All Forum Posts by: Eric Piccione

Definitely, We're leaning toward that option as it gives us a Plan B. I would love to arbitrage the $ to get more properties but at the end of the day, if we stumble across a solid STR opportunity, then we're in a good spot to be able to pay down a portion. Our rate is 5.6% so it's not terrible but it's leaving us in a tough position as our necessity for STR income is quite high so paying down a portion would be great. My thought would be to do a rate term where we don't pull cash out but just adjust rates when they go down. (Whenever that will happen)

I'm moving overseas with my wife and daughter to be closer to her family and I'm trying to figure out the best way to proceed.

I work in remote sales so as of recently, my commissions have been great. That said, while we're abroad, I'm trying to take advantage of the time we have when we have good income to set ourselves up nicely from a financial perspective.

In order not to "burn any bridges." We're planning to keep our current primary residence in the states and potentially list it as an STR. That way we have a home base if and when we decide to come back for a few weeks/months.

Doing some research on Airdna, there are only a few properties that have the same features/amenities as us (8 in the whole city) and they range from $250-$1,100/night in the winter.

We'd be one of the only properties in our city with certain amenities (gym and hot tub) So my rationale is that we'll be able to charge highly for a unique experience. My only issue is that our mortgage payment is quite high as we never intended to make our current primary residence a rental in the next 5-10 years. So in order to break even as a STR, we'd need $4,200/m (15% management fee - $3,500 for mortgage + utilities)

Likewise with a LTR we'd break even past $3,200/m which seems more than attainable since comps come in from $3,500-$4,000 for similar listings.

My 2 questions are;

1. Would it be worth to try a STR or just go to LTR for the property to make less revenue but also have less expenses?

2. Since we live overseas and our monthly expenses are much lower, would it make more sense to pay off all or a portion of our home in the states or just look to expand our portfolio?

I feel like I would regret not at least trying a STR for our property as it could work out well for us. At the same time, I to minimize my downside in investments so LTR's would be a more consistent cash flow option (at least to me)

Something my wife and I have thought about doing is at least reducing the principle balance so that whichever option we go for, we at least aren't losing money every month.

Really looking for some clarity here as these next few years are going to be very important in order for us to set ourselves up well for the future.

Thank you in advance for your thoughts and advice on this topic!

Same, I made a more general overall business mastermind a few months back where all business owners can get together but it would be great to have a real estate related group! Would love to join if one gets created!

I created a website a few months back, have done all the initial work of optimizing it and making sure it's easy to navigate. The problem i've run into is it's not converting well. I've gotten around 15K views on ads and about 300 web visitors but no luck. I don't think I can post the website here but If anyone would be able to help me out I would be extremely grateful. Plenty of opportunity with this site and I'd love to work with someone in the BP community to get this up and running. There's some long term goals I have with the site and would like to work with someone else to improve it and make it more professional. Thank you in advance to anyone who might be able to PM or put me in touch with someone who can help!

Hey everyone, in the final stages of deciding which route makes the most financial sense.

We live in Texas and currently House hack a property and are wanting to utilize the equity built up in this home to the next one for a down payment.

Current locked in rate is 2.45% and would be able to cash out 25-45K of equity. 

Current offers sit around 5.75-6.315%

Total mortgage payment would go from $1,497 up to $2190 at the highest estimate. We're confident we could get something all in for $1,700-$1,800 and pull out $30K

The other side would be to use a HELOC and use that as a downpayment on the property. Estimates we've gotten sit around 5.99% variable rates of a 40K cash out.

What route would make more logistical sense in order to get the next property in a risk-averse fashion and set yourself up for continued success?

 We'd actually still be net positive with a refinance. This house hack has done pretty well and we'd estimate it to still be ahead $500+ after everything is said and done. Not including the gains from the next property and what we'd get for it. What are your thoughts on a home equity line? 

 Good points, so comparing selling and Home Equity Line, we wouldn't want to start from ground zero by selling and getting property #1 again. For us, we have some cash on the sides but not enough for a down payment. That said, we would definitely want to start acquiring properties quickly. What if we don't need the full lump sum? We're looking for enough to purchase the next property and do some minor renovations after that, nothing major. Curious to hear your thoughts as we want to start tapping into our home to get us further along on the real estate journey just unsure where to start.

We have a primary residence that we locked in a good rate of 2.45% and are wanting to purchase our 2nd investment soon. We're considering our options and are curious if we should utilize a HELOC, cash out refi, or just sell it?

Since our rate is so low now, I would hate to make that go up by refinancing. But on the flip side, our current lender we're trying to go through said we can't use a heloc when it's an investment property. We live in the home as well and rent out a garage apartment in the back so I can't understand why that matters. 

I would really like some help here as we're very ready to move out of this home and go somewhere else to build up our portfolio. Any help would be massively appreciated.

Thank you for responding Andrew, We are in the process of getting one approved. In your experience, is an FHA loan for the second house achievable? We did refinance our home last year since getting our initial loan but I'm not sure if the FHA is still attached to the home or not. If we're able to get our next one for 5% or less that would be incredible.