All Forum Posts by: Kimberly Vallance

@John Underwood

Yes, I realize having $50k in equity doesn't mean I can pull the full amount out. However, if I refi to pull out as much cash as possible, I might be able to pull out about $30k if I can get the mortgage for the full 80%LTV. I think that would more or less reset the mortgage to when I originally took it out, but I would have the cash to reinvest in other units. Right now, that one unit is paying for itself and in about 13 years will be paid off if nothing changes... I wonder if I can reset the mortgage, lower the equity position, and have cash to invest in more real estate or am I being too greedy.

I'm checking if there might be other options than sitting on that equity. If there is a bubble here, and if it does pop, I'd like to be positioned to invest in more doors. Right now, I feel I might be limited keeping the equity in that house stationary. That being said, it is paying for itself, so leaving everything as is isn't a bad decision - it just might not be the only decision available.

Last time I checked into a refi (a couple years ago), it would have cost me about $3k and not provided any benefits. Now, if I can pull out even $10k (net) it would provide me with the funds to invest in another property.

@Todd Powell

The house is located in Westland, MI. I am open to investing anywhere there is opportunity, so I didn't post location. However, you make some good points about those funds meaning different things for different purposes - I could outright buy some properties and not even make the down payment on others.

i would lean toward favoring something within around 100 miles of detroit or dallas as i know those areas fairly well. i'd also lean toward multi-family especially if i could house-hack one of the units.

...also, i was underwater for 15 years!

Hello REI's

I've got an opportunity, but my emotions are tugged. So I'm asking for some insight from those less attached.

I'm finally no longer underwater in the very first house I purchased. I bought it before I knew anything about REI, it was my first non-co-signed purchase, and it was my main residence. I've had it rented out for the last 5 years at the max the area will tolerate. It is cash flowing...$14/month. It's a classic starter home for the area, so there's nothing great or horrible about it.

I'd like to cash flow...well, enough to do something more than eat lunch once a month. The great thing is that in the last 12 months I've gone from no longer underwater to $40-50k in equity. This makes me think there is a bubble here that is going to burst soon - especially looking at some of the sales in the area. I've gotten comps from a REA, and now I need to decide what to do.

So, what would you do and why? Refi? HELOC? Sell outright and reinvest in more doors elsewhere?

Welcome!

Look up your local real estate investment groups. There are some really good meetings locally where you can get some good information as well as network with people actively investing. You can ask questions and learn about deals other people are doing so you can learn what they are looking for. Then you either do the deal or bird dog it (find it then offer it to another investor for a finders fee). rinse and repeat.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

This is in a neighborhood I'm very familiar with as it is two blocks from the rental I already have. What pics are available along with the realtor blurb suggest little/no repairs needed, though I'll definitely schedule a walkthru to make sure there's nothing major needed.

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*This link comes directly from our calculators, based on information input by the member who posted.

Property has been on/off market for about 8 months - they seem to let the listing expire then relist it so the days on market is skewed. I haven't been able to visit the property. Should I be overly concerned with "AS-IS"? Repair estimate is a total guess as there are no interior pics available. Seems almost too good - what am I missing? Any and all negatives or concerns you might see would be helpful. 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Dropped $40k from asking price. Property listed for 13 days and already owner has dropped their own asking price by $10k. Pictures are not very good, but show wear and tear from 20-years' ownership - walls nicked and scuffed, doorways same, stair banister needs sanding and new stain at minimum, basement dark and unfinished. Location very good.

My lease agreement includes a contact in case of death or serious illness. I make sure it is updated at every renewal. 

@Jesse Kreun

Thank you for your story and questions. There's some interesting advice here. I agree with those suggesting digging into the numbers - look at each quarter, then compare them. Is there a quarter that has high turnover or unusually higher expenses? Then compare them year over year - are the numbers generally all the same? If so, either they are not the deals you thought they were or the property management needs tweaking.

Have you tried running these properties through the calculators here on BP? That might give you some insight into which property(-ies) to consider keeping and working on further, and which might just not be good deals. 

Hopefully, you can turn at least one around, then find better deals going forward.