All Forum Posts by: John D.

What is the benefit of going to a local bank vs something like a "bankrate.com" or a bigger lender?

More details on this:

First: Thank you to all that respond for your time, attention and patience.

Second: I am NOT a finance person nor am I RE person... I'm in healthcare and have about a 120k a year FT job, a wife and two kids under 8. I grew up working construction and can build / repair anything, I have my hoisting and hydrolics license as well.

I'm a property owner of a two family (house I grew up in) that I know rent out.

I owe 160k on it and have it on the market and have been offered 400k in cash for it. I have come to the epiphany that instead of selling maybe I should take out the equity to purchase another property with a friend/partner/investor. ( He is also in healthcare same salary job, also owns two other 2 families and is just as handy).

I have 50K in student loan debt and owe 15k on my truck and use the extra rental income from this property each month to pay those bills which total about 1400.00 per month.

I also have a 35k lean for a home healthcare company that I own that I used the property as collateral for...

SOOO the question I have is what is the best way to leverage all of this and IF I pull out the equity.. does my monthly payment on this property change? Will I lose that 1400 a month that I use to pay those other debts? What form does that equity I take out come in (credit or cash).

A little more detail in the numbers:

Mortgage include Taxes, and insurance.

1300.00

Mortgage Intrest 2016: $ 6,596.60

RE Taxes: 2,508.89

Payoff: ( 9/1/2017) 162,733.53

Income: Unit #1: $1875.00

Unit #2: $800.00

Yearly Water/Sewer 550 per unit. (Yes I know it's cheap but that is really what it is )

So far this year:

Driveway repair (1,800.00)

NOW:

Needs a new roof Estimates of (11,000.00)

* this is NOT a new home the 800 unit is a consistent rent but if that person left I'm looking at 5 K in update costs.

* both front and back units are accepting section 8

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Thanks John

First:  Thank you to all that respond for your time, attention and patience.

Second: I am NOT a finance person nor am I RE person... I'm in healthcare and have about a 120k a year FT job, a wife and two kids under 8.  I grew up working construction and can build / repair anything, I have my hoisting and hydrolics license as well.

I'm a property owner of a two family (house I grew up in) that I know rent out.  

I owe 160k on it and have it on the market and have been offered 400k in cash for it.  I have come to the epiphany that instead of selling maybe I should take out the equity to purchase another property with a friend/partner/investor. ( He is also in healthcare same salary job, also owns two other 2 families and is just as handy).

I have 50K in student loan debt and owe 15k on my truck and use the extra rental income from this property each month to pay those bills which total about 1400.00 per month.

I also have a 35k lean for a home healthcare company that I own that I used the property as collateral for...

SOOO the question I have is what is the best way to leverage all of this and IF I pull out the equity.. does my monthly payment on this property change?  Will I lose that 1400 a month that I use to pay those other debts?  What form does that equity I take out come in (credit or cash).

A little more detail in the numbers:

Mortgage include Taxes, and insurance.

1300.00

Mortgage Intrest 2016: $ 6,596.60

RE Taxes: 2,508.89

Payoff: ( 9/1/2017) 162,733.53

Income: Unit #1: $1875.00

Unit #2:  $800.00

Yearly  Water/Sewer  550 per unit. (Yes I know it's cheap but that is really what it is )

So far this year:

Driveway repair (1,800.00)

NOW:

Needs a new roof Estimates of (11,000.00)

* this is NOT a new home the 800 unit is a consistent rent but if that person left I'm looking at 5 K in update costs.

* both front and back units are accepting section 8

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Thanks John

I'm considering a rental purchase in the N. Conway area of NH (or lakes region),  I'm doing research the market up there to see what a rental up there can potentially (and realistically) produce for income to replace what’s lost by refinancing my rental in MA to gain the capital for the purchase.

Thanks John

Thanks Ben.. great points... I'm so glad BP has so many people like yourself.. much appreciated!  Keep the info coming!

Thanks in advance to any/all feedback.  I presently own a two family rental in the North burbs of Boston.  I have a little over 100k in equity but the market here has been crazy and I was thinking of selling it to buy something I could rent / use in NH vacation/ski country.  I had the epiphany today (I'm not a finance guru) why not take the equity to make this second rental purchase and do a smaller (condo maybe) in ski country and keep my rental.

Part of the proceeds that I make each month from the rental pay my student loan debt and my truck payment so the proceeds from the sale were going to pay them both off and the rest would be re-investment capital.

There is another part of me that thought of selling the the 2 family and using the capital to buy land and building multiple units up north or buy a couple condos.

Are there other options I'm too much of a newb to think of ?

Thanks John

Thanks everyone...

I'm meeting with my agent next week to get an appraisal on a two family I own in the north of Boston burbs where the market is crazy. It's my only property that was purchased through a family member. I'm looking to sell this property to invest in 1,2,3 properties in NH. My end game is to have a place for my family to use, when not using will Airbnb or vrbo it... as well as have a couple of full time rentals. I have a real estate LLC in MA and I'm trying to figure out how to figure out the best way to manage any taxes... I want to try to use a 1031 from the sale and invest it into a newly formed company in NH for investing... I know just enough to be dangerous and not the details of all this or the limitations. I have read that with the 1031 you should buy a property of equal or more value but where I have enough equity to invest in multiple properties or in land and do a build I don't know how to make that fly... I have my eye on a 12 acre parcel that has a 5 unit design already made for it.

Does Anyone have any experience in this sort of situation especially in NH or MA ?

Does anyone know a good tax/real estate accountant in NH (that is affordable).

Tks John

Thanks for the great advise everyone! 

I have heard Brandon say on a couple of different occasions that he's made multiple offers in the same week. What happens if, for instance, more than one two or say three offers get accepted? do you have that much Capital lying around to close on 5 offers at the same time??