All Forum Posts by: Jeff Ausdemore

Hello everyone!

My wife and I are in the process of building our portfolio by purchasing a 2nd single family home to hold (and rent out) long term.

Some quick round numbers for some background:

Our principal residence has app. 126 k in equity.

Our 1st rental property has app. 100 k in equity.

The property that we are looking to buy next will be somewhere in the 110 -150 k range, and we both have exceptional credit.

We've taken a HELOC out on our principal residence, so we'll have the 20% down in which to fund investment property #2.

My question is: do you recommend that we go the traditional finance route (30 year fixed rate, hopefully 4.5% or lower, etc.) OR try and use the equity in investment property #1? Or, is there an investment property loan program that I'm not aware of that I should look into?

Thanks very much for any and all help in advance!

JA

Thank you!

JA

I'm looking anywhere from Bedford out to I-35 west, and the price is definitely reflective of the ISD in terms of $/square ft. I've noticed.

What's your opinion there?

Thanks again for any advice you might spare!

Jeff A

Hi Adam, although I'll be out of town this Saturday, I'd love to come to a BP meetup at some point soon. My wife and I live in Bedford. When is your next meetup? Or do you know of another meetup during the week in the mid-cities?

Thanks for your time,

Jeff

Kevin/all,

I enjoyed reading this post. I too, have one property in the NE Fort Worth/Keller area, and it has been fantastic. We are looking for another property right now, and I've been asking myself some of the same questions.

The question I'm really struggling with is:

Do I buy a single family home for just a "pretty good" deal, and make sure that it cash flows just a little bit (bc our strategy is buy and hold), or do I try and wait for something under $80/square foot and try to rehab it a bit, THEN rent it out.

It seems like the area that you are talking about GENERALLY sells for $90-105/square foot, if it's in the KISD area.

JA

Thanks very much, everyone. Some very thoughtful responses here. There were several points that I hadn't considered that you all helped with.

Thank you!

JA

Hello everyone,

We are on the verge of purchasing our 2nd rental property, and I'd love some of your perspective here.

A bit of our background:

We have app. 36 k in equity (according to the local credit union) in our principal residence in Bedford, TX.

We have app. 45 k in equity in our single family home investment property in Fort Worth, TX.

My wife and I have fantastic credit, and will be closing on a HELOC next week for $36,600 to use as a downpayment (15%) on this new property.

Our strategy is to find another solid single family home in a great school district (Keller, Birdville, etc.) that has long term potential to accommodate great quality renters, like we do now.

My question for everyone is, after I use the 36k for a downpayment, what do we do to raise capitol for our 3rd property? I've been told that it is really difficult to pull the equity out of an investment property, so that's why we went with the HELOC from our residence.

What would be your next move?

Thanks in advance for all of your help/insight!

JA

Wow- some outstanding points to consider here. 

I think that we've thought things through, and given the above experiences people have shared with us, we're definitely leaning towards a 30 yr note going forward, mostly due to the flexibility and DTI ratio it favors.

Thanks again, everyone- this is another reason I love BP so much. Where else can you ask for help, and minutes later gain the perspective of a dozen experienced professionals weigh in to offer insight? 

JA

Great points Nick, Yoochul, and RJ.

Thank you!

JA