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All Forum Posts by: Lawrence Paul

Lawrence Paul has started 24 posts and replied 72 times.

Post: Cash out Refinance - High Appraisal = More Cash Out?

Lawrence PaulPosted
  • Rental Property Investor
  • Montgomery County
  • Posts 72
  • Votes 9

Thank you!

The property will still cash flow and rents have gone up so much in my area that my cashflow will actually be greater, despite the Cash Out Refinance, with the next contracts.

They are doing 75% LTV.

I will have to give them a call tomorrow.

Post: Cash out Refinance - High Appraisal = More Cash Out?

Lawrence PaulPosted
  • Rental Property Investor
  • Montgomery County
  • Posts 72
  • Votes 9

Hello again,

So, I am in the process of Cash Out Refinancing my one rental property at $175,000 estimated value.

Appraisal came back at $182,500.

Can I pull out from the $182,500 appraised value or do I need to stick with the $175,000 proposed value?

This is my first Cash Out Refinance, so any help would be great.

Post: Increasing rent from $1,245 to $1,445? Remove tenant or offer?

Lawrence PaulPosted
  • Rental Property Investor
  • Montgomery County
  • Posts 72
  • Votes 9

Thanks for the insight, Bill.

All great points.

Post: Increasing rent from $1,245 to $1,445? Remove tenant or offer?

Lawrence PaulPosted
  • Rental Property Investor
  • Montgomery County
  • Posts 72
  • Votes 9

Annual comes up in December and the next two are in August.

Might do that idea and offer a 3 month lease at the increased rate to the tenant in December.

Post: Increasing rent from $1,245 to $1,445? Remove tenant or offer?

Lawrence PaulPosted
  • Rental Property Investor
  • Montgomery County
  • Posts 72
  • Votes 9

Hello again, BP.

So, I have not raised my rents in roughly three years, but really feel the need to increase rental prices now after looking around.

Currently at $1,245 for a 2 bed 1.5 bath 1060 sq ft flat in a B+ to A- location.

Should I offer the increased price of $1,445 to the current tenant or remove them for minor renovations before renting back out?

Slightly nervous that they might get angry due to a $200 rent increase and potentially damage the unit.

What are your thoughts? Do I need to give them any paperwork as to why I would not be renting the unit back out (PA)?

Thanks for any and all replies!

Post: Should I Cash out Refinance!?

Lawrence PaulPosted
  • Rental Property Investor
  • Montgomery County
  • Posts 72
  • Votes 9

Thank you for the response.

I decided on going ahead and cash out refinance my primary residence and property 1.

While the cashflow will go down, I really should be playing the long game and continue to scale (like I wanted to do).

Another purchase/rent increases should/will cover the losses in cashflow, while increasing amortization's.

Really appreciate someone taking the time to reply and read, since I have no one else to talk to about these subjects.

Thanks again!

Post: Should I Cash out Refinance!?

Lawrence PaulPosted
  • Rental Property Investor
  • Montgomery County
  • Posts 72
  • Votes 9

Hello again, BP Member.

Just wanted to come and get your thoughts on three properties that I own and was thinking of doing a cash out refinance:

Two are investment properties that have had their value skyrocket and one is my primary that I will eventually move from and rent.

I am roughly $200 under current market rents on my two investment properties (Same lease for three years).

Property 1) Purchased at $110,000, owe $40,000, rough value $175,000.

Thinking of doing a cash out refinance and will still cashflow around $250-275 on the door after raising rents.

Property 2) Purchased at $120,000, owe $90,000, everything else is identical to first unit.

Primary ) Purchased at $167,500, owe $128,000, rough value $210,000.

When I move and rent the unit would cashflow around $200-250.

Should I pull cash out of all three to buy more? 

Will prices comes back down? (my area SE PA is seeing very high prices right now).

Should I just pull the $40,000 out of my primary to pay off property #1?

I honestly want to scale, but this would be a huge step for me and I am slightly nervous and do not have any mentorship.

Any help is appreciated!

Post: Can I 1031 exchange two properties for one?

Lawrence PaulPosted
  • Rental Property Investor
  • Montgomery County
  • Posts 72
  • Votes 9

Thank you guys so much, just wanted to confirm!

<3

Post: Can I 1031 exchange two properties for one?

Lawrence PaulPosted
  • Rental Property Investor
  • Montgomery County
  • Posts 72
  • Votes 9

Basic question here:

Can I 1031 two properties into one property?

Post: 4th Property - Pay off or wait 2 years?

Lawrence PaulPosted
  • Rental Property Investor
  • Montgomery County
  • Posts 72
  • Votes 9

I'll reach out to my lender and ask before looking for another one.

Good idea.