All Forum Posts by: Hema Dasarathy

Thank you again @Scott D Burrows. I ideally would like to get to 20 and pause. Let me look into fourplexes too. Thank you for some great inputs! 

Thanks much @Stephanie Medellin! That's a good point. Noted!

@Max T. we did the error of buying all in both our names. Trying to see if it these two can be refinanced in one of ours releasing two for the spouse.

@Account Closed! The peace of knowing some are paid off and a few more to go. Thank you so much for your input. It's good to know that people do pay off.  I guess once i cash-out refinance each to a 30 year fixed, will not refi anymore.. struggling with leaving so much equity in the home and not utilizing it. Thank you again!

Thank you @Scott D Burrows &  @Kevin Romines! Such great inputs! Absolutely helpful!!!

 After reading both your inputs, have sent a note to my lender to check if he can refi both homes which are up for refi,  on my name releasing my husband's to buy two more on conventional on his names. Did not realize earlier that it was 10 on each of our names.

Let me check more on the small banks too. The ones I spoke either did not know what I was talking about or had a 10 year fixed amortization, which will put too much pressure on me. I guess I am talking to the wrong banks..will explore more.

Ditech has come back to me with an expanded criteria prog loan with a 5.75%, 30 years fixed, I believe they have rolled it out last week.

Would you consider paying down a house? Pros  & cons?

My Journey as an Investor:  
I started investing in buy and hold properties in May of 2014. Triggered by the loss of my 80 year old mother early that year,  a lady with very minimum formal education- she had managed to bring up her 5 kids, provided for their college education and instilled them with a high values.

Coping with the loss of her passing, I wondered , what had made her hold her head high and never ask anyone for monetary help even after we were adults and earning well. Our dad had passed away when she was 48 years old and she had to rely only on herself.
I realized her secret- she had diligently invested in RE in India over a period of time, whatever money she could save. These had appreciated over the years. She sold small parcels as big expenses had come up during our growing years, never asking anyone for help.

I am a Realtor by profession and had NOT, till then,  invested in even one home other than our primary.

A feeling that if mom could do it, without an education, knowing simple maths, what is holding me back. There are always going to be unknowns.

Today, what started in May of 2014, I hold with my husband 10 homes, each making very decent income.

Discovered BP in 2017 and realized there are so many of us on the same path and there is so much collective experience  and wisdom here! 

It is true: When the student is ready, the teacher will appear.

*********************

My goal this year is to buy two more investment homes.

Here is my dilemma and am reaching out to you all for help.

All of these 10 mortgaged properties are on conventional loans. Reached the max of 10 and have to go with some form of creative financing to increase my buy and hold numbers.

Two of these are up soon for refi. Both have appreciated well and I can cash out refinance to get a 60K out of each, ( 30 years fixed at 4.9%). They were financed at 3.25% and 3.5% ARM earlier)

Trying to work a couple of scenarios here:

1. Cash out both and go with a private money lender to buy the 11th/12th. ( 6%-6.5% interest rate with PML)

2. Pay one down and refinance the other and buy the 11th investment with a conventional loan. ( don't have enough liquid cash to pay down both) ( conventional at 4.8% 30 years fixed)

Objective: Peace of mind that one is paid down and we can snowball all income from it to paydown another.

3. Keep the refinance, cash-out refi independent of the buying the #11th. Buy 11th with pvt. money lender.

What would you do in such a scenario?

Does anyone paydown the investment home even when there is a lot of equity built into it and not cash out refi?

Any words of wisdom from your experience is highly appreciated.

And so hesitate..

Thanks much for reading through.

@Koushik Ananthasayanam  Raleigh and surrounding area is a great place to invest with growing market, great schools, in-flow of jobs and weather to not say the least. The challenge I see would be the home price with an investor needing to put  25% down to get good rates. We don't have anything at the price point you might be looking with $30K as down. Also realistically speaking in our market to be able to net $500/ month after all expenses ( including property management ) might be a very rare if not impossible scenario IMO.

Having said that, if you are good to invest on a purchase price of $210K to $250K we would be a great place. Homes are appreciating very fast. Our market is also very hot and homes stay in the market a few days only for receiving multiple competing offers. 

Send me an inbox if you would like to discuss this market further.

@Juhi Jain Good homes in Apex, Cary that are in the 5-8 year old built region go really fast and with competing offers. The one you are mentioning might be the one in Pemberley sub-div. and has been in the market for sometime now as it was way overpriced when it came into the market. 

This is an area which has been appreciating really fast especially with the new Costco in Apex and rentability is excellent.

Though the garage is a good to have factor, I don't see that as a big enough negative in rentability or appreciation. 

If you are not already working with an agent, inbox me and I can work with you in finding some good investment homes in and around RTP.

Hi Pradeep. I am an agent in this area. 

Thank you!!

I am confused. Under this rule can I deduct the purchase of a new fridge, washer dryer, microwave, dishwasher for a rental property bought in 2016, all under 2500 with bills for each? I am also actively managing and own these properties. Have a real estate license. ( if that makes a difference).
Any inputs are highly appreciated!

Hi Apkesh- Apex, Cary, Morrisville, Raleigh in NC ( Wake County) are great places to move to in all the aspects that you are considering. RTP area with its tech concentration, HealthCare industries, Top rated schools and real estate investments might just be the right place. Apex and Cary have been in the "Top places to Live" a few times in Time Magazine. Check the link.
http://time.com/money/collection-post/3984379/apex...

I have lived in this area of NC now for the past 17 years and have been a Realtor for 13 of those years. A nice mix of family, culture and arts and if you are in Wake or Orange county we are the Blue part of this purple State. :)
Send me an email if interested and I will introduce you to many of my clients who have moved here from CA, WA, MA and other places and are very happily settled. You could possibly talk to them to put to rest any doubts you might have.
And ya..did I forget to mention the weather? You will love it! :)

If it was me- I would buy a good Honda Odyssey- a minivan. Not touch an SUV for the mileage it gives. You don't need to have this conversation again even when all the kids go to college. We got one when my kid was 1 and is still running great after 20 odd years. Buy once. Buy good.
In all the goals of saving and investing for the future, somethings need to be done now too to have a good life. I think with three kids, she is not being unreasonable. Make it happen for your kids to be comfortable if buying for the wife psychi doesn't click. 

My 2 cents.