All Forum Posts by: Jeff Heng

@Daniel Stevens

I'm in Chico as well. I'm an investor as well as a real estate agent. There are some good deals but they go quick.  Feel free to reach out and we can discuss some options.

Have anyone used co-investing companies for a rental property? There's one in particular called Unison that I'm thinking of using for my next property. From my understanding, it works like this:

Estimated Home Value: $350,000

New mortgage amount: $280,000

Unison Option Investment towards purchase price: $35,000

Unison’s Share in future change in value: 35% - assumes property is approved & standard

Unison Transaction fee (paid at closing 2.5% of $35,000): $875 + closing and recording fees charged by the title company and county

Estimated Ending Value of Home: $360,000

Change in Value: $10,000

Unison Share Percentage: 35%

Unison Share of Change in Value: $3,500

Net Payment to Unison: $3,500 + $35,000 = $38,500

Unison puts in 10%, I put in 10% for a downpaylent. Then when I sell Unison takes takes 35% of the change in value. Is it worth it?

I'm new to BP and RE investing. I am wondering, what I should do now that I have equity. I'm not sure if I'm including everything in my calculations. I would like to get into real estate investing but not sure which situation would give me a better return. I have a house and owe about $115,000 @ 3.25% with 12 years remaining. The house is worth about $320,000. We plan to move to a different city. Should we sell the house and take the money to buy a new house for us to live in and find an investment property OR pull equity out and keep my old house as a rental and buy new house. If I pull equity out should I do a cash-out refi or HELOC?

 Here are my options: 

1. Sell house and get new house and new investment property.

 If I sell our house I would have $200k. Put $75k on our new house and have $125k for investment. House mortgage would be about $1,800. Investment, the cash-on-cash return of 6% (typically around my area) that’s about $7,500 in income. 

2. Refi $75k, keep old house as rental, and buy new house to live.
If I refi and pull $75k for new house. My new refi is at $185k @ 4.5%. Mortgage would be about $1,200. I can rent my house for about $1,500 but with other expenses such as property management. I would probably break even or have a slight negative cashflow. 

3. Pull HELOC of $75k, keep old house as a rental, and buy new house to live.

For HELOC, pulling $75k @ 4.75% for 20 years is $485. Add my current mortgage of $1,200. That's $1,685. Rental income is $1,500 and other expenses. This is definitely a larger negative cashflow.

Are my numbers reasonable? Am I missing anything and are my calculations correct? If so, should I go with option 1?

 Here are my options: 1. Sell house and get new house and new investment property If I sell our house I would have $200k. Put $75k on our new house and have $125k for investment. House mortgage would be about $1,800. Investment, the cash-on-cash return of 6% (typically around my area) that’s about $7,500 in income. 
2. Refi $75k, keep old house as rental, and buy new house to live 
If I refi and pull $75k for new house. My new refi is at $185k @ 4.5%. Mortgage would be about $1,200. I can rent my house for about $1,500 but with other expenses such as property management. I would probably break even or have a slight negative cashflow. 
3. Pull HELOC of $75k, keep old house as rental, and buy new house to live For HELOC, pulling $75k @ 4.75% for 20 years is $485. Add my current mortgage of $1,200. That’s $1,685. Rental income is $1,500 and other expenses. This is definitely a larger negative cashflow. 
Are my numbers reasonable? Am I missing anything and are my calculations correct?  Should I go with option 1?

I would like to get into real estate investing but not sure which situation would give me a better return. I have a house in City ABC. I owe about $115,000 @ 3.25% with 12 years remaining. The house is worth about $320,000.  We plan to move to City XYZ. Should we sell the house and take the money to buy a new house for us to live in and find an investment property OR pull equity out and keep my old house as a rental and buy new house. If I pull equity out should I do a cash-out refi or HELOC?