All Forum Posts by: Dennis Cosgrave

I think you have to look at the bigger picture. First of all, are both of you dependent on income from a job? How secure are those jobs? Do you have sufficient reserves to weather a downturn in the economy? Although negotiating a HELOC is an option, you run the risk that the bank could cancel it. A better option might be to refinance and pull out the cash, to either add to your reserves if necessary, or use it to purchase another property.

I made the transition from triplexes to big multi-unit apartment buildings. It really was not that difficult. You need to build relationships with brokers who deal with those kind of properties. You also need a good real estate attorney that will dot the i's and cross the t's for you. The rest is just the same but on a bigger scale. I have to say that transiting to bigger properties actually made my life easier.  The buildings I owned had live-in managers who dealt with all the day to day stuff. Don't be intimidated by the numbers. 

I agree with the above. What in hell are you doing with a $45k car loan? Read the discussion on what kind of cars investors on here drive. That should tell you more than enough. Sell that car, get something cheaper. Either pay cash or pay it off as quickly as possible. That will certainly help your credit score as well as reduce your DTI ratio which will translate into better financing terms when you make your first investment.

I always rented the house I lived in, but put my money into rental properties. For example, the last house I rented had a market value of $600,000. The property taxes alone were $1,000 per month. My rent was $1,600 per month. Owning that house with a 20% down payment would have cost me more than double that. The mortgage payment alone would have been $1,900. Add in insurance and maintenance, well, you get the picture. 

If it is going to cost you $2500 but you will collect an additional $300 per month, it is a no brainer. You will recoup your investment in less than 9 months. Try getting that kind of return in the bank. Even if it costs $5,000, it is still a great return.

Lee Ripma, some people rent because they just don't want to buy, at least not a personal residence. There are several reasons. 1. They just moved to the area because of a job change and they are not sure where they want to live for the long term. 2. You generate no positive cash flow from a personal residence. Better to rent the property you live in and use your cash to generate income in an investment property. 

By definition, if a property has been on the market 40+ days, it is not a hot market, or there is something seriously wrong with the property.

The question I have is, how much value are you adding by spending $30-$50k on renovations? The advantage of the house is that you can add significant value if the dollars are spent correctly. There is little upside potential in a newly built condo.

I don't think you can make a blanket prediction for the whole country. Some markets will increase in value while other markets will decline. We are seeing a major demographic shift taking place. People are fleeing high tax states and moving to lower tax states. This trend is likely to continue for several years. Every investor has to look at all the market data nationally as well as the specific markets they are looking to invest in.

Having said that, I think it would be prudent to wait until the election. There is just too much uncertainty at the moment. 

I would be upset about the ruling. First, the judge states that you are 100% correct and then refuses to enforce the law. Another clear example of an activist judge. You might win on appeal but in California you have no guarantee and the cost is likely not worth it.