All Forum Posts by: Jeremiah H.

I appreciate all of your inputs and please feel free to carry this conversation on, I'm loving it! There is zero chance that I will owner finance the house. I'm not interested in that arena of real estate at this point. 

Originally posted by @Laurie Johnson:

Do a lease option require atleast 20-30K down and lease for $1500 month. All bases are covered. House is "sold", mortgage is covered and you have money to work with.

Good Luck and Successful Investing

 In that situation I would have 20-30k to work with. If I sell it I have 90k and if I refinance I have 50-60k. Don't you think getting more out is a better option? 

@Jon Q.

To your point about not selling houses unless it meets those criteria. I buy house that meet roughly the 1% rule. In my area they aren't everywhere, but they are out there and in good neighborhoods and come with quality tenants. This house at it's current value no longer would meet that rule with a refinanced loan. If we refinanced up to 180k we won't be anywhere close to $1800/month in rent. Which would now change my theory on buying the home if it was available today. So selling it to myself wouldn't make any sense, correct? 

Using real numbers, I believe I can sell it and walk with 90k minus 7k in capital gains tax. I can use that 83K to purchase just shy of four $110,000 properties with 20% down on each property. Getting 1% return I would be receiving $4400/month in rent, have 4 appreciating homes, and still maintain 20% down on all of them. 

If I refi up to 80% I can pull out $54,000 and avoid capital gains tax. With that I can purchase two $110,000 properties and have $10,000 left over to work on the third. I would still own the original home and be collecting $3500/month in rent.

Do these numbers seem logical based off using the numbers I know to be correct in my area for rents and home values?

@Christopher Telles @Vincent Polisi@Jon Q.@Brian Gibbons@Michael Leffelholz @Jean Bolger@Mark Elliott

Thank you for so many great responses. I wasn't clear in my original post. I purchased the house 3 years ago, but I moved out after a year or so. It has been renting for almost 2 years so I don't qualify for the 2 out of 5 year primary residence exemption. 

I have a meeting Tuesday with my CPA to discuss this and other topics. 

I believe my main error was I was hung up on this great rate of 2.99% and you guys made me realize that giving that up and going to 4.99% isn't the end of the world because I'm going to take that equity and make much much more than 4.99%. 

An issue that is making me lean more towards selling it is that it's not an ideal rental. I can't get anywhere near 1% return and I'm getting that on almost all of my other rentals. If I didn't already own this house I wouldn't buy it as a rental, so why not sell it and go buy houses that fit my criteria?

Something that I want to make clear is real estate isn't my main source of income so I'm not as cash flow driven as a real estate only investor. Not sure if that changes any advice you guys and gals might give. Thank you all so much!

Originally posted by @Michael Leffelholz:

@Jeremiah H. what about seeing if you can get a HELOC.? Good luck

Michael

I haven't been able to find anyone that's willing to do a HELOC on a rental property. Am I not looking hard enough?

I purchased a SFH for my primary residence about 3 years ago via short sale. Purchase price was 133K, I put down 20% with a 2.99%APR on a 15 year loan. I owe around 90k on it currently and it's worth roughly 180k. We have since moved so it's no longer our primary residence. It rents for $1300/month and is a little under market value.

I'm trying to figure out how to use the equity in the house to purchase additional properties. One issue is losing my 2.99APR if I go through a traditional refi. At this point I would probably end up with a 5% 30 year being as it would be an income property and not primary. 

It's been difficult finding someone to take a second mortgage on it so I can keep the 2.99% on the 90k I owe currently. I've thought about selling it since it's not an ideal rental. If I sell it I assume I would have to pay long term capital gains on the roughly 50k profit or do a 1031. 

Anyone have any ideas on what to do with this property? To this point I've only been doing buy and holds and have yet to sell a house.

Welcome. The first thing I did was listen to every podcast and get a perspective from 100+ different investors and hear what they're doing and how they are doing it different. I learned quite a bit about what fit my investment strategies moving forward.

Originally posted by @Daria B.:

Hi @Jeremiah H.

I live in Gainesville and am part of the Invest Gainesville Meet Up. The group was organized by local realtor company and a GC. If you like I can call you and pass along their information for you to vet.

Thanks

-Daria

 That would be much appreciated! 

Working with a family member to get him started in buy and hold rentals and need a realtor in the Gainesville, FL (and west of Gainesville) area to help with MLS listings and property showings.

I will also be part of the process on the advice side. 

Feel free to call me directly at 352-460-2248. Thank you!

I get the codes from my guy. We've been doing business together for a little while and there's 100% trust. It allows for ease of viewing and saves him trips.