All Forum Posts by: Maurice Smith

@Maurice Smith

Good for you. I remember you bought 4plex in NW Las Vegas. Long term hold. 70k in less than a year is a good amount of appreciation. The percent increase is greater than bay area, and the risk is also less due to the outlay of cash.

You should plan your vacations in Las Vegas, and visit your 4plex. Thus, all expenses can be written off on taxes.

Terry

I'm glad the thread fired up again. Let's take Terry's example from Carriage Park. Wheelright dr area. He bought for 170K 3 years ago A few 4 plexes were/are for sale. Prices were 300K to 320. They were in the 220/240K range just 2.5 years ago. So Terry made large equity in just 6 months there, and a killing over the 3 years. Great for someone who bought then. With the example I analyzed, HOA was $1450/month or $17,400 annually. Rents are in the 650/800 range so lets say $2900 or 34.5K annually. opex 16K. Mortgage 25% down would be $1,130 ish or $13560. I'm a newbie but that looks like $-1000/month cashflow so you're relying completely on appreciation to make money, and you're trying to convince tenants to pay more, over $800. If the properties crashed in value, back to 170-200, that HOA would still kill it. Am I missing something? I have found 4plex HOAs for the 600-700 range.

@David Beadles

Hindsight is 20/20. Time for a historical perspective if you had bought about 3 years ago, 4plex located at Carriage Park Villas. This is the 4plex that you mentioned in this post. I'm a good authority on this complex, off Maryland and Tropicana, as I bought in 2016.

I bought for 170k in Apr'16. Today (12/19) recent comps are 367k, 380k, and 375k. My net cashflow are about $800-900 per month. 

Summary. A great purchase. Original tenants are still there. My thought was to fix up when tenants moved out, but they never did. Rents can be increased $200-300 to match market. 

Terry

@Maurice Smith

I'm currently refinancing my single family in Eugene, OR.  It is held privately by my wife's uncle and we pay the mortgage through a trust.  Local lenders offered cash out refi to a 30 year at 4.5% with about 10k in closing costs; this is on a credit score of 688 and had to option to buy points down to 4.125%.  The uncle was actually able to make better terms, so we are going with his offer, but the mortgage company definitely had very good rates.  

I agree with others, this seems like paying a lot for not a lot.  Do you plan to own it greater than 10 year? If so, maybe worth it, but still seems a lot.  I would shop and make sure they are the best offer you can get.  If another lender can get you significantly lower closing costs, I might go there. 

Even under the old loan your payment should be under $1700/mo plus taxes/insurance so don’t know why you say 2 months payments is about $6000?

Don’t forget, by now you’ve also paid off about $3,000 on your original loan, so this is costing you $16,000. 

Something’s fishy somewhere with this math. 

If you hold for 30 years, don’t die and don’t sell, you will save some money, maybe $20-$30k over 30 years. 

but all the savings are at the end...

in 5 years your current balance vs refinanced balances will be $245.6 vs $264.2.

In 10 years your current balance vs refinanced balance $ $229.2 Vs $231.4

so 10 years from now you’re still worse off with the refi. 

Sorry for OT but what lender are you using in Las Vegas?