All Forum Posts by: Jorge Galvez

Hi BP'ers: 

I am thinking of selling my multi-family with potential upside of $100k equity.  The decision I get to make is do I sell with 1031 exchange to obtain a four unit property and build wealth by moving into more doors or sell my 3 unit that is only breaking even?  The upside that I see is that I can move into a four unit and add value to it and reach my goal of starting in commercial property.  However, by keeping the current property, I can potentially make one unit into an airbnb and increase the cashflow.    What should I consider when making a decision?  Sell with equity or keep property? 

FYI - this is my first multi-family and my goal is to build wealth.  If I keep my 3 unit, it might take longer to reach my goals of owning buildings and starting with the first 4 units is a start.  

I know a lot depends in my case, but I would like to request your thought on what I should consider when making my analysis.  Thank you.

Jorge

Hi @Brock Malinowski, I have a team who does everything from finding deals, rehab, property management.  Are you looking to buy and rehab or turnkey or just property management? 

Jorge

@Gregg Kaufman, I'll PM you, thanks!  It would be great to connect and gain your insight.

BRRR is a term coined here at Biggerpockets. Maybe you're already doing it. Basically, my plan is to pull equity (HELOC) from my current investment, apply that strategy: Buy another property (maybe two), Rehab it, Rent it, and then Refinance it as soon as I can and as soon as banks can refi so that I can pull my money out to pay back my HELOC on my current investment property. Then I will have my rented property refinanced with its own mortgage(s) and I can repeat the process.

@Andrew Postell, thank you very much for your advice on what to look out for! Based on your input, I will make sure to ask how the LOC would be set up with the "newly refinanced" mortgage, even ask them before I start the term/rate refinance with them so that I don't get through the refi only to find out something different.

@John Warren, thank you for your input.  Wow 90%? So far I only found up to 70% in California.    

With a long term debt through cash out refinance, I would be paying interest right away. The reason I am going with a HELOC is because it will take me some time to find out where to invest my money - I am thinking June time frame. I am also planning on using the BRRR strategy once I buy two rehabs and refinance to pay back the HELOC. My plan is to pay the HELOC back so that I can keep my mortgage the same on the my current investment property, which I plan on holding for a long time. Do you see any flaws with this approach versus going with the cash out? Thank you - much appreciated.

Hi BP-ers - 

I am located in Los Angeles, CA.  I would like to ask for your advice. 

I am looking to refinance a non-owner occupied investment property to obtain a lower interest rate. However, now is a good time to also pull out equity to invest in other multi family out of state. Not all banks offer a HELOC, only a select few like Wells Fargo and some other smaller ones in CA (Union Bank).

What is the best strategy when trying to do both refinance and obtain a HELOC? Refi / obtain HELOC with the same bank simultaneously or can I first refinance with a bank with the lowest interest rate out there that I can find and then as a step two, obtain a heloc with the banks that offer the HELOC? I assume it is easier doing it with the same bank and I also assume it is cheaper, but I could be wrong. I do want a low interest rate first and obtaining a HELOC would be secondary to move on my investments.

Thank you very much.

Jorge

@Ryan S., thanks for this information. I did not know that I could not get a HELOC on my rental property. I am getting ready to refinance and my main objective is to obtain a lower interest rate, thus lower my payments. On top of that, I would like to pull equity, but I am not ready for cash-out and increase my mortgage. My ideal plan is to use HELOC for other investments sometime in 2018, use the BRRR strategy, and pay back my HELOC.

Just registered! Looking forward to meeting some of you there!

-Jorge

Are there any issues anyone has experienced with renting to a young married couple.  Guy is 24 and girl is 20. Guy has an associate's degree and works two jobs. Girl works two jobs. Mom would like to move in with them as well. Combined income meets requirements. Well spoken and appear reliable during the interview.  They have gone above and beyond to show interest and demonstrate that they could be good tenants.   Just wondering what kind of pitfalls to look out.   Any advice?   

Hi,

I'm interested in learning how to assess deals and jumping in and buying a multi family unit of about 5 units. This year it will happen.