All Forum Posts by: Grigory Pekarsky

In order to calculate HELOC and cash out refinance, you need to take into account your loan-to-value ratio. For example, if you owe $100,000 on a mortgage and the property is worth $150,000 then your LTV would be 50%. This means that for every dollar of equity in your home you can borrow only 50 cents. If it's time for an upgrade or downsize and you want to use all proceeds from the sale towards another investment property this calculation will help determine how much money you'll have left over after paying off the mortgage.

Buying a multi unit property can be a great way to increase your income and diversify your portfolio. If you're thinking about buying another property as an investment if you already own a house, here are some things to consider first:

-Do I have the cash for this purchase?
-Can I afford the rent on both properties? Will that amount cover my mortgage payment on my primary residence? What will happen if something goes wrong with either one of them and they need repairs or renovations?
-What's the likelihood of me needing money in the future for other reasons (emergency fund)? Is there enough equity in my current home to cover it without selling or refinancing it at a higher rate/payment ?
-What kind of time commitment will this new property require of me? There are expenses and repairs that you'll want to check into and keep track of, and if you're home is still your primary residence it may also be a source of stress as well.
-What type of return on investment am I expecting from this purchase? Will I get a better deal if I buy with someone else or am I taking all the risk on my own? Be honest with yourself about how much you know about this business/industry (home rentals) and how long it might take for you to make back what you put in. 

1) Find local professionals that can give you some leads. There are many real estate agents out there in Northern California who have relationships with other brokers and investors. These relationships may lead them to wholesalers or others they know who may be able to sell properties directly without the need for an agent. Reach out to these agents and let them know what kind of property you are looking for so they can see if someone has anything available at the moment. If not, ask if they would mind checking back with their contacts every now and again as well as giving referrals when they can.

2) Reach out to the wholesale market. Many people in this industry do not have a full time job in real estate, but are just doing it as a side business or on the weekends when they have free time. They are usually wholesalers who buy properties at auctions, tax deeds, foreclosure sales, etc and then sell them for a profit. Wholesalers may only be available during certain times of the year depending on what type of properties they are buying. For example, many investors go to tax deed sales where local counties sell their surplus properties that were never paid off by the previous owner. 

The first thing you need to do is find out what properties are on the market in your area with similar size units or amenities. Then compare those properties' asking prices to their last sale price (or appraised value) if they have sold recently. This will give you an idea of what buyers are willing to pay for similar properties in your area--and it's often not far off from what sellers might be able to get if they're patient enough!

Another way to get an estimated value of your multifamily is to compare it against other nearby properties that are currently on the market. Keep in mind that you may not be able to do this if there isn't another property similar enough to yours nearby. If there's no other comparable properties, find the ones with the closest size and amenities and see what they're listed for! This can also work if you happen to have a smaller unit--try finding larger units within the same neighborhood or zip code so you can use them for comparison. One final note about doing your research: try looking at properties that were listed for sale in the past year or two, but never sold.

Real estate investing can be an intimidating field for new people to get into, but it doesn't have to be scary! There are plenty of ways that someone who's never invested before can quickly get up-to-speed with other investors and start seeing success. If you're interested in getting into real estate investments it's important that you know what type of investor you want to become. Do you want to flip properties? Buy and hold? Rehab? Each one has its own pros and cons so I recommend doing your research before diving in head first if possible so that you know which direction will work best for your situation. I wish you good luck in finding the right path to pursue, Matthew!

Every inspection report has both good points as well as bad points about the house, which means it's always best to look at them side-by-side rather than focusing only on the negative information provided by an inspector. If possible, try talking directly with other people who have recently purchased a new house, or have them talk to you about their own inspection experience. Most people are willing to offer some personal insight if asked, so don't be afraid to ask. If possible, try to hire an inspector with five years or more of experience under his/her belt. This will hopefully ensure that the person has seen enough houses in their time that they'll recognize any major issues on the property right away. Again though, keep in mind that there's no guarantee this will always happen - sometimes an inexperienced contractor might find something wrong with your house before any more experienced contractors would have.

Inheritance taxes are a major issue for people who have been lucky enough to accumulate some wealth over the years. In order to minimize these taxes, it is important to make sure that all of your assets are properly documented and organized so that you can determine what would be best for your heirs. By doing this, you will ensure that they don't end up paying more in inheritance tax than they need to because of an improper distribution of funds.

It is crucial to make the distinction between your taxable estate and your net worth. Your net worth is simply what you are worth at this point in time, whereas your taxable estate is everything that you own (assets) minus any debts (liabilities). The latter number must be subtracted from $5,340,000 for married couples or individuals if they want to figure out how much inheritance tax will need to be paid by their heirs. For example, if an individual's net worth was $10 million but they had accumulated $15 million of liabilities during their lifetime (that needed to be subtracted), they would only have a taxable estate of $5 million which could pass along free of any federal taxation.

Retirement funds are an important part of your financial security. The government has created a few guidelines as to how you can use those funds for retirement. But as long as the money is going towards a goal that will make you more financially secure in the future, it does not matter what type of investment vehicle you choose. In order to use your retirement fund for investing in Real estate, you need to:

1) Have an understanding of your risk tolerance: Knowing your risk tolerance is important when using retirement funds because it can determine how aggressive of an investment you want to make with your money.

2) Be mindful about taxes: You may be subject to income tax on any gains from investments, which could lead to a reduced return on your investment and/or taxes due at year end (if applicable).

3) Understand the withdrawal rules: If you withdraw money before age 59 ½ without penalties, the IRS requires that it be included as part of gross income. There are no early withdrawal penalties on up to $10,000 of earnings from your traditional IRA7 after you have reached age 55, but withdrawals taken prior to age 59 ½ may be subject to a 10% tax penalty.

4) Don't forget about required minimum distributions: The IRS requires you to start taking money out of your account at age 70½ or face a 50% tax penalty on the amount not withdrawn.

5) Proceed with caution: When making large financial decisions such as applying for an advanced degree or accepting a job offer, using retirement funds could lead to additional taxes and penalties if the decision doesn't pan out as expected.

There are a few different methods that landlords commonly use to estimate how much they will spend on rental property maintenance and utilities every month. The three most popular ways are: 1) The cost per square foot 2) The percentage method 3) Actual billing statements from previous years.

To find your total monthly utility expense with the cost per square foot method, you need to divide the total square footage by 12 (months). To find your total monthly utility expense with the percentage method, you take 10% x Total Square Footage or 1000 sq ft and multiply that by $ 0.15 dollars per square foot of your home. To find your total monthly utility expense with billing statements, you need to get all of the previous year's bills for each of your listed utilities and add them up (make sure to include any billings charges).

The cost per square foot method is the one that most landlords prefer because it helps make their calculations more accurate - but whichever way you choose keep in mind that these are only estimates meant to help you come up with reasonable numbers. The actual amount could be higher or lower depending on some factors like weather (heating/cooling costs), how well maintained the property is (most cities require certain services like pest control), and how many people live in each unit.