All Forum Posts by: Gigi Michaels

Thank you Drew:)

I appreciate it your time. I keep thinking I'm not a real estate expert, but over time as the mortgage goes down and the rental amount can go up, then I would have even more for my retirement.

The refi would be a 30 year fixed. Rates are going up, so I am looking at 3.9-4.1% most likely if I can lock it now, I am at 3.15 but it's an adjustable, which is up in two years. If I hold it it, makes sense to refinance it. I guess it's just the maintenance I think about, as a town house or condo would seem to be less to have to think about. As a non professional investor, I guess it's better then not:)

Thanks again Drew!

Good morning all:)

I am looking for someone who might be able to advise with respect to my current situation. I own two properties that I purchased during the time I was married and received as part of the divorce settlement a number of years ago.

Both have been primary residences at different points. Neither would have typically been considered investment properties as they were purchased as a primary residence at the time. Both are in in demand homes in terms of rentals in excellent locations, with good schools etc. I have rented them both out at different points and can cash flow them. One cash flows for $1000 a month, and the other for over $500. The next time around they will most likely go for more. I can manage them myself.

I am 53, and looking at these properties in terms of long term retirement strategy investments. From a cap rate perspective, they would not ordinarily fit the 1-2% rule. But it has been suggested that given I received them in the divorce, if I consider that if I sold them and had to try and find other properties to invest in, I am already in these properties without having to incur transaction costs or qualifying. Due to the nature of the neighborhoods and level of renters that they attract, I am always at low risk as the people I will get consistently have high credit ratings and good incomes. Both homes are in areas with stable employment for high income earners. Housing is difficult to find as well in both areas.

My question is, though it doesn't fit the typical investment formula, would it still be in my best interest to hold on to these properties long term? I am on my own with having to figure out what is in my best interest. I have built and remodeled houses throughout my life and am good getting renters and maintaining. I have had good loans on both of them, and am in a position to refi them to a 30 year fixed right now. The only reason I wouldn't would be if I was planning on selling them in the next 5-7 years. My other question is whether or not it might be wise to get a 15 year fixed on the one that cash flows $1000 plus if I can still cash flow $500 or more on that property.

And if I didn't live in either, would I be ok if I was to rent something smaller, or would that cancel out the benefits? I am comparing it to investing in an S & P 500 index fund, which scares me a little bit, but seems like it might be easier if I was told that what I am doing does not make sense.

Any thoughts or help would be greatly appreciated:)

Thank you:)

Can anyone recommend the best form to use for a residential lease in the state of Washington? When I was in VA I was able to get a very good one from The VA Association of Realtors, but the Association for Washington does not deal with forms anymore. I am not a member of any organization that I can go to for one. I am just looking for as good of a lease then I had for my VA property.

Thank you in advance for your help!