All Forum Posts by: Jeff Blankenship

I purchase a new property in 2007 for $186,000 to be used as a rental property from day 1.  The property was initial rented for $1300.  Hindsight is 20/20 and not  good investment, but I'm trying to figure best way to exit this poor decision.  Here are the numbers:

Market Value = $165,000

Current Loan Balance = $176,000

Current Rent = $1100

Tax/Ins = $3200 / yr

Property Mgmt = 10%

Yearly NOI = ~ $8500 (Rent - prop mgmt - tax - ins)

Current Mort Pay (PI)= $1050

Yearly Net = - $4,000 (negative cash flow per year)

OPTION 1 - Get a HARP refi at 4.378% (PI $900), and reduce yearly net to -$2500 ($1500 improvement, but still a loss)

OPTION 2 - Put on market and hopefully sell at market value = $165,000 (minus commission and mortgage, and closing costs).  Negative -$20,000

Yes, market could improve, rents could go up, but both could go down as well.

Anybody see an Option 3?

Mark,

sorry to be a pest - looking on Sam's site they have lots of selections.  Is this the one you used:

Select Surfaces Laminate Flooring - Canyon Oak

Thanks Mark - Great Job!!!

Here is the house I'm getting ready to re-hab, and I think that flooring is going to look GREAT!  From this picture the laminate flooring looks good, but it is a major hack job around all the doors, and buckling up in middle of floor.  so we want to put a new floor down in entry, den, dining and kitchen.  I'll take a look at the sam's product you used.   Thanks!

Mark,

Great Job!  Would you PLEASE share the flooring you put down and the paint color/scheme?

I have a similar rehab on 2 foreclosures I'm purchasing from bank and need a good affordable flooring solution.  Currently the house has cheap laminate and I want to put something else down in common areas, kitchen, hall, etc...

regards,

jeff

Peter makes an interesting case for the economic benefits to more leveraged properties compared to free and clear. However, how are people doing this? Currently all FANNIE MAE / FREDDIE MAC guaranteed loans only allow 10 mortgages for any individual. To get around this, I guess 10 could be purchased by person 1, and 10 by person 1's spouse for a total of 20 if the bank would approved. Any thoughts on how to make this type of plan work?

I currently have 6 rental properties and banks will not even consider giving me any more money right now. However, mainly due to the high leverage position on each property (90% or more). There are some refi HARP options, but still I'm just curious about the REALITY of being able to purchase and finance 10+ properties. For those of you how have more than 10, how did you do it? Local bank, owner financing?

regards,
jeff