All Forum Posts by: Eva Morel

Hi BP!

I just purchased a 4-plex for 550,000$ cash flow after all expenses is 700$/month. This is my 3rd investment property. I have found my niche in "medium-term rentals." But also don't mind diversifying in a few long term rentals. The units need to be updated. I currently live in a market where housing has exploded and rents are off the chart. I have a few options:

1) raise the rents without touching the property (cash flow could then be around 1,500$/month

2) update the units (estimated 50,000$) and then (cash flow around 3,000$/month)

2) update the units and do medium term rentals (cash flow around 4,500-5,000$/month)

I'm also having trouble kicking the current tenants out with how bad our housing situation is as well as homelessness. I'm not sure what to do at this point so I've left the current long term tenants in place for now. However I also have 30,000$ worth of daycare bills coming up next year. Thoughts?

Withdrawal from IRA?

Due to COVID I have access to withdrawal from my IRA penalty free. The purpose of the withdrawal would be to put the money directly into a real estate investment. I will still will have some money left over in my Roth and my IRA as well as my employee sponsored plan.

I currently own my first investment property (duplex) and am looking to purchase my second. Just want to know peoples thoughts on this and possible pros/cons! If I don't withdraw from my IRA it might be another 2 years before I can purchase another property which isn't actually that long either I just want to get things rolling sooner.

@Darius Ogloza yeah not sure I have the discipline to do that!

Hey there!

Just wanted to get some opinions on what you guys think about refinancing my duplex.

ARV 250,000$

Mortgage Balance 201,000$

Currently have 30 year loan w/ 4.25%

I’m seriously considering to refinance to a 20 year these are the benefits

-loan at 3.35%

-shave off 68,000$ in interest

-shorten length of mortgage by 8 years (I’ve owned for 2)

- be debt free sooner than later

The con would be

-pay an approximate extra 150$ per month

-5,500$ in closing costs (the closing costs can be worked into the new loan)

I cash flow the duplex right now at 550-600$/month, refinancing would still allow me to cash flow just at like 4-450$/month. I currently work as a nurse making decent income (80,000$ annually) and I don’t plan on quiting any time soon, maybe decrease hours once I get my real estate license and more properties but overall I’m not dying to quit being a nurse. I’m invested in owning the duplex for the long haul as part of my retirement strategy. I do want to buy 3 more properties in the future. I’m currently 35 and a 30 year loan really seems daunting to me. Does anyone have deeper insight/opinion about this that would help me to be more informed?

@Joe Alford if she has been paying on time I would let her stay... we are where we are today because we have built ourselves off of the backs of our older generations.

I guess I thought that was a lot. It was my first property though!

Looking forward to it!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $232,000
Cash invested: $25,000

Purchased a duplex 2bed/1bath on each unit. Rehabbed one unit (approximately 7,000$ rehab).

What made you interested in investing in this type of deal?

Numbers and location made sense. Rental income was about 1% of purchase price, with room for increase in rents.

How did you find this deal and how did you negotiate it?

MLS. We actually found out we had a higher offer. We negotiated it with a high earnest money deposit (2,500$), looked to close ASAP.

How did you finance this deal?

by forgoing shopping and Save, save, save

How did you add value to the deal?

Rehabbed kitchen and bathroom

@Rebecca Arko My husband and I are 20,000$ in student loan debt have been paying it off over the last couple of years too! I’m a nurse as well! We just purchased and househacked our frist duplex at 232,000$ renting out the other side for 1,150$ tenant pays heat and electricity. Our mortgage,taxes and isurance are1,450$. Its about 300$ we have put towards mortgage, taxes, and insurance. We pay about 200$ extra in trash and water a month. we also set aside 200$ per month for future repairs/expenses ect. All total expese is 700$....which in our area Is really good. Just know a couple things.... your fIrst house purchase Is always the scariest people wIll try to talk you out of It (my nurse frIends did!) add up your numbers...make sure If you want to leave your house hack It wIll still cash flow!

@Melonie Dickson it depends. Does the place need a lot of work? how good are you wIth codes and estimating-repairs ect? I was going to waive my Inspection report on my first duplex but my realtor advised against it. I listened to him. The owner ended up needing to put In hard wired smoke alarms and new custom egress windows (totalled around $6,500. If you have good networks like plumber, electrician, carpenter you may be able to waive It. But sometimes the inspection can actually help you negotiate a better deal.