All Forum Posts by: J Pavao

Hey guys!

Question.

I have two three families going well. I'm ready for the third. The problem is the bank wants a chunk of cash. 20% down plus reserve. For my area and what I'm looking for im short around 20kish cash. I cash out refinanced my three family and have that cash ready to go. They only allowed me to do 70%. I still have a chunk of cash in there. I've been working with my multis for about 7 years now and have no fear of taking a loan for the rest of the cash. My question is.. can I get a heloc for the same house I cashed out of to get some of the remaining money? If not does anyone have any other ideas? I see a couple of potential buys and ready to go. Thank you

@Breanna Collins

Hey Breanna! I bought my first 3 family at 24. People said I didn't know what I was doing. They said it wasn't for me. I'm 30 now and it's the best thing I've ever done. I look back and thank my younger self. Over 200k in equity from that house and ready to buy two more because of it! It also paid for most of my single family when I lived there! Ignore anyone who says you can't do it!! Check out my ig I have pics on there @jpavaorealestate

Hey guys,

Here's the situation. I'm ready to make moves 2021. I've owned a 3 family for about 6 years now. I have 200k equity in it. I did a live in flip on a single which is closing in a few weeks. My offer on another 3 family got accepted and I will be using the money from the single to do a 3.5% fha loan on the three fam.

The next step is what becomes overwhelming.. in a good way. I have lots of options.

1. Heloc and use this equity to buy 2 more 3/4 families

2. Cash out refinance and buy 2 more 3/4 families

3. Sell my first three family 1031 exchange and use this to buy two more three fams... I could then actually do 1. Or 2. And buy another 2 more!

Looking for some guidance here as I'm at a crucial step. One thing to add is that my three family I've owned is in a very good area of the city, great tenants, in good shape, and I truly see will just keep going up. I'm more contemplating between 1 and 2 but see 3 as an option.

My over all goal is live rent free, have atleast $2600 monthly income from rentals and begin selling real estate as a licensed sale person. I've worked construction my entire life.. my goal is of course financial freedom or atleast the ability to comfortably transfer into real estate sales

@Christian Szpilfogel just seeing this thank you for your reply!

Hey Bigger Pockets,

I'm looking for recommendations on tech for the entryway to my second and third floor apartments. I own a 3 family in a tough city (Fall River ma). It's a great neighborhood, but I had a break in a couple of years ago. I'm currently using deadbolts and Arlo battery charged cameras. I'm looking to upgrade without breaking the bank. I'm going to have new doors put in. Curious what you guys use for the main entrance staircase entry. Electronic key pads? Should I stick with Arlo and try their solar chargers? Is there a good brand worth getting wired in? I do not live there so it being streamed to my phone is what I need. This is a general access entryway: guests, pizza delivery people, and tenants will be using this. It's only a three family so I'm not looking to go too crazy with anything expensive to buzz people on or anything. Thank you in advance and happy holidays!

@Paul Moore great read thank you!

Cash flow now is definitely a goal. I have equity and will have cash from this single fam as well. I bought the 3 fam at 24, the single at 28 and I am 30 now and ready to make serious moves now. I'm a union laborer and am physically beat up. I'm going for my real estate license online right now when I'm not working. If I can have 3 or 4K cash flow (possibly more)a month and sell real estate full time, my life will drastically get better. In the long run, yes I would like to own more but my current goal is to make this a career to get out of construction, my long term goal is of course to become wealthy. Where I get lost is that with the commercial loan, I see no benefit. 25% down at 5% interest with maybe 25 year loan for let's say an 8 unit? When I can get a 4 fam at 2.75% and 3.5  down with fha for 30 years for the first one. Then the other use a conventional 20% down and still 2. Something% interest 30 year loan. Maybe I'm answering my own question haha but I'm guessing it's not worth it unless you're getting a killer deal or buying a property with a lot of units. 

Hey guys took me a little while to figure out how to reply haha. Lots of great advice! Like time said I have more numbers to crunch your input gives me a few more ideas. Very much considering a house hack or two and staying with 4 and under families. Where I'm at now is sell the single and buy a 4. 1031 sell my 3 fam and buy another 4 with a big downpayment. Take the equity from that house and buy another 4. Very excited for 2021 and to be a part of this group 

Hey guys. My head is spinning on the next step. 6 years ago I bought a 3 family. I currently owe 212k on it and it's worth around 400k. I'm selling my single family house now that I kind of did a live in Reno on. All said and done I'll have about 50k in my pocket. In my area I could probably find a 6 family for 500k. This is where my head spins.

After paying the realtor and using a 1031 tax exchange I could have 170k to put down. With 50k I have in cash I could use 30 of it to put down also. This puts me at 200k

With 25% down I could buy up to a 800k property.

The problem is I know nothing about business loans. With rents around $1000 a unit on the safe end in my area I want to make sure I can have good cash flow. I'm already making 1,200 a month profit on the three.

I either go this route or mess around with 4 unit and under properties

I'm new here and lots of inspiration so if anyone has any knowledge or ideas I'm open to them thank you!

@Whit B.

Pretty funny this is almost my exact circumstance. Owe 218 on my house I bought 6 years ago and it's worth around 400. With the heloc you should be able to take out 80% which is 112,000 no? You can then use this as a down payment. I'm looking to find a 6 family in my area for around 550 and do this and should have cash flow.