All Forum Posts by: German Hernandez

I would not sell strong performing properties unless I wanted to get out of RE altogether. The whole point of REI is to obtain strong performers. Assuming you have strong reserves and good cash flow already, I would harvest some of the equity and go forth.

When you say harvest some of the equity and go forth, what do you mean by that?

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It's in SWFL. It's expected to appreciate in the next 5 years. It's easy to manage. Nothing major that should be getting replaced.

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Definitely looking to hear some thoughts.

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Hello, would you cash-out refinance or sell to buy more investment properties that will have a higher ROI? Thanks in advance.

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Originally posted by @Kevin Siedlecki:

@German Hernandez. My initial reaction is to sell both places, but it has nothing to do with the balance or maturity on the loans; it has to with maximizing your ROI.

When you say you're making $480/month, have you included CapEx and vacancy budgets in that cash-flow? If so, your ROI is about 8% on the $70,000 of equity you have. If you have not budgeted for those things, then it's even lower. You can do a lot better than 8%, so I would cash out and buy something with a better ROI.

For House #2, what would it rent for? If you could get $2000+/month for it, then it might make sense to keep as a rental.

Most likely, though, you will get a higher ROI if you sell both places and put that $150,000 into something with a better ROI. Or, you can keep House #2 to live in, and use the $70,000 from House #1 to buy a small multi-family that cash-flows better than $480/month.

Good luck!

What's CapeEx? Also, thinking about possibly keeping house #2 or even sell both and get something with almost the same or even less of the balance of the first house after using the $140k or more as a down payment.

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Hello, I'd like to hear the thoughts on what to do on the following scenario:

House #1: Principal balance left is about $72,500 with a 5.0% interest rate. The maturity date is is 02/2041. Being rented with a monthly net income of about $480. If it were to be sold, it'll be about a $70,000 to $80,000 net profit.

House #2 Principal balance left is about $135,000 with a 3.875% interest rate. The maturity date is 05/2043. Primary home and much bigger. Monthly payment of about $1,080. If it were to be sold, it'll be about a $70,000 to $80,000 net profit as well.

1. Would you sell both properties to possibly use that $140,000 to $160,000 to buy a home with a balance of about the same one as House #1?

2. Would you sell House #1 and use the proceeds to pay down the balance on House #2 and/or upgrade the home?

Looking forward to hearing the thoughts that are out there. Thanks in advance!

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Hello Basilio, please feel free room contact me. 239-233-7005. Thanks!

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Originally posted by @Vincent Matraxia:

Hi Jen. I have been buying and flipping house for sometime now all in NJ. I am currently looking to get started in the St Pete area. I GC all my projects. I am looking to get my foot in the door on that area, maybe we can work together if interested.

Hello Vincent, I would definitely like to talk to you. Please feel free to contact me. My information is in my profile page. Have a great one!

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All Forum Posts by: German Hernandez

German Hernandez has started 3 posts and replied 9 times.

Post: Sell or hold? Thanks!

Post: Sell or take out equity

Post: Sell or take out equity

Post: Sell or take out equity

Post: Sell or take out equity

Post: Options for investing?

Post: Options for investing?

Post: South Florida - New to Real Estate Investing

Post: Just joined from Saint Pete Florida