All Forum Posts by: Trent Glace

 I am worried about over-leveraging at the current moment.  Perhaps I am playing it safe since we are newer to the game or perhaps I can see a fairly large economic collapse happening in the near future.  Predicting the stockmarket to pull back drastically, then the housing will adjust accordingly too.  At some point the US economy/ government debt will need to correct itself also... which will impact global economies. But that is a conversation for another time and by someone who is more economically inclined than I.

Anyways, point being is that I will gamble with my heloc. I lock in 5 year ARM next month and then refi in a few years once the market corrects itself. Timing is key. Other benefit is that I have the liquid cash + cashflow to keep growing this way.

I calculated the above with satisfying my one year of living in the place and then 8 years of accelerated payments.  During the first year the mortgage is coverd and I cashflow +/- $1300 per year.  Years 2-9, the payments are covered and I cashflow approx. $5070 per year.

Alternatively, I can cashflow approx. $10569 per year by running it out for the full term.

Just don't know which option to take.

Hi all, I've been lurking behind the scenes for about 2 months but this is my first post.

My wife and I have a LLC set up and are diving into the industry starting with duplex, triplex, and 4-plex units. We are working some cash deals on two 4-plex units around $200k each right now, and also pulling an FHA to buy a duplex for $110k. Future plans are to continue with similar growth as rapidly as possible until we can achieve larger multi unit apartment complexes. Now back to the immediate question at hand: we are planning to pay cash from investors on the two 4-plex units and then heloc the investors back within a year so we can all move onto the next one(s) together. But for the FHA property we are not sure the best plan of action. Would it be better for us to 1. Pay off the $110k duplex in a calculated 9 years with an acc. bi-weekly + principal payment plan to have access to this equity quicker? OR 2. Just ride out the FHA for full term and 1031 the property when we decide it's time to put those funds to work elsewhere.

As of now I am planning to ride out the duplex for approx. 15 years unless an opportunity I cannot refuse comes up before that.

Than you in advance for the advice, it is much appreciated.