All Forum Posts by: Michael J. Abel

Interest rates do not directly impact single family house values, comparable sales do. As interest rates change there might be a larger or smaller buyer pool for a given property now that they could afford more/less which could indirectly impact values. But home value appreciation is speculation, while cash flow is much more predictable.

@Anthony Dadlani @Todd Settle @Reginald Truss Thanks, looking forward to speaking with you soon.

I lived in Folsom for almost 20years. Sacramento has changed quite a bit.

I would suggest first calling your current lender and asking for a cash out refinance estimate including rates/fees. They may be easiest to work with since your information is already on file. Then call up a few lenders and get some loan estimates. You can find lenders on Zillow, etc. You might also want to consider a HELOC. Then compare. This will give you the most accurate view of current loan rates/fees based on your situation. You might find that rates are not much different than what you are currently at or maybe much lower. Some may charge points and others may not. Just compare.

Why do you want to pay off the 1st loan if you can use the funds as a downpayment to buy another investment property? If rates are low enough, you can refinance your other loans and repeat.

Hi, I am evaluating an SFR BRRRR deal in Atlanta and I am looking for an individual private lender to fund the purchase.

Agree. I use rentometer and lookup by zipcode. I also take into account the number of bedrooms since the rent can differ significantly depending on the area.

I grew up in the Bay Area and have lived in California most of my life. You also need to take into account vacancy, property taxes, and insurance. Keep in mind that property management has two components- 1. Day to day property management 2. Leasing. Leasing can be up to 1 month of rent depending on the property management company and location. Make sure you are factoring in these pieces into your analysis. Also, California tends to be a tenant friendly state so i would also take this into account. Selling the property might make sense if you are able to find a better investment. Your family member could also take advantage of house hacking so you might want to consider that option as well.

@Joseph Firmin Great list! 

You can do either a cash out refinance or an equity home loan/equity line of credit. Each has their own tradeoffs so research them and compare costs to determine which one is best for you. Once you get the funds use it to make the downpayment on a new property using conventional financing. 

Congrats on getting your offer accepted. I would strongly recommend you get to an ARV that you feel confident and comfortable with as quickly as possible. In order to get all your money out ignoring closing costs, your ARV would need to be ~350k assuming a loan at 70% LTV (this is conservative, you maybe able to find 75% LTV). If you are not trying to pull all your money out, then the ARV can be lower. Double check your repair estimates by getting quotes from a couple of different contractors.

Welcome to BP! I am not sure what you mean by poor market? No or limited demand for rentals? Weak tenant base? High crime? No job growth, development, population growth? If your market is growing with good fundamentals then I would strongly suggest focusing your efforts there. It would be close enough to self manage, etc. However, if the purchase price in your market is extremely high and you can't cash flow, you may want to reconsider or find another market.