All Forum Posts by: Jennifer Drew

@Joshua Smith That's awesome!!

@Curt Davis I've heard that some banks will loan 90% LTV. Is this your experience? Also, yes, I do need to live in the duplex for one year, which is why I said I wouldn't do the HELOC until next February once I move back to the four unit. Also, I see you're in Memphis. The other market I'm considering is actually Knoxville, since I went to UT and I'm familiar with the area. Thanks for your feedback!

Hello everyone!

I currently own two multi family properties. I have a four unit, and a duplex. I just bought the duplex two months ago with an FHA loan, so I will be living there until the end of January, and then moving back to the four unit building.

I bought the four unit in 2013 and rehabbed it for a total loan amount of $459,000 and I have refinanced it to a conventional loan, and the remaining balance is around $445,000. The property is  worth somewhere around $750,000 and perhaps a bit more. This leaves me with approximately $300,000 in equity. 

I am wondering how best to take advantage of my equity. Should I wait until next February when I move back to the four unit and it is my primary residence again and then do a HELOC? Would a cash out refi be better? My current interest rate is 3.75% on a 15 year loan, so I feel like this option might not be great because my interest rate on the new mortgage would be higher, and I only have 14 years to go now on this mortgage (but then again I'm new so if you think this is a good option please tell me why)!

Most people in my neighborhood have seen an average of $100,000 in equity per year if they've bought in the past five years or so. But prices are high so if I want to buy here, most of the equity will be used towards the down payment (am I allowed to do that?) Or would I be better off going to another market where I could purchase several multi unit properties with the equity that I have (they will be cash flowing properties, but not have the same potential for equity growth as my current neighborhood).

Hope that I've explained everything clearly enough! I look forward to any advice or recommendations that you all have. 

Cheers,

Jen

@Joshua DuBois I just had my agent set up an MLIS search for multi family properties. But I'm sure there are a million other ways to find properties in the area. 

@Deirdre Brown Thanks so much! I would definitely love to hear more about how the process works

@Kadian F. You're definitely right about that! It seems that everyone I know that has bought in Trinidad in the past 5 years has averaged $100,000 in equity per year. Not too shabby. 

@Elizabeth Nourse Thanks! Just trying to figure out how to invest wisely for my next property, and see what will end up being the best move for me. I have a fair amount of equity, and just need to figure out how to turn that into more profit =)

Hi @Tracey Hill

I live in DC, and own two multifamily properties in the Trinidad neighborhood in NE DC. Are you planning to buy something and live in it? That's what I've done, is gotten FHA loans that require them to be owner occupied, and so it is less cash down. Also, don't forget to factor in the cost of property management if you buy something that is so far away!

I hope it continues! There is a four unit condo next to the duplex I just purchased. Both were renovated by the same company, and have the exact same finishes on the inside (right down to the paint color). The condos went on the market a week ago for a pretty penny, so I would love to see them sell at asking price (which would help me out in the equity department). 

Thanks everyone for the good ideas and support!

Sam- I probably know the guys you hired =) It's a pretty small community so everyone knows everyone. Glad you had such a good experience!

Mark- I haven't looked at the Learn section yet, so thanks for the pointer! I will definitely check it out. 

Matt- Thanks so much! As much as my friends all thought I was crazy when I started, those same people are now coming and asking me for advice.

Upen- Can you tell me more about what you mean by 10 conforming loans?

Thanks Maurice!

Thanks Matt, Russell and Shayne! 

Russell, I was not familiar with the Fannie Mae refi option so I will definitely do my research on that. And I'm glad you agree that it is a good idea! The two properties I have now I definitely want to hold on to for long term passive income, but I definitely am ready for something a little more adventurous to put some cash in my pocket. There is a four unit next to my duplex that was renovated by the same investors. They sold the four unit for $700k, and now the guy is turning around and selling them individually for $300,000+!! And his property looks exactly like mine with very basic materials used (and the grossest wall color ever but that's not the point). Every way I've run the numbers in my head, doing a condo conversion just makes sense. 

Shayne, I would definitely love to chat more about condo conversions! I've heard that its a pain in the butt paperwork process, but at this point I'm good friends with the people at DCRA (I say that with all the sarcasm in the world), and am slightly familiar with how things work in general over there. Someone told me the whole process costs about $15,000 in fees, is that correct?

Thanks again everyone for the ideas and support!

Jen

Hello everyone!

My name is Jen, and I am slowly getting more into the world of investing. I started off as a teacher for Deaf students, and now I work full time as a sign language interpreter. This has led me to a niche market in DC, right next to Gallaudet University, the only university for the Deaf in the world. 

I currently own two properties (just closed on the second one two weeks ago!) both within walking distance of the university. The first property is a four unit building that I bought as a foreclosure (it was actually a duplex and I converted it back to a four unit which was it's original design), and the second property I just bought is a turn key duplex. All the apartments are two bedroom, one bathroom. 

I have made my properties with Deaf tenants in mind, putting in strobe light fire alarms, and doorbells with strobe lights as well. My tenants tend to be faculty at the university, or grad students, and they appreciate having a landlord who can communicate with them in their primary language, and I've had a really great response from those who have come to view the apartments.

The neighborhood I'm in is rapidly changing, and my first property is already worth more than double what I bought it for. I am considering different options for my next project, but think that I want to buy another multi family property in the same neighborhood to convert into condos and sell individually. I currently have an FHA loan on the duplex, so I'm trying to decide what the best option would be for funding my next property. I've considered using the equity on my four unit property for the next project, but would love to hear any feedback on this or other ideas!

Nice to meet you all!

Jen