All Forum Posts by: Kevin Coggins

Quote from @Andrew Frishman:

Just some feedback for the group regarding AHP fund investment.

I Invested in AHP fund. November of 2020

I have been requesting my funds back since 07 / 2023 (see below)

I haven't received a distribution on my investment since July /2023.

Every time i call to get my funds returned, they say..."sometime next month", for the last 4 months!!.

 They've been doing monthly updates via webinar and the info you're being given definitely isn't accurate. Basically, they have no liquidity and are working to resolve this (like they have been for awhile now). 

Anybody having luck getting a solid answer about the previous note funds? 

Really yall can work out whatever you want as his interest, it doesn't have to be equal to his dollars put into the deal. But if he's at 10% interest, and doesn't contribute to the 15k renovation, he should be at 5k/65k or 7.7 aka ~8% interest.

I've never done the calculations, but sounds like the pre-payments on the mortgage end up saving more than the interest. Also, the HELOC interest is deductible so could be advantageous for taxes.

 I just meant as far as whether I buy or sell it and the way I'm thinking about it and looking at the numbers. Sometimes when your in the situation its hard to take a step back and analyze adequately. I have no emotional attachment to the house at all, we've lived in it just under 2 years.

I think either option could work out for me in the long term

 Is that $300 including principal pay down? Also, we would be self manage the property, so the cash flow would be a little better. I think we'd be okay doing either too though.

Before closing costs we'd probably be at about 50k in equity. I don't remember if it's October or November, but pretty soon we'll be hitting year 2 of the homestead to get our capital gains tax free. 

I'm obviously going to have my own emotions attached to the decision, so I'd like to ask what others would do if you're in a similar situation. My wife and I have both recently changed jobs, and where we currently live just doesn't make any sense (45+ minute commute each way for both of us). Our house is in Spring, Tx and with the growth that's been going on in Houston, I really think the long term housing market is pretty solid.

Monthly Expenses:

Mortgage Payment - $1,042.85 (Includes P&I, Insurance, and Taxes)

HOA Dues - $45

Repairs/Maintenance - $257 (Roof, HVAC, and Water Heater are from 2016 - plumbing is all galvanized)

Property Management -  $160

Total Expenses - $1,504.85

Estimated Rent - $1,600

It's a pretty thin estimated monthly margin of $95. But one of the main positives, is that the rate on the loan is at 3.625%.  If you factor in principal payments in the equation, I'd be looking at $338/mo as of right now.

On the flip side, I'm pretty sure on a conservative estimate, we could sell our home at 175k, possibly as much 185k. After closing, I'm not sure we'd be doing much more than breaking even. 

We are in a decent enough financial position so that we don't have to sell the house to put down a solid down payment for the next house. I'm sure I've left out some details so please let me know else is missing from consideration!

 It wasn't an intro rate, I was actually at 1.15% and noticed their rates bumped up so I asked their customer support and they adjusted my rate to 1.85%. I see what you're saying though, that's odd on their website it shows it like that. If you search "Salem Five Direct", you will be able to get the 1.85% rate (my login is just on Salem Five).

Anything I don't plan on using the near future, I just throw into Index Funds.

Salem Five Bank pays 1.85% on their savings account..been using them for 1-2 years with no issues.