All Forum Posts by: Justin Phillips

@Austin Eberle My wife and I faced that same tough sell/keep dilemma, and for our rental we decided that keeping it, while retaining access to equity was the best of both worlds. It's been a great decision thus far. We've locked in the access to equity, enjoyed monthly cashflow and enjoyed continued appreciation.
We ReFi'd into a very specialized 1st position Heloc that's tied to a zero balance sweep account. So all of our idle funds and regular checking deposits sit on the outstanding balance and save us a ton of interest cost. All the while it's growing that available line to pull from. When the market turns, we'll simply write a check from our line and start making cash offers. It's great flexibility, and you only pay for that access to equity when you need it.
Might be something to consider if you like the long term prospect of your property.

Are they successful rentals? Cash flowing after CapEx, and in an area where you see potential for further growth?
My wife and I faced that same tough sell/keep dilemma, and for our rental we decided that keeping it, while retaining access to equity was the best of both worlds. It's been a great decision thus far. We've locked in the access to equity, enjoyed monthly cashflow and enjoyed continued appreciation. 

We ReFi'd into a very specialized 1st position Heloc that's tied to a zero balance sweep account. So all of our idle funds and regular checking deposits sit on the outstanding balance and save us a ton of interest cost. All the while it's growing that available line to pull from. When the market turns, we'll simply write a check from our line and start making cash offers. It's great flexibility, you only pay for that access to equity when you need it. 
Might be something to consider if you like the long term prospects of one of your properties. 

Talk to @John Duston 
Always nice when someone is versed enough in REI to be here on BP!

@Daniel Smith There are too many Wal-Marts to really use Wal-Mart as a rule. I know some people like being close to Costcos, maybe a Wal-Mart Supercenter would be similar? 
A Wal-Mart in and of itself is not a bad sign, I mean have you tried their free grocery pickup? Game Changer. 

Agreed, on desktop the forums are much more tedious to scroll through. The forum "backspace" was driving me nuts, I now left click and "open link in a new tab". Updates should make the system more intuitive and streamlined, they went backwards on this one. 

Would this 3rd home be a primary, or investment property? 
Generally, you'll want to make sure the numbers make sense on the property alone. If you're piling all your other cash-flow into it, it most likely won't help you reach your goals. 
Some further context on your plan/goal would definitely be helpful in providing more tailored insight. 

My wife and I have a very specialized 1st position Heloc on our property. It's tied to a zero balance sweep checking account, so all regular deposits and idle funds sit on our balance saving interest until they get swept back out for bills. It's been a great tool for us. Whenever an opportunity arises, we simply write a check from our line, then pay it off very quickly using our depositing power. It gives you 30 year access to equity, but you only pay for what you use. It sure beats signing up for 30 years of interest first amortized debt on a traditional cash-out ReFi. 
In your case, you could have that line of credit set to $280k, but you'd only draw what you needed. I'd definitely recommend checking it out as an option. 

I've never head of anything that allows for access to equity with only a 10% equity position. Having a lower LTV keeps the bank protected in the case of default.
Maybe explore house hacking options as a means to get more cash saved. If you find a good enough deal, there's always hard money...but that would need to be a real can't-miss deal. 

For your condo, based off those numbers, it probably would make the most sense to sell. How many years ago did you move out? If possible, the 2/5 rule would be the best way to avoid those capital gains. The tough piece with 1031's right now is that deals are very sparse. 

For your primary, I'm a big proponent of a very specialized 1st position Heloc, that's tied to a zero balance sweep account. It maximizes flexibility, gives access to equity and increases cashflow. 
If it were me, I'd set one up on your SFR to start. You could set the LTV to 80% of value, so a credit line of up to $400k. That would open many doors, and give you steady access to that equity no matter what happens in the market. Paying simple interest on access to equity only when you need it sure beats locking in 30 years of higher interest-first payments with a cash-out. Plus with that zero balance sweep account, all regular deposits and idle funds can sit on your outstanding balance and save you a ton of interest cost as well.

At 15 years in, you're getting close to the point in amortization where you'll start paying more principal than interest. It would be a shame to restart that schedule and start those payments back at 60%+ interest. 
Maybe consider a Heloc, that way you don't restart that interest amortization. 
My wife and I have a very specialized 1st position heloc on our property that's tied to a zero balance sweep checking account. We're able to park idle funds/deposits on that balance and save interest cost. On top of that savings, we have access to equity, but only pay for it when we actually use it. Might be a good alternative for you, instead of signing up for 30 years of higher interest first payments day 1.