income ratio always getting loans thats why I try to pay cash, Im not a loan officer but my cash flow is significant at work but my personal income is around $14k/mo and I currently have 2 mortgages out 1 for $200,000 left on a $1.4M home(personal) and $232k on the property mentioned above & $70k or so on a classic investment car that I bought, so when they look at me Im pretty tapped out on loans, now I dont know if thats the case if I buy something cheap $150k-200k or not but I know my $500k condo I mentioned, I had to put 50% to make the deal work.

I have alot of paid off properties on my balance sheet but working with chase has been tough to get loans, but I would say my net worth is almost $3M not counting my business and yet I struggle to get loans with chase but yes I would love to get loans to by some properties but my issue is as mentioned above so Im paying a few thousand extra monthly on my home & the rental property trying to knock out the mortgages so I can then borrow.

So here's the thing marty, I own alot of cheap rentals in the $50-60k range that do indeed rent for $950-1100, and the money is great, but at the same time there is no appreciation to speak of and the tenants are less than desirable, they always have issues. I dont use a property manager and do it all myself, but I have a business to run on the side so its tough for me to be on top of everything. I own this one rental at $500k basis + 3 others at $275k basis + 5 others at $50-60 basis and honestly the 4 pricey units, I have no issue renting and no issue with payments even though those 4 are less than 1% rents while the cheap ones are at over 2% rents, I seem to always be doing maintenance + having issues with tenants and of course thats natural and why you get 2%.

I guess in the end for me, I have a high income from work and I want real estate investing to be more long term + peace of mind than high income, but yes I began with the cheap properties but im noticing that although they cash flow well, they dont appreciate and the tenants are annoying to me. The pricier condos may not rent well % wise, but ive gotten solid appreciation from all of them. 

So I have 1 property worth $650,000 in miami beach, I still owe $232k on my mortgage, Im making bi-weekly payments and paying an extra $1000/mo and its leased for $3500/mo and maintenance + taxes are around $1300/mo. Im looking to invest $250k cash and potentially buy another condo for cash. Im wondering if it is better to pay off my mortgage on the 1st property and clear $2200/mo at that point or buy another property for $250k and probably clear much less. Is it better to keep the leverage in place in that situation or pay it off?

I have alot of low income high cap rate properties back in texas but this particular property I bought foreclosed and have seen around 25% appreciation so far in 15 months and miami beach just doesn't rent for high dollar amounts, but appreciates very well. Anyways just curious what you would do in my situation. Thanks

HI guys, pretty new to the forum but not real estate investing. I have alot of rental properties here in houston and now I have 2 decent size pieces of land both on major streets, 1 is 33,000 sq ft and the other is 28,000 sq ft. They are both near lower income neighborhoods, think $100k homes, and its a very high traffic area.

I spoke with an architect last week who wanted $41,000 for the plans, I've never built anything before but that sounds high. What are my options for multi family for lots of that size? I will be paying cash, no financing, and am interested in various options that would maximize the land.

If its commercial ideas you have in mind Id love to hear ideas, I am not a full time real estate investor I own a chain of small businesses but as I said I have a couple rental homes and now these 2 pieces of land Id like to do something with. Thank you for your time

I mean no offense but who would list a million dollar property with someone they don't know who and just happened to solicit them. I can't imagine conversion rates are too high. It just makes no sense to have that approach bc to me it's more like the annoying spam calls I get daily asking me if I want to buy a warranty for my Ferrari even though I already have an extended warranty. Soliciting someone over the phone rarely works i would imagine and yea my perception of realtors has really changed this week since they basically bombed my cell phone,business phone and home number. It was too much and really lesds me to want to do for sale by owner in the future. It didn't sell bc it's in south of fifth and I was asking a record price for the building, it's a penthouse level unit and I was either going to get a record or keep it

Obviously borrowing money increases you % returns cash on cash, but I have a couple rentals that are completely paid off and reading the forum is making me feel like I'm doing it wrong and should be refinancing and BRRR'ing the properties. Should I be cashing out my paid off properties and tapping into equity to borrow more or should I just be happy with the cash flow and peace of mind of paid off properties?

Is it just not wise to pay off a rental property with these low rates today? I guess I'm a bit old school and have this what if mentality and just like paying down debts quickly to save on interest.