All Forum Posts by: Jeremy Kuchenbecker

Also, there's worse things you could do than take out higher debt and lock in at these rates.

Gotcha, yea historically that's not a bad rate. In my opinion, I'd ask myself how long it would take to make up the monetary difference between the cash out refi and selling it between all of your sources of income, job, rent etc. If it's going to take a while to get there then I'd look elsewhere at properties for how you can make your money work for you. I like to hold on to properties where I can through any combination of appreciation, forced appreciation, and principal pay down recoup my potential selling fees. Once I do that I'm looking at an apples to apples comparison of where my money could better be used. I just did a cash out refi on one of my SFHs instead of selling it. Rents are increasing, it was a flip that sat on the market for a long time and I've had 0$ in maintenance in 2.5 years with great tenants, so I decided to hold on to it for a while longer vs selling it.

John Thedford went to contract November 9th. I've got a "Compliance and Proration Agreement" the seller has signed acknowledging all "HOA dues and/or special assessments are paid in full to date"

Cash out refi is a no brainer as well vs a traditional refi. It would take almost 10yrs to make back the $15k you would pull out from cash flow

Is your rate that high where you would save $380 by doing a refi? What is the value of the home?

Its all about opportunity cost and time frame. If this is a property you're set on keeping for several years, a cash out refi may be best as you can pay down the closing costs you incur with principle pay downs (and hopefully appreciation). But if you have additional money on hand to scale up and get into something larger, that allows you to consolidate maintenance (i.e. a multiplex in a area giving you a higher return with more simple repairs to the roof and structure) it may be worth it to sell. 

I'm consulting an attorney on this tomorrow but wanted to get additional opinions on this. I closed mid-December on two townhomes in Florida, one of which I was informed needed $1,000 of paintwork as it was out of compliance with the HOA. The notice was served to the seller on October 31st and was never disclosed to me prior to closing.

What recourse do I have?

David Dachtera I'm not an attorney and may be wrong on this point - In order to setup an S corp and show income, as well as pay yourself out of it, you need to 'actively participate' in real estate meaning hold your license and contribute 500 towards your properties.

Love Grant Cardone and his sales training is phenomenal, but he's dead wrong here. It's important to have reserves and cash on hand, but I'd much rather learn from my mistakes on a smaller value home than a larger one. Not to mention I started with $24k down on my first sfh and has cash flowed $500/mo for several years while appreciating between another $30-40k, I would have missed that if I followed his advice and still be behind where I am now.

Great thread! Question: who cares how many units you have? Its all about cash flow! I'd much rather have 20 units cash flowing $500/unit than 100 units at $100/unit. 

Its great people focus on units but business are valued on revenue (cash flow) and that is what pays the bills, not the number of units. Just my .02

Hey Sean, my dad is a property manager with 25 years experience in the Orlando market. If you want, shoot me a message with your contact info and I'll put you in touch.