All Forum Posts by: James Purvis

@Greg Scully - I'm just thinking that if I take a loan on a property that's already paid off, I will be cutting my cash flow by a third / half bc of the new loan. If I invest in another property with that $ for the down payment, I will have to get another loan for the principal balance and if I only get cash flow on that property that equates to what I lose on the other property, it's essentially a wash right? And if it doesn't cover, it's "underwater."

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $300,000
Cash invested: $60,000

Gorgeous updated and fully remodeled condo in the heart of Costa Mesa. This 3 Bedroom / 2.5 bath home comes with a series of upgrades including: distressed wood flooring, custom lighting, granite countertops throughout the house, custom paint, new dual pane windows and sliding door, custom tile work, built-in audio system in master bedroom and living room, stainless steel appliances, built-in wine fridge, washer / dryer, and so much more!

What made you interested in investing in this type of deal?

Great location, always will rent

How did you find this deal and how did you negotiate it?

My realtor

How did you finance this deal?

20% down, 30 year fixed

How did you add value to the deal?

Fully remodeled

What was the outcome?

Has never been vacant!

Lessons learned? Challenges?

Finding a good contractor is super challenging.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $216,200
Cash invested: $21,000

Large 3 bedroom townhome with an open floor plan on main floor. Updated kitchen w/ slate tile and hardwood floors in living room. Outside patio off kitchen area perfect for a grill. Full sized washer and dryer on main floor and a pantry. Upstairs has a good-sized master with private bathroom. 2 additional bedrooms upstairs with and another full bath.

What made you interested in investing in this type of deal?

The location was ideal as it's close to the Denver Tech Center, Park Meadows, and newer area of South Denver.

How did you find this deal and how did you negotiate it?

My realtor brought me this deal

How did you finance this deal?

5/1 ARM

What was the outcome?

Great rental property. Has only been vacant 2 months in 11 years!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $216,200
Cash invested: $21,000

Large 3 bedroom townhome with an open floor plan on main floor. Updated kitchen w/ slate tile and hardwood floors in living room. Outside patio off kitchen area perfect for a grill. Full sized washer and dryer on main floor and a pantry. Upstairs has a good-sized master with private bathroom. 2 additional bedrooms upstairs with and another full bath.

Water, sewer, and trash included in the rent.

Pets may be considered with additional pet deposit and good references.

The location is ideal at Lincoln and Osage near Inverness, Denver Tech Center (DTC), Lightrail, and Park Meadows Mall

What made you interested in investing in this type of deal?

The location was ideal as it's close to the Denver Tech Center, Park Meadows, and newer area of South Denver.

How did you find this deal and how did you negotiate it?

My realtor brought me this deal

How did you finance this deal?

5/1 ARM

What was the outcome?

Great rental property. Has only been vacant 2 months in 11 years!

@Greg Scully - Completely agree. I want to put this money to work. My one concern though is that if I do the re-fi and get a 4-5% rate on it and then buy something new, I will have two loans to pay off which could put me underwater. Is that usually the case?

I have two single family rental properties paid off and I want to go bigger and get into multi-family and am wondering if doing a cash out re-fi is the best way to go for the down payment?