All Forum Posts by: Eli Ettinger

OK, let me try this again.

1 - Refi makes it worse.  You could only get 70% of maybe 90k = 56,000 at a cost of around 260-270/month...which would leave you with about 30-40/mo or a max around 500/year in CF.  You would still have 34k in cash left in the deal, which means it will take you almost 70 years to recover it...and start making a profit on the cash flow.  Can you say "grandchildren"?

2 - HELOC isn't any better.

3 - If you did nothing, you will have spent 90k plus, with a CF of 3600/year.  That will only take you 25 years to recover your cash, but you would have 90k of your cash dead in the water.  At least the refi would get you a new 50k+ to reinvest with.

4 - My choice would be to sell it, even if all you walked away with was 70k, and reinvest in in the next deal.  Let the next deal recover the 20k you left behind, and start profits from day one.

@Eli Ettinger

Cap rate is used more for commercial property and less for Residential investments.

Can you please share the monthly rent and for how long is the lease with the tenant, and also how much is your expenses, so people that don't know how to calculate a cap rate will still be able to provide answers And also use the answers for the benefit for them to understand

Thank you in advance

@Eli Ettinger you bought this place with zero down??  I think people are trying to tell you they are not understanding how much cash you have in this deal.  that information will help us help you

Sorry, my mistake.  I just commented on a different post and couldn't get that one out of my head.

No worries. I though maybe I did something wrong on my end of the post:)

@Eli Ettinger refinance it and pull your cash out so that you can move to another deal with the current property continuing to cash flow. I don’t this this is as bad as you believe.

if you have it financed at that high a DTV then you only have a small amount of cash in this deal? it may cost you more to sell than the amount of cash you have invested (if I understand what you posted) also, what is the interest rate? is the 4 % CAP calculated on the cash flow including the mortgage payment?

What's the cash flow? 4% cap.

What is financed? 100% equity.

How much cash do you have in the deal? $90k

Your first home appears to be cash flowing very well. The second two are marginal, possibly even bad. 

Even though you own the homes outright, Roseville and Houston are both making less than $400 a month and that's before setting aside money for vacancy, repairs, capex, etc. I would get rid of both these properties immediately.

Like others have said, we can't really help you with your goals unless you tell us what those goals are.

minimal flood hazard, Zone X.  No I have never done an elevation certificate. Thank you.

@Eli Ettinger: Are your units on a second floor? What is the flood zone A or AE? Have you ever done an elevation certificate?