All Forum Posts by: David B.

Thanks for this, that's definitely something I'll discuss with my mortgage guy.

the short answer is I'm looking for a 4plex not needing immediate renovation that'll cash flow at 75% LTV with some prospects for asset appreciation. that's not an easy thing to find these days. I've been looking at Boyle Heights but the area is already quite expensive.

Yes, that's exactly what I intend to do, but I am only interested in purchasing a local property I can self-manage, and the market is so pricy here in Los Angeles that I am beginning to feel I won't be able to find a good investment locally until we go through another downturn, which could be years away.  The issue for me is how to put that money to work while I'm waiting.

@RD Delgado

My wife and I live in our triplex in Los Angeles that recently appraised for $900k (would sell for 1.2-1.3M, but low appraisals for multifamily are typical in our gentrifying area).  We have a loan balance of $430K, 30 years at 4.15%, no other debt.

We have about $150K sitting in a bank account.  At some point we'd like to use this money as a down payment on another rental property, but given where the market's at we may hold off until the next cycle.   This raises the question of what to do with the money until then.  I have a low risk tolerance and am not comfortable putting that money into stocks or bonds for the foreseeable future.

I am wondering whether it would be possible to pay down $150K of principal, then tap our equity through a HELOC or some other instrument when the time comes to buy another property. At some point in the future I'd like to buy a 2-4 unit property in the $5-700K range.

I'd very much appreciate any advice!