All Forum Posts by: James Jones

@Josh James Thank you for your thoughts. I'd like to focus on north Dallas subs like Plano, Richardson, Carrollton, Farmers Branch, McKinney, etc. Since I live in Collin County, that's ideal. Would you put $40k into one SFH or $20k into two lower income SFHs or $40k into a 2-4 plex? My goal is cash flow.

@Richard D.  So with tax auctions are you bidding for ownership of the house or just the tax lien? Sounds very interesting. Are lists and dates available online or do I have to go to the county court offices? I like in Collin county. 

@Stewart Beal  I'm still pretty open with my investment niche. Leaning towards SFHs with ARVs of 100-150k, but I'm also trying to learn all I can about multifamilies (2-4s) to get started. I worry about SFHs cash-flowing enough in the Dallas area - All seem to be at 1% of purchase price.

@Richard D.  Thank you. I really appreciate the advice. Do you have a resource/book you would suggest to learn how to do the tax auctions. 

@Wade Sikkink  Unfortunately, Texas law prohibits a second mortgage on top of a cash-out refi mortgage, which is what my loan is currently. I had no idea of this limitation when I did the cash-out 18 months ago to do some remodeling. 

@Richard D.  I'm not sure I have the confidence nor the desire to buy a low-income property. Something to consider though. When you say rinse and repeat how does it work to get my money back out of the property to do it again? Do I do a cash-out refinance or just save the cashflow until I have enough to buy another?

@James Wise  Thank you!

I'm new to the site and have found it to be a great resource. I have a question related to funding a down payment for my first investment properties. I have about $20k cash reserve, but rather not spend it. Instead, I have an opportunity to get a cash-out refi on my home. My mortgage guy tells me I can get roughly $37k after closing costs. My rate will go up .25% and my mortgage will go up $165 per mo. I can't do a HELOC as the note on my home has had a prior cash-out so I can only replace with another cash out.

Okay, so here's the deal. I see my equity in my home as dead money. So is it worth paying the 4k to cash-out refi and increased monthly payment to get $37-40k to put down on an investment property?  I'd still have over $100k equity in my home even after the refi.

So is this a good direction? If not, what other options would you suggest for funding a down payment. I'm not really interested in having a funding partner. Thank you.