All Forum Posts by: Dennis Soto

@Isaac S. Will do.

Ok. @Joe Villeneuve I misread that the first time. I understood your point with your other example.

@Michael S.I appreciate your response and your insight. I would say my current focus is on cash flow. The more I can cash flow, the better positioned I will be to accumulate assets for future cash flows. However, if I decided to do a HELOC, does the bank allow for the credit to be used on an investment property? Do you know how long the process is to withdrawal the funds once the HELOC is in place?

Well @Darius Ogloza, you have officially put me back on the fence. However, if I don't find the funds for those future deals have I really won, or just lost opportunities?

@Joe Villeneuve It would be ideal to find something that cashflows  2.5 times as much, but its probably not ideal in this market. However, if I can cashflow the same or slightly better, while paying down my Property valued at $750 rather than the $285, that does sound much more enticing. 

I also hear you on the portion of paying down the mortgages. I only pay the mortgage on my primary residence out-of-pocket as it doesn't produce income. My tenants pay my mortgage at my rental property.

Hello @Bob Okenwa and thank you for your perspective. I've heard a lot about how a 1031 can help you save money on taxes when you sell, but haven't done much research on the matter. I will definitely look into that. Your idea of flipping the $132,000ish profits into something bigger that will cashflow more is a very interesting option.

@Andrea Weule I think you meant to say you disagree with @Bob Okenwa and would rather hold the property unless an opportunity to supplement the cashflow through a second property in which case you would refi to supplement the lack of capital for a down payment. Correct? The only issue I see I would have with your scenario is that in my limited experience I have found the refi process to take too much time. If I don't have the funds readily available to me, it would hinder my ability to jump on a good deal when it presents itself.

@Jaron Walling I appreciate your response and insight. The problem I am having is that I'm not sure how to "determine the point of equity or upside when SELLING makes more sense". Is there a formula for that? Do you know where I may be able to find information that will help me make that determination?

@JD Martin Thank you for your response. My plan is to invest the money in other properties. Although I don't have one lined-up yet, the idea is to have the money at my disposal when the opportunity presents itself.

I am an amateur when it comes to real estate investing. However, in 2012 I made a homerun deal that if managed properly it can get me to my new realized dream of becoming an actual investor. Here's the deal:

I bought a single family 1900 sqft, 3 bdrm, ranch-style house with an attached mother-in-law suite. I converted the property into a 2-family 5 bdrm (2 & 3) which I house hacked for 3 years. The purchase price was $77,500; I put 3.5% down; did a 203k loan which got me $30,000 from the bank for the rehab and put $10,000 out-of-pocket for the balance. All together i was $12,700 out-of-pocket and had a mortgage of about $108,000.

In 2015 the house appraised at $185,000 and I eventually refinanced for $130,000; I got my original investment out of the deal and use the remainder along with a VA loan to buy my primary residence. This property now cash-flows close to $1,000/mo. which is helping me pay down both my mortgages.

The property value is now $285,000 and I owe about $118,000 on my mortgage. Would it be smarter to sell the property, cash-out big and use the capital to invest in other properties? Or does it make more sense to refinance again and have less capital to invest?

My concern is that a refi would drop my cash-flow/equity and I'm not sure if the current market is the best time to invest.

I am an amateur when it comes to real estate investing. However, in 2012 I made a homerun deal that if managed properly it can get me to my new realized dream of becoming an actual investor. Here's the deal:

I bought a single family 1900 sqft, 3 bdrm, ranch-style house with an attached mother-in-law suite. I converted the property into a 2-family 5 bdrm (2 & 3) which I house hacked for 3 years. The purchase price was $77,500; I put 3.5% down; did a 203k loan which got me $30,000 from the bank for the rehab and put $10,000 out-of-pocket for the balance. All together i was $12,700 out-of-pocket and had a mortgage of about $108,000. 

In 2015 the house appraised at $185,000 and I eventually refinanced for $130,000; I got my original investment out of the deal and use the remainder along with a VA loan to buy my primary residence. This property now cash-flows close to $1,000/mo. which is helping me pay down both my mortgages.

The property value is now $285,000 and I owe about $118,000 on my mortgage. Would it be smarter to sell the property, cash-out big and use the capital to invest in other properties? Or does it make more sense to refinance again and have less capital to invest?

My concern is that a refi would drop my cash-flow/equity and I'm not sure if the current market is the best time to invest.