All Forum Posts by: Matt Wells

Just had a thought. What if I am maxed out on my 10 conventional loans for rental properties and I inherit 10 rental properties with conventional loans? Is this an exception to the 10 loan max? In this case, would I be allowed to have 20 properties on conventional loans?

I learned this today and just double checking on biggerpockets to make sure it is true."Indiana uses the 1-2-3 Tax Cap rule. In a nutshell, Owner Occupied properties owe 1%, Non-Owner Occupied properties owe 2%, and Commercial properties owe 3% of the assessed property value each year."

I was entertaining the idea of investing in Indiana as an out of state investor, but this may deter me some.

I would like some opinions from experienced investors. I am ready to buy my 3rd rental property and curious about what you would do. I can't decide if I want to purchase a property in full with cash from savings or if I should sell my stocks to purchase a property in full. I have made a profit from the stocks I would sell. I am asking what the best move is considering the hectic economic times and the unpredictability of the current housing market. I will be purchasing the property in December 2020. Whatever route I go I will eventually be using the leftover money for more rental properties. Some thoughts:

1. Sell stocks while they are up and purchase property in full. Use cash in savings for a future 4th property paid in full.

2. Use cash in savings to purchase property in full. Keep stocks for a chance of more returns and to purchase the 4th property in full.

Thank you in advance for your thoughts and suggestions.

If I purchase a rental with a commercial loan from a bank in an LLC, will that loan affect my debt/income ratio and my ability to get a Fannie Mae personal loan in my own name? I'm trying to maximize my borrowing ability. Right now, I have two SFR rentals in Fannie Mae loans and my debt/income ratio will allow me one more Fannie Mae loan this year. Will a commercial loan from a bank screw up my debt/income ratio for a personal Fannie Mae loan? Does anyone have any strategies and advice?

@Mark H. Porter How long would it be before I would be able to move into the new 1031 exchanged rental property and use it as my primary residence? 6 months or a year?

Can I 1031 Exchange an SFR rental property for an SFR primary residence? If not, are there any strategies to get around it?

Is there a difference in closing costs between traditional and commercial loans? Is one usually less expensive than the other or does it mostly depend on the lender?

@Steve Vaughan Two SFRs, one at 4.5% and one at 4% for 30 years fixed. 

@Nicholas L. I just calculated PITI. I left out the Capex. The reason why paying down my principal seems appealing is that once it's paid off I'll be getting so much more cash flow. Saving cash flow to buy more real estate seems like a great idea too. It seems like if I paid one house off and then put the entire rent toward principal into another house's principle I'd be paying my rentals off quickly.

@Adam Bileckyj I was thinking I may put the cash flow in an S&P 500 fund and then use it to pay off the principal in a few years. I am open to any option suggested.