All Forum Posts by: David H.

@Mike Dymski

Thanks Mike, I’ll try out the BP calculated, I had not realized one was available.

I’ve been using excel and running spreads but I’m honestly a bit messy when it comes to this. I need to build out a spread model, color code it and save a template.

One of my biggest concerns in the situation I have is my experience is limited so I struggle making realistic projections for reinvestment opportunities. Also the double edge sword of my market being at a peak making it a great time to sell today but difficult to buy tomorrow.

You’re definitely right, I need to crunch some numbers.

@Mike Dymski

Thanks for the advice Mike, I definitely need to crunch some numbers through a deal analyzer. Do you have any programs or sites that offer one you would suggest?

@Joshua Watts

Thank you very much Joshua, I really appreciate it!

I’m leaning more towards the holding and it is great to hear it worked out so well for you.

@Noel R.

Thanks for the input Noel.

My goals are to build a strong passive income stream. My dream is to hit $10k monthly passive income. I would ideally like to reinvest in a larger multifamily, 10+ units, where I could justify hiring a property manager.

In regards to the HELOC I actually have a $0 balance. The HELOC availability is $107k. I wrote that misleadingly now that I look back at it.

@Taylor L.

Thank you very much for your insight Taylor. I am definitely interested in scaling up into a larger multi family and love the idea of self storage but honestly don’t have the first idea of how to execute.

When I was working as an SBA lender the self storage market was the crown jewel due to its stability. Always wanted to give it a go, probably time to start doing some research.

First off, I want to say how grateful for BiggerPockets and all the invaluable information the forums provide.

I currently am experiencing a dilemma with my first duplex property that I currently owner occupy but will be moving out of to house hack a second duplex in same market.

Would you sell? Or would you hold?

Location: Portland, Maine

Duplex with 6 beds 2 baths (3 each)

Purchase date: 05/01/2015

Purchase price: $265,000

Reno costs: $35k

% Down: %10

Morgage Balance: $216,988

Morgage Rate: 3.65%

Monthly payment (P&I,T,I): $1,556

Rental income from first floor: $1,950 utilities included except for electric and internet

Monthly expenses est.: $500

Estimated rent for 2nd floor (owners unit): $1950

Total estimated rent: $3,900 monthly

Total estimated expenses: $500 monthly

I currently have a $107,000 HELOC on this property

The property appraised by the bank at $383,000 for the HELOC. Comps in the market would place this conservatively at $400,000

My inclination is to hold as the rental income is great. My fear with selling is I will not have as good of an opportunity to sink the money into right away that would match the income from this property.

The condition of this property is quite good and a lot of updates have been made over the 4 years I’ve owned it. I do have some large expenses coming up in the next few years such as replacing the oil boiler with a gas boiler (the basement floods a increasingly and the oil boiler is oddly the lowest point intentionally) and the roof is probably 5 years out maybe a little longer.

I’m grateful to be in this position and honestly got very fortunate with how the cards rolled out on this one. I’ve been able to run a very successful Airbnb out of this property and collect rents I could have never imagined at first. That being said, I believe the market is at its peak and selling now would net a 4 year gain that I could redeploy elsewhere, especially while I can take advantage of the capital gains savings as this was my primary residence for over 2 of the last 5 years.

Any suggestions would be greatly appreciated! Thank you in advance!

@Lisa Sluss Hi Lisa, I’m 99%sure a lender would love to do a cash out refi on a free and clear rental property.

I used to work as a lender doing owner occupied CRE finance nationwide and this was our favorite thing to do. We would go up to 60% LTV cash out, granted this was CRE for small business.

@Marcello Di Gerlando

Hi Marcelo, one option I have come across at KeyBank, which I believe other institutions offer, is a HELOC with the option to term out balances into a fixed 15 year term loan as you go along (I believe up to 3 times). It's not ideal but it's a sort of work around.

Right now my HELOC is at 4.5% variable, I'm going to use it for rehabbing a duplex, est. cost $30k. I am considering locking in a fixed rate and terming it out. I may not though since I don't foresee rates jumping anytime soon. It's nice to know it's an option whenever tho if rates do start to creep up.