All Forum Posts by: Jon D.

In todays market, which is best for investors of both single family and multifamily homes and Why? What areas in each do you prefer?

Thanks!

3.5% on a 10yr fixed or 3.1% on a 7 year fixed with First Republic. 

I do not see as many Duplex, Triplex, and Fourplex properties in Vegas as say Los Angeles.  Is Vegas a good market for such properties? If so, what areas?

First Republic Bank offers great cash-out loans on Commercial 3.1% 7 yr fixed or 3.5% 10yr fixed.   

Thank you for your time and thoughts!

It does seem better to go for a longer payback period. I will definitely look at that option. 

I have been considering waiting to cash-out refi until I have a well defined opportunity or use for the money, but also want to take advantage of the historically low rates.  I am not sure if I should put such weight on a threat of rising rates?

If you are asking the credit question to assess my threat of vacancy, the property is a single-tenant retail building in a high-foot traffic downtown shopping district in a high-income, densely populated coastal community.  The tenants are a small medical business that have been there for 10+ years on a series of 2-3 year NNN leases. They have great personal credit but just a local business. With that said, historically my risk of having a long lasting vacancy is very small. In the 15+years I have owned the property, we do have periods of 2+ years where there is not vacancies(available spaces) in the immediate shopping district), then suddenly have a period where a bunch seem to pop up at once. But all are re-rented in a few weeks at a rate much higher than I am currently charging. So I sleep fairly well at night. That said, none of us really know what is waiting for us around the corner!

Thanks again for your comments.

I own a single tenant commercial property that I bought 15 years ago is now owned free-and-clear. It is in a hot area and has since appreciated 5-6X since I bought it. CAP rates in my area are fairly low (4%) so it is not spitting off the cashflow I could get if I pulled some equity out and reinvested. This is what I am considering.

At this stage in my life, I am debt free but am thinking of picking up debt as I have too much net-worth in one spot and I am not using any leverage. My local bank offered me a cash-out refi at 4.9% on a 7 year ballon/30 year amortization. I am considering taking this and using the funds as down for one or two multi-families or do some note investing and arbitrage the difference between the bank rate and the note yield. I would be taking out approx 30% of the equity so would not be over leveraging.  First, any thoughts or suggestions so far?

Also, I think rates are still very low so if I am going to do a cash-out refi at some point, now might be the right time (lest year would have been better).Thoughts?

Lastly,  I would not want to have pressure to reinvest until I find the right opportunity but will have those lofty monthly bank payments.  Are there any safe, short term places to park a nice sum of money in todays market that can come close to or exceed providing 4.9% return? My assumption is no, but I want to test that idea with y’all.