All Forum Posts by: Brandon Allenczy

@William Wilson, great point! It might not make much of a difference it I could only get a tiny bit out relative to the cumulative cash flow of such low interest rates over the next few decades. I think I might do what I mentioned above. Collect the little cash flow that I'm getting now, and if the market is in good standing a year from now, I could sell it to buy a much better deal and use that one in the future to buy more property. 

@Jaron Walling After thinking about it though, I could do what I mentioned above on a better deal if I sold it. I could sell it, buy a great deal, and get THAT cash flow while using it for years to come to buy other properties. Real estate is awesome.

@Jaron Walling, totally makes sense. I do intend to hold nearly everything I buy from here on out indefinitely. So I was looking at it as a tiny "savings account" that pays a slightly better return than banks would, and I can keep utilizing a HELOC on it for future purposes. May not cash flow the best, but it's a great swiss army knife to keep buying other good deals in the future. If I sold it, I could buy 1 great deal. If I hold it for 30 years, I could keep getting that cash flow and using leverage on it to buy multiple great deals.

@Jody Sperling

Great to know, thank you! And no I've never heard that term so I'll start researching now! I feel like I keep getting chased by the shiny object of more cash flow, but what we really need is more (healthy) leverage like a HELOC to help us keep the ball rolling.

Thanks again!

Hey BP community!

Looking for some advice on a unit I have in Wilmington, North Carolina. It's a SFH that cash flows somewhere around $75-$100 per month. It wasn't purchased to be a rental but we turned it into one. I have the option to do a refinance on the property and drop our interest rate from 4.375 to around 2.5%. It looks like this would give us somewhere around $150-$200 extra in cash flow per month. We don't have a ton of equity in this thing so we're not looking at pulling any cash out; the only benefit would be the lower interest rate/better cash flow.

The original intent was to keep getting loan paydown/equity over the next year and find a lender to do a HELOC on it as an investment property. I talked to a lender earlier this year that could do it but we didn't have the equity so I figured I'd wait a year and try again.

If we go through with the refinance, won't that drain the equity along with any hope of using a HELOC a year from now? Would it be wise to forego cash flow NOW for the hopes of a HELOC later? I would hate to miss out on an extra $200/month and then get to next year and find out lending requirements have changed and no one can do a HELOC on an investment property.

Thanks for your insight!

@Benjamin Seibert, totally makes sense. Thanks for your input!

Good morning everyone. Just trying to learn about my new market and train my eye for good deals. If any of you are in the Hagerstown/Frederick/Western Maryland market can you take a look at it and let me know what you think?

Just FYI this property is NASTY. It would need to be gutted and redone. 1 bed/1 bath, 672 Sq ft off of Georgia Ave in Hagerstown, MD

Purchase Price: $25K

Rehab: $40K

ARV: $80k

Net Profit: $9,400

(Sale Price - Transaction costs (7%) - Initial Purchase - Rehab)

ROI: ~15%

Thanks everyone!

Hey @Brent Coombs. I get what you mean; I calculated it based off the net money going into our pocket each month instead of total rent since that's what actually make the difference from a personal finance perspective. I'm looking at it as the net benefit of doing the house hack as opposed to keep renting; hence the savings from not paying our rent and such. If I calculated it based off gross rents it would actually be a higher return (over 100%). Thanks for your input!

Thanks @Jordan Lockaby! This is in Hagerstown, MD. It's a smaller mountain town on the outskirts of the DMV. It'll be a separate unit! I see you're in Asheville! We just moved from there to Silver Spring. We miss Asheville like crazy. What are you thinking about doing to get started there?

Hey BP! After grinding for a year, my wife and I FINALLY were able to purchase our first house hack. I think it's a pretty sweet deal for the first property we've ever purchased as an investment. My charts below basically just show the total savings per month we get from not paying our previous rent ($1710) - our new housing payment. The reason I have 2 charts is because there's a current lease on the other unit that is WAY below market rent ($1100-$1200). Once that's finished in April we'll begin renting out the other unit for what it's actually worth. I estimated 5% Repairs, 5% Capex, and 7% Vacancy. Let me know if you have any questions!