All Forum Posts by: Mark Aqua

@Matt Devincenzo This was exactly what I needed thank you!! I was running the numbers but was missing this key point which helps make the comparison so thanks again. 

Yes the actual fees were 4k and 3k in escrow funding. I'll look into my other options and see how they compare. I'm leaning to a home equity loan depending on the terms.

@Dave Skow I was planning to finance 277k and out of that getting 45k cash. I was steered away from a HELOC due to adjustable rates but will look into a home equity loan after this discussion.

Thanks for the feedback everyone! I’m very new at this so if you don’t mind I’ll share some specifics. 

Two years ago I was looking for a single family and came across a duplex. Seemed like a good idea so I bought it. Currently living on one side and renting the other. Doing research to figure out landlording I found bigger pockets. Great info and made me want to invest more. 

Purchased for 270k and got a loan for 235k @ 3.25% interest rate. The rental right now covers the entire mortgage. Between market increases and work I’ve done the property should appraise for 370k+. The principal is at 225k so my plan is to cash out refi pulling 45k out and refinance 277k at 4.375%. It will result in a 350 dollar increase to the mortgage. 

End game is to purchase a beat up single family to live in and rent out the side I’m currently living in. Fix up the single family and cash out and repeat down the road. If both side were rented at current mortgage I would cash flow $950 a month including all expenses, capex, and maintenance. After the refi it would cash flow at $600. 

Seems like a good investment to me. Am I on the right track? Thanks for the advice!

Plan B is saving up from my W-2 and the current cash flow... but that would take 2 years or so to make it happen. I was getting caught up on the overall cost of pulling the money out over 30 years. 

But all good points about borrowing below inflation rates, rents should only go up over time, and most importantly the expense will allow me to grow. 

Thanks for your insights Andrew I appreciate it!

-Mark

Hi everyone
I’m looking to do a cash out refi on my rental property so I can purchase another property. 
I am able to pull 45k out of the property but my interest rate is going to jump 1%. I’ll be losing $350 in cash flow due to the increased mortgage payments. 
Do you think this is too steep a price or worth it to keep momentum going?

Thanks for any thoughts you have!

I've done lots of searching and couldn't find an answer... any help would be appreciated!

I have a lease ending in February that will switch to month to month March 1st. The lease requires 60 day notice to terminate the lease and 30 days notice when it is month to month. 

Can I give 30 days notice to terminate during the month of February for a vacate date the end of March? Or does the month to month lease have to start March 1st then I give them 30 days notice and they stay to the end of April? 

I would give 60 day notice today but I've been waiting on notification from Hud on approving a rent increase or not. I'm assuming it will not be approved.

Thanks in advance for any help you can offer!