All Forum Posts by: Lars Henrik

Hi All, 

I own a rental townhome in San Jose, currently vacant as I was in the process of selling it. My tenants moved out today (6/15/2015). The market is super hot so I should get at least 20% over what i paid for it. My plan is to invest in better cash flowing properties with the proceeds, I was not cash flow positive on this house. (I live in an apt in SF right now). 

I was going full speed ahead to sell it, but then I thought why not continue renting it out, and get a line of credit and invest the proceeds into cash flow positive investments? 

The numbers: 

- Owe 418k on the rental house (it used to be my primary home) 

- Market value is probably 650k (my neighbor's house, exactly the same sold for close to that amount) 

My thoughts are - getting a line of credit and using that to fund new investments will just lead to lower cash flow per month as I'd be paying interest on my line of credit and and any other loans. 

I also saw this post and it seemed like more of a hassle, and higher interest on the rental equity line of credit versus a primary residence. 

http://www.biggerpockets.com/forums/50/topics/1133...

Your thoughts? What other numbers/factors do you recommend I look into? 

Thanks!

Lars

Thanks Brandon Turner.*

I've read the suggested articles and appreciate it.
I'll be all over the site, plotting my next move.

~Lars

*Finally figured out how to tag people in comments.

Thanks Kyle J and Alberto Furet.
I appreciate the advice, great to hear from someone from a similar situation. Right now I'm managing the property myself. Will look into a home warranty. The building was built in 1981.
Can't wait to learn more.

Hi there BP folks,

A little about me... I own a town-home/condo in San Jose (Willow Glen neighborhood), and just leased it out. The home was my primary residence for five years.
After researching local rents, learning about property management, joining the California Apartment Association, I decided to rent it out, and make that my first foray into real estate investing. I'm almost breaking even with the rental income. My tenants are awesome so far.

Aside from that, I work in high tech full time. I am very intrigued about pursuing real estate investment as a new income source. I'm primarily interested in buy and hold income properties. Prices in Silicon Valley are ridiculous, so I'm researching what markets I'd like to invest.

Honestly, just making the decision to rent my house, and then following through crossed a huge mental barrier for me.

There is a lot helpful information and success stories on this site, and I can't wait to learn more

thanks,

Lars