All Forum Posts by: David Choe

Ah that sounds great, thank you for the detailed advice! I will definitely try to find a US lender that does business in my area. 

Hi, I'm a US citizen currently living in London. I have a stable job working at a British company, but have not had any US income in the past 9 years. Looking to invest in the US real estate market again, and have enough for a down payment, but curious how feasible it will be to get a mortgage. Anybody have any experience getting a mortgage while living abroad? Thanks!

Hi everyone,

I'm looking at a duplex in the Houston area that looks large enough to be converted into a 4-plex. I understand Houston is a big quirky when it comes to zoning, and my internet searches were quite vague. Does anyone have experience in this and know how difficult it would be to do?

Thanks

@Lance Lvovsky @Dave Foster Thanks for the insight guys, I guess timing will be key in making it happen. Appreciate the insight!

Hi all, not sure if there's a clear answer to this, but just curious to get your thoughts.

I have a steady cash flow at the moment where I can save a few thousand/month. How do you guys decide whether to purchase a property now, or wait a few months until you have more cash to put down on a more expensive place. 

I'll give a hypothetical example for clarity's sake:

• Buy a $250,000 property now with $50,000 down, and then another $250,000 property 6 months from now with $50,000 I save up during that time.
• Save up for 6 more months, and just buy a $500,000 property with $100,000 down.

Of course, the availability of a solid deal may dictate a lot of the decision making process, but let's assuming that the qualities of the deal at both price points are equal, what kind of points do you all consider?

Hi everyone, BP newb here. 

Sorry if this has already been asked, but I'm curious if it's possible to roll multiple investment properties into a single 1031 exchange, given that the new property is valued at higher than the total of all the other properties. 

For example, if I sell 3 properties worth $100,000 each ($300,000 total) and then purchase a $500,000 property as a 1031.

Thanks!

Right, if we're going by the 1% rule:

the $250K(all cash deal) property should give you a $2,500 monthly income with no mortgage payment

the $1.25M(20% or $250k down) property should net you $12,500 monthly income with a mortgage payment of about $4,000, which nets you $8,500.

Obviously, these are very simplified numbers that don't take into account a few other factors which will add to your costs, but leveraging the mortgage will really multiply your returns.

I also agree, leveraging a mortgage to acquire multiple properties at the minimum 20% is the way to go. 

If we go by the 1% rule, your income will be 5x the amount if you do an all cash deal.

Additionally, your Cash-on-cash return should well exceed standard mortgage rates.

All this, and we have't even considered the tax benefits you'll be getting from your interest payments.