All Forum Posts by: Jack B.

 From my post:

then I actually dropped my rate by 1% despite them being investment properties and bought more houses. Now I have equity sitting in there and going down, it's be great to be able to tap it before it goes down FURTHER

 I take it you are that lawyer, lol.

I have cash on hand but not enough for the apartment complexes I want unless I take out a loan at 8.5% interest. I'd have enough to buy in cash if I did another cash out refinance like I did two years ago, but then I actually dropped my rate by 1% despite them being investment properties and bought more houses. Now I have equity sitting in there and going down, it's be great to be able to tap it before it goes down FURTHER but then I'll be cash flow negative and paying 8.5% on the rentals to buy an apartment complex in cash. That could retire me cash flow wise (I'm still working W2 career). But I'd be paying a lot of interest until I can refinance the houses, and who knows how long that could be. Feels like I'm in a holding pattern due to interest rates...

These properties were refinanced 2 years ago at 3.625%. Cap ex is coming up and I'm tired of dealing with HOA, I'd like to sell and buy something else, a mobile home park, multi family, etc.

But since I have to replace the debt due to the 1031 rules, I'll be stuck with a loan and huge payments. I'd like to pool the money from the sales with cash to buy something outright, but again, the 1031 rules.

Are there any other options for me?

Yeah, that's how I always preface it. That my costs have gone up AND they are still coming out ahead because they had a discount for 3 years, etc.

 I've got some stuff going on personally so I'm not super excited to deal with new tenants, I had 3 units turn over recently and like I said, I'm not in the mood of dealing with new tenants, though I do want the money, I don't need the money since I have a 300K+ W2 income. I'll just pay more in taxes if I raise rents.

Two different houses. One, the guy has rented from me for 7-8 years. I've raised rent once, 3 years ago to bring it closer to market. He has bad credit and can't buy a house, but he can certainly rent a new one albeit with the foreclosure on his record it's harder. I am not big on dealing with hassle this year, but I also have it rented by $500 a month less than market. That's 6K a  year...Raise his rent and risk him moving and dealing with crummy tenants or stay put?

Another rental, 3 software engineers each of which have six figure incomes. I think raising the rent on them by $200 (they've lived there for 2 years) isn't likely to cause them to move, they have chickens and such in the yard, they are comfortable there. 

Raise their rent or not?

Thank you gentlemen!

This is what I see on listings on Redfin, apartment complex for just under 5 million

Net operating income, is that after expenses but before debt service? I used to know this stuff but forgot as I stopped looking at MF long ago.

Gross adjusted income? Adjusted by what?

What rent multiplier is a good rent multiplier?

The insurance expense must be monthly not annual, I pay 1/3 of that for a half million dollar house, let alone for a 5 million dollar apartment complex...

Multi-Family Financial Information

• Insurance Expense: $2,967
• Other Expense: $57,403
• Net Operating Income: $262,468
• Gross Adjusted Income: 377602
• Gross Scheduled Income: $397,476
• Total Monthly Income: 33123
• Gross Rent Multiplier: 12
• Total Expenses: 115134

As noted, need some assistance in finding a MFH investment, pocket listing, etc. I'm looking for cash flow, so primarily in cash flow markets of the mid-west. 

This fool tenant is out of luck, he only gave 19 days notice, not 20. 20th of April to 9th of May is 19 days....lol. Guess I'm keeping last months rent to cover the expense of hauling his crap away.