All Forum Posts by: Mike Sangapore

Thank you Josh! I appreciate the feedback. Definitely going to shop around for good HELOC options - any recommendations would be much appreciated!

Well properties in my area seem to be dropping quite a bit compared to 6 months ago - I'm not convinced that it will *really* take a downturn, I just want to be prepared in case it does. And thank you for the HELOC suggestion - I think that might be a good plan as well. I suppose I didn't care so much about having to start paying off immediately because I wouldn't have to dig into my pockets and still cash flow nicely.

 I don’t, I will likely be around 5%.

Hey Guys,

I have a duplex with 100% equity that's probably worth around $325k and is rented for a gross total of $2,450/mo. I'm looking to buy a rental to rent as an Airbnb. I'm wondering if it would be a good idea to take advantage of this market (before it really takes a downturn) and cash-out-refinance and sit on the cash until I can find the next good deal. If it's worth $325k, which is conservative, I'd likely be able to walk away with somewhere around $225k which would decrease my cashflow from about $1,850 to about $700/month. The Airbnb range I was looking to be in would be around $300-400k so I would be taking out another mortgage but of course making sure the numbers would make sense and would generate more than the original net $1,850/mo that I'm sitting on now. Let me know your thoughts - this would only be my second rental so I'm very new and trying to make sure I cover all my bases. 

Thanks!

Mike

It looks like this will be the best route for this property.. I don't know if there are any better options other than a HELOC or waiting it out.. thanks for sharing @Brent Kane! I appreciate it!

Nice! I just moved here back in April, I like it so far.

I haven't really considered a HELOC for this property but am digging into it more. That said, yes, any recommendations would be very much appreciated! Thank you!

@David M.
That's kind of what I was thinking as well - it would help for another deal, but wouldn't make a world of difference.  I suppose if there are low cost updates I can do that will create better returns I can fish those out, otherwise, I will let it sit and potentially refinance in the future if things makes sense. Thank you for input again. 

Hi @David M. I appreciate your response - sorry about the confusion. By 60%, I mean I would be recouping about 60% of my down payment after refinancing. My thoughts being: 210k* 75% = 157,500. 157,500 - 135,000 (now really about 133,500 after paydown) = 24,000. 24,000/40,000 (40,000 being my down payment) = 60%.  Thank you again for your help!

Hey Everyone,

I'm thinking about refinancing and I wanted to hear your opinions.. I bought a single-family house in Middletown, CT in April for $172,500 and took out a loan for about $135,000. It's a relatively decent deal and I am currently house hacking. It was in good shape so not the best deal for a BRRRR but the plan is to rent it out once I move out. Now things have changed and I will likely be living here for another 1-2 years but want to pursue another deal without dipping too deep in my pocket. I estimate that the property is now worth somewhere in the neighborhood of $210,000. Assuming 75% of LTV, would it be worth refinancing and only taking out about 60% of my equity? There doesn't seem to be much else I can do to enhance the value of the property to receive justified returns. This will also (likely) be a long term hold and I estimate that vacancies won't be much of an issue as it is a high rental area.

I'd like to note that this is also my first of (hopefully) many deals to come. This particular purchase happened to be for an investment but also a place for me to live so I didn't have the time to wait for the "perfect" deal that would be a good BRRRR property.

Thanks guys and gals for your help!