All Forum Posts by: Dave Mills

@Chris Seveney
He said it is set to 74 degrees. 

We have a single floor 1300 sqft house with 6 year old Trane hvac system. Yesterday, Tenant messaged me and stated that the system was not working around 3AM, so we dispatched a AC contractor to check the system that same day, they found nothing. I was told the system is in good condition and functioning properly. Today tenant messaged again about the same problem, I asked AC contractor to take another look. 

I know as Landlord we are required to make and pay for any repairs to make the unit livable that are not caused by the tenant. If ac contractor finds no issue with the system again, who would be responsible for the payment? Landlord or Tenant? 

My primary residence is paid off, and here are the details:

2500 sqft

Purchase price: $320K

Current Value: $450K

Houses are being sold with a decent price tag in my neighborhood, but the rental income is low. For instance, A 3000 sqft house is on the market for $2300 though not looking too good. I have a brick and very well maintained house, maybe I would be able to get $2500, if I am lucky. That puts me in a range of %5 - %6 in cap rate which is really low.

If I sell, I can use the lump of cash I received for a down payment on my prospect primary residence, and use the left over on investment on real estate. Though home prices are so high right now, I don't see a great cash flow with rental units. 

I am leaning towards selling, though I wanted to hear about other opinions or suggestions. I will probably keep it couple more years to see if this  madness settles down on real estate market. 

Should I sell or rent? 

Thank you all in advance....

We turned our first home into investment property in 2016, and we are getting $1200 a month. The house is paid off, and its worth around $170K right now.

We purchased our primary residence for $290K(Current value 340K) with 30 yr fixed rate %3.8($150K remaining principal balance as of today) . The money we receive from rental property goes into our primary residence principal and we have about 6 years of payments left(As long as I keep my current job). I have around $60K in the bank however I can't save any money from my income. I have also around $100K in retirement account with my current company.

My intuition tells me to pay off the current residence in 6 years, and make it another investment property; we can then purchase our primary residence again. My only issue is that the cash is tied up with the houses(Equity) and I would like to purchase another investment property with equity line credit right now, maybe a house valued around $130K-$140K. I can only put around $50K down and the rest is mortgage. Its probably going to take another 9-10 years to pay it off. I won't be making any money from both rentals, is buying second investment property before paying off primary residence mortgage a good idea?  

I have a rental property that is paid off, I want to use the equity to get another one. However I don't understand the concept of buying bunch of properties with equity, isn't that creating more debt? Your cash flow is going towards paying of the loan, how is that positive cash flow? Or how is that building wealth, when you are in debt up to your neck? Can someone please explain leverage before I make a huge financial mistake? 

Can I refi a rental property that is paid off? 

My rental is paid off. 

Thank you for your time.

We turned our first home into investment property in 2016, and we are getting $1200 a month. The house is paid off, and its worth around $170K right now.

We purchased our primary residence for $290K(Current value 340K) with 30 yr fixed rate %3.8($150K remaining principal balance as of today) . The money we receive from rental property goes into our primary residence principal and we have about 6 years of payments left(As long as I keep my current job). I have around $60K in the bank however I can't save any money from my income. I have also around $100K in retirement account with my current company.

My intuition tells me to pay off the current residence in 6 years, and make it another investment property; we can then purchase our primary residence again. My only issue is that the cash is tied up with the houses(Equity) and I would like to purchase another investment property with equity line credit right now, maybe a house valued around $130K-$140K. I can only put around $50K down and the rest is mortgage. Its probably going to take another 9-10 years to pay it off. I won't be making any money from both rentals, is buying second investment property before paying off primary residence mortgage a good idea?