All Forum Posts by: Kenneth Peagler

well, let's say it's $300k. a refi at 70% of value would give you $210k in a loan and an estimated mortgage $1,140.10. (according to the BP mortgage calculator based on a $210k loan over 30 years).
you factor in 5% for repairs, 5% for Capex, 5% for vacancies. (shooting from the hip here) 15% total.
so $1500 income. take out 15% is $1,275. take out the mortgage of $1,140.10. you're looking at a POTENTIAL $134.9 / month income.

I don't know your goals or your vision for your future. 1031 exchange is possible. sell the asset, roll it into a larger asset and defer taxes. but as Kevin stated, that large of equity renting it out would be massive liability. 

@Kenneth Peagler, you inherited it at the stepped up basis (current value). So, if you sell it you aren't in for a big capital gains tax bill. A big plus.

If you refinance a $300k house and rent for $1500 you will likely be losing money each month.

If you rent without refinancing you have a liability out there in case someone sues you because you have so much equity. Also, your equity isn't working hard to bring home cashflow.

If you are serious about having rentals, I would probably sell and look to buy good cash-flowing rentals with the proceeds. You can sell and buy over $1 million in good rentals with that property and some mortgages.

Hey @Kenneth Peagler

I'm an investor and a realtor/property manager and we have the same problem. My husband and I have a construction company too but we cannot keep up with the demand so we are always on hunt for other good contractors to partner with. Personal recommendations are the best. I get the BEST recommendations from the facebook investment pages in Pittsburgh. Those are often investors who will only recommend when they have good personal experiences. You do get people pitching themselves but when you see others recommending others those are the best. Hope that helps!

@Kenneth Peagler

This is the best video on how to go about doing it that's online.

How to fix a plaster ceiling

You can buy the plaster washers on Amazon. The veneer plaster is sold for 15 bucks for 50 lbs. He says in the video that you should mix it with some joint compound, he means 25% Easy Sand 45. The fiberglass screening he's talking about is just regular fiberglass screening. I used to like to use self-adhesive wall repair fabric, but it's a lot more money and the fiberglass screening works just fine.

The problem with hiring this out in my area is that there are very few guys who are both good at it and cheap out there, and many if not most of the low-end bidders will screw you on long-lasting quality to get the job done faster. The same crack will reassert itself in five years, that sort of thing.