All Forum Posts by: Gustavo Gonzalez

Greg:

My wife's property is valued at $550,000.  I'm all for selling the house and using the equity to purchase/exchange a rental property with more cash flow.  This was her first ever house purchase so she has a hard time letting go of it...I'm working on her.

Renting would have been great prior to the birth of our first born son who is only 4 months old.

Thanks,

Gus

Archie:

Thanks for the breakdown. 

Purchase price was $912,000 with 10% down, so my down payment was roughly $90,000 so I put in approximately $240,000.   I didn't take into consideration closing costs so you bring up a good point that I totally missed.

Gus

Hi All! 

I'm going to describe my scenario in general terms for the sake of simplicity - here it goes!

My wife and I are currently living in a house that we enjoy very much.  The house was purchased May 2014 and the mortgage balance is $800,000 - thankfully houses in our area have appreciated nicely and we can probably sell the house for $1,250,000 for a profit of $450,000 (now this is an inflated profit considering the purchase price was $912,000 and we spent $150,000 in remodeling).

Prior to getting married in 7/2012 my wife purchased a property that she has been renting for the last 4 years.  That rental income has mostly just covered the mortgage.   The mortgage balance for the property is approximately $312,000.  Her tenants will be vacating the property this month so then I had the idea to consider the following.  What if we were to sell the house we live in and then use that profit to pay off the outstanding mortgage of her rental property?

I mostly see this as a win-win but just wondering what anyone else may think?  We are fairly good at saving money so my intention would be to save the money we normally pay for our current mortgage - $5000 for 2 years then go out and purchase another primary residence for us.  In the meantime we would have lived in her rental property "mortgage free" and once we move out we can rent that property which generates $2500 of monthly rent. 

Thoughts?

Best,

Gus

Hi All:

Just wondering what others on here would do?

I'm looking to perform a 1031 exchange for a single family home that I've owned for 3 years for a duplex and I've come across some bumps, mainly financing bumps.  I have 10 investment properties (mixture of single family homes, duplex, triplex and fourplex) and my FICO score is just below that magical minimum of 720.  I've searched for different lenders and now it seems that the best interest rate I can get is 7.7 percent.  Even at this interest rate I will still have some cash flow of approximately $500 dollars.  Alternatively, I can take the money from the sale which is approximately 65K and use it to pay off loan mortgage debt.  

Any thoughts?  Would would you all do?

Good afternoon all: I have a property that has been recently vacated by a tenant who has been in the property for 9 years. I purchased the property 4 years ago with a tenant in it (section 8). At the time of the home purchase, the deposit was not transferred to me due to prior arrangement by the previous owner and tenant. It seems like they had worked out a system where if the tenant was not on time with the rent, it would be deducted from the deposit. So, I collected a rent deposit from the tenant as a new landlord- tenant agreement and now that the tenant has vacated the property she wants the deposit back - full amount. Well as it turns out the property has suffered significant wear and tear damage including damage from tenant negligence - repair items that could have been managed at a lower cost had they been brought up sooner. So how much of the deposit is this tenant entitled to? Is there a rule of thumb or percentage that I can withhold to cover damages? Cheers!

James:

Thanks for the response.  

An eviction transaction by the property management company that I'm using costs $1500 per house (that's another story for another time) - I know that is high but since I'm based in Los Angeles I don't have any other  resources for a cheaper and trusted eviction option.  

The eviction lasts 60 days so I'm hoping that with the notice to vacate which also lasts 60 days I can avoid the expense of the eviction.

But I do agree with our suggestion - non paying tenants out fast!  Maybe I can cut them a deal to vacate in 30 days with more than partial or full deposit returned.

Cheers,

Gus

I have 2 properties (single family homes) in San Bernardino County - Adelanto, California to be exact that I have now labeled my 'problem' properties.  The original plan for these 2 properties purchased over 2 years ago was buy and hold but a string of multiple events with poor tenant selection/population has now forced me to consider selling.  In brief, both properties have had tenants I have had to evict only to replace by tenants (current) who have stopped paying their rent and possibly need to be evicted as well. 

The good news is that my local real estate agent believes I have built some good equity and after a sell, I will still be ahead.  I've asked my property management company to place  a 60 day notice to vacate for each property tenant.  However, I really want to sell these properties ASAP some I'm wondering if I should ride out the 60 days until the properties are vacant then sell or should I put the properties on the market while the tenants are still in the property?  Any advice or experience in this matter is much appreciated.  Of course I realize the downside of trying to sell with tenant occupied is that they may hinder the selling opportunity but in the meantime who knows if the tenants will be out in 60 days or possibly more even requiring an eviction.

Regards,

Gus

Hi All:

I currently own 4 investment properties and my owner occupied home loan making a total of 5 mortgages. I am looking to purchase a new home. My lender has informed me that there is a new regulation for jumbo loans that an individual can only have a total of 4 mortgages. I have been advised to decrease my loans to 3 now, in order to qualify for a 4th. The jumbo loan of course would be for my new owner occupied home. Thoughts?

Thanks

Hi Brant- I'm not expected to cover the 5% difference.

Thanks,

Gus

Travis thanks! Interest rate will stay the same at 4.25.