All Forum Posts by: Jon Quijas

Frank Jiang great out of the box thinking. That's why I came to bigger pockets to learn from people smarter than me! I don't have the number with me but will let you know when I get home.

Matt Vogt it is my wife, two kids and number 3 on the way. Hacking M sounds great, but I don't think that is an option. Also, we pay about 2500/mortgage for 3 bedroom 1.5 bath in San Jose which isn't bad. We could sell both and probably walk away with close to 400k before we paid off debt. I would only be open to selling one, waiting two more years and selling another, as I would want to avoid capital gains tax (both have served as our primary residences). Would any one else consider selling condo 1 (2 bed/2 ba)? I often consider this, but keep coming back to the fact that it's a place in the Bay (hot market), give 571/month to us, and the tenants are paying down an asset in our name. It is completely renovated (I know construction and come from a family of contractors) so the maintenance has been next to none so far.

@Jaysen Medhurst Thank you for the feedback. I agree that property 1 was a winner. I'd still be there, but a growing family, calls for a bigger place. As for refinancing, we are locked in at 3.5%. I have considered selling and doing buy and holds in another state. The ROI seems to be better, but I always come back to what a seasoned investor told me about not investing in areas he cannot drive to. I know it has worked for others, but that's my fear.

@Account Closed I actually agree with you. We have paid off a ton of debt, but right now we seem to be overleveraged. The $21K car was one of those "necessary mistakes", as we have 3 kids and my wife's family visits frequently. We bought a van. I keep beating myself up over that mistake, and have even considered trying to get a cheaper van.

No PMI. Condo 1 is locked in at 3.5% and no PMI. Condo 2 is locked in at 3.75 and no PMI. I am absolutely sure I can't go wrong by not saving and trying to make more money. Thanks for the feedback.

Hey Team,

My wife and I are teachers/trainers and novices when it comes to real estate.

We own two properties (1 rental and 1 primary residence) in one of the hottest real estate markets in the Bay, San Jose. Wanting to invest, but have little cash. Open to advice and "What you would do" discussions", as we want to take the next step.  

Property One (condo rental) 2 bed/2bath: (Excellent buy)

We Owe: 215K (approx.) on it

Property Value: 480K (equity: 265K)

Tenants pay ALL of the expenses (Mortg, Tax, Ins. and Hoas) are $1604/month + tenant gives us $571/month (6852/year), as we charge 2175/rent.

Then....

We borrowed off it via a HELOC: We borrowed 30,000 to purchase another home (we owe about 28K on the HELOC)

Property Two Townhome/Condo (Primary that I would like to eventually rent out) 3 bed/1.5 bath: (not too shabby buy) - We got it for 442K, Owe about 410K on it, and it's worth about 530K. Not like the last deal, but not bad, being that we need a place to rent and we own for a little cheaper than what we would rent it for.

My wife and I would like to invest somewhere out of state, and buy and hold a 3rd property. What would you suggest to come up with financing? We have EXCELLENT CREDIT (I am in the high 700s and my wife is in the 800s). Creative Financing advice appreciated as I don't think a Conventional will work:

Review of our situation:

HELOC: 28K

Car Loan: 21K

Condo 1: Owe 215K, but Income of $571/month

Condo 2: Owe 410K

Income of Wife and I is about 100K/year

Visa: maybe 2K

Currently I have a 401K with $9k in it and my wife has a retirement account with $2k in it. We mad a mistake of paying down all of our debt, and we have very little cash on hand, but a whoooole lot of equity.

Looking to gain financial independence and get out of the 9 to 5 I am working that is burning me out and putting a damper on our quality of life. Would you sell property 1 and take the equity and reinvest in tax/landlord friendly states, would you try to hold on to it and buy a 3rd?  

Desperate in CA,

Jon

 

@Jaysen Medhurst 1st mortgage payment is $1322/month. (After taxes, HOAs, Insurance, etc. 1600). We currently charge 2175/month for rent (below market). The HELOC is about 125/month, but that is interest only. I of course always pay more than just the interest.

The % we locked in for 30 yrs. is 3.5% (pretty damn good, I think).

I don't believe (if we sold) we would have to do a 1031 (I may be wrong though), as this was a primary residence 2 of the last 5 years. Feel free to correct me. We have considered selling. Thank you for your help.

Hey Team,

My wife and I are teachers/trainers and novices when it comes to real estate. We own two properties (1 rental and 1 primary residence) in one of the hottest real estate markets in the Bay. Wanting to invest, but have little cash. Open to advice and "What you would do" discussions".

Property One (condo rental) 2 bed/2bath:  (Excellent buy)

We Owe: 215K (approx.) on it

Property Value: 475K (equity: 260K)

Tenants ALL of the expenses + give us $571/month (6852/year)

HELOC: We borrowed 30,000 to purchase another home (we owe about 28K on the HELOC)

Property Two Townhome/Condo (Primary that I would like to eventually rent out) 3 bed/1.5 bath: (not too shabby buy)

We owe: 406K (approx.) on it

Property Value: 516K (maybe more as a  2 bedroom just sold for 510K)

My wife and I would like to invest somewhere out of state, and buy and hold a 3rd property. What would you suggest to come up with 15-20k for a down payment for another property? Pull from the current property (in the middle of trying a refi on the Property 2) if that's even possible? Or would you try to pull from property 1? Finance experts, I appreciate any help that you can provide. Trying to get to that next step and feeling stuck.

Kindest Regards,

Jon

@Mike D'Arrigo & @Chad Hale - a few more questions:

Do you think refinancing makes sense, being that I am already locked in at a 30 year, 3.5% rate? I do have about 28k left that I owe on the HELOC. Should I see about trying to take out more money or am I tapped out? I was originally told that very few banks do HELOC on rentals, and my research confirmed. The max that Bank of the West would give me was 30k. I am currently in a refi for my primary residence, so I am going to see if I can take out 15k or so.

I apologize if these are novice questions. Thank you for your patience. :)

A few reasons @Gene Mattos

1. It's cheap to buy. (One of the places where the return is pretty good).

2. Buy and Holds have done well in KC.

3. There are companies and new developments moving there. (Bannister Mall Area, I have heard)

4.  I have heard from a lot of other investors that they like KC, and it has done well for them.

5. Property Mgmt. seems to be reasonable, affordable, etc.

6. I read somewhere that about 30% of people rent.

I am sure others who are more seasoned in the investing game could tell you more, but these stand out to me. I am still doing a ton of homework on things like population projections.

@Chad Hale I agree! Conservative is best. I am currently renting out my place for below market (long story, being that I had 1 weekend to find tenants or the deal for the second place wouldn't have happened) so I think we are ok even with a correction. Renting it for 2175 , but I am pretty sure I can get 2400. They are on a year lease, set to expire soon and excellent tenants.  

That is great feedback. Seems like the refi may be the answer for the next step. 

Mike, that sounds really doable. I will follow-up with you. Thanks for the feedback. I better get to bed. Long day tomorrow. Thanks again, and I will be in touch.