All Forum Posts by: Kelly Kormos

@Ryan Proffit at this point I do not have a way to pay off primary- not enough equity for a cash out refi to pay off $150k but I do have that in my primary to pay off rental.  I could probably get about $70k with a cash out refi on the rental and then work to get the other $80k to pay off primary but that would not happen right away.  Have some but not $80k...anything I am missing that I could do to make this a better scenario with the numbers I have mentioned here and in the post??  Any other avenues I should explore?

@Costin I. I asked my lender about refiing that one in general and he said it was just the primary market that was seeing rate drop- wouldnt do much and we only about have about $100k equity in the rental so with 70% LTV for cash out refi about $70k and we owe $150k on primary. I didnt see much we could do unless we set on the $70k for a bit as we gathered the remaining $80k to pay off primary residence. Am I missing something? I hope that I am because I love that idea! Thanks!!!

Hi BP- 

I need some advice.  I have reached out to my CPA and lender but wanted to see if anyone else has done this and if it would a long term smart decision.  or if anyone can offer any insight that might help us make the right decision for our needs and goals.

Primary Residence:  Value- est $400k, owe $150k, Interest rate- 3.65%

Rental Property:  Value- $225k, owe $125k, interest rate 4.2%.  Rental amount monthly $1425

With rates being lower now, about 2.75-3% for what we have discussed with our lender on primary residence, we are thinking about doing a cash out refi on primary to pay off rental and roll it into 1- lowering both interest rates.  (if do not get enough from cash out we will pay the rest with our cash???)

Is this a smart decision?  Concerns are increased income tax on the rental income.  Will that negate a better return/lower interest rate or worsen our cash flow?  

We would like to eventually own a small apartment building as well and have any properties we own paid off so if we are going to try and pay it off early does this lower interest rate help with increased income taxed on rental?

Any thing else we should be considering or looking into to determine best use of funds?

Thank you for your help and advice.  And if additional info is needed to assess this or clarify, please let me know!!  We just want to make a smart decision with this investment.

@Jack P. this is what i'm talking about!!  I know these things but sometimes when I get in the heat of things especially with something I have not done before, the things I have read are not as easily recalled.  Doing is better than reading lol.  I am adding the items I do not currently have on my due diligence lists for items to review or investigate!  I did not out financials in the contract but during inspection period I plan to ask for all and few other items for review.  I have not bought an occupied property before and that seems to be were I am making the most mistakes.  Live and learn.  and 100% agreed on home inspection.  That is already scheduled and taking place on Monday!!  Thank you for your detailed response!

@Michael Kistner- this is a great blog- thank you!!!  I believe we have actually found a wonderful PM based on recommendations from bigger pockets members but I think it is still good to know what to look for in case there are ever changes.  It is separately metered for utilities and 2 water meters so 1 rent covers water.  

Hi BP!  My husband and I just went under contract for our first Multi Family property (triplex) AND it is another part of the state where we do not live! (first time buying outside of our area as well)

I would love to hear what items we need to add to our checklist for the due diligence period for a MF/Triplex and for looking out of town. 

Any and all advice welcome!  

Thank you!  Kelly

@Claire Trammell I do not know why I am just now seeing this notification 2 months later but I am pming you now.  Thanks!

Is anyone in or familiar with Macomb IL?  I searched BP but no one had this area listed.  I am looking to speak with someone here about rental properties and the area in general!  Thanks

@Tom Shepard great idea!  Thank you!

@Devan Mcclish I will consider this.  thank you!

@Andrew Johnson Nashville has gone crazy in a good way for sellers but the market to find good rental properties is pushing many out- out of middle tn and of the state even.  I normally would have never considered this area but when someone you know is selling and just wants to get rid of them bc she doesn't handle them and her husband passed, then I want to at least make sure I am doing my due diligence and not missing a good opportunity.  I do agree that it will have to be crazy good and some signs are pointing to that esp if I could possibly do owner financing.  Just making sure I am reviewing all options before shutting it down or pulling the trigger.  

@Brian Adzadi I am going to be calling some agents!  I will do some more googling and see what I can pull up from the local publications!  great idea.  I have looked at city-data but did not peruse the forums.  I will do that as well.  If we like what we see from this fact finding then we will be going to visit!  I am actually most concerned about the PM portion.  From a conversation i had with someone there recently, does not sound like there are any PM management companies there.  They have PM companies but they say they only manage their own properties.  Looking into this some more too.

Thanks everyone! 

Hi BP-  Advice needed: I am reviewing 3 properties in another state for buy and hold. I do not know much about this area yet. A friend of mines parents have owned the properties since 1990. They are selling b/c her father passed away so I am trying to do as much research as I can and not put too much on her mom during this time. Can you all let me know:
1. What would you do to better learn the area, the rental market, the stability of the area, etc...to assess if buying property here a good idea...they are 7.5 hours away so want to do as much due diligence as I can before driving to see the homes and the area.  
2. Also, I have never worked with a property management company, so what questions would you ask them???

Thank you so much for your help! I wish these were local but don't want to miss an opportunity even if 7 hours away!   My local market not so good for finding good buy and holds right now...

Have a great day!!