All Forum Posts by: Mike S.

Thank you to everyone so far that has posted. This is in incredible community and one that I don't tap too frequently. My expertise lies in the field of college rentals - have posed low risk and great returns. As much as I am excited to get into STR, I have yet to go down that path - would love to learn more about them. Not sure what resources are available besides just simply taking action. Once you're in it, you're in it - it forces that learning curve!!!

Syndications seem interesting as well. Again not my forte.  

Long term rental is more than likely the route I take initially with management - as we have a growing family.  

Recently, looked into Pittsburgh due to proximity and the college scene with CM & UPitt (+ others) all in the vicinity is highly interesting - does anyone have anything solid? @Stephanie P.

What a great thread and really appreciate everyone's input. 

Cheers,

-Mike
 

Hello BiggerPocket Community,

Long story short on the clock with a low 7 figures in a 1031 - what would you do?  

Currently have small portfolio of rentals that cash flow.  Current market is very low inventory if nothing at this price point for multi families.. 

What should my goal be? how high should the bar be and what kind of measurable(s) should I not lose focus of. 

Bottom line developer came in and paid the premium. 

Thanks for your help BP Community! 

-Mike

@Chris Teti thanks Chris. I do get that from time to time hah. Nonetheless, what were you thinking? 

@Chris Teti - Yes, + the income from the two rentals - before taxes around ~14k+

Hi All,

My family has come across a dream property. It has been on the market for over 2+ years now. Property was originally listed at $1.5 mil, now down to $1.12. We are eagerly looking and searching all possibilities to obtain the property. Bank financing, land contract any other methods to think about? Here is our (limited) financial situation - any and all suggestions are greatly appreciated.

Primary Residence -Great Market; Appraised value $425k; could sell between $400 - $450k; mortgage $260k

Rental 1 - Appraised in March 2020 - 600k; mortgage 290k;

Rental 2 - Appraisal unknown between $700-750k; mortgage $200k; LOC - 100k on this property - non outstanding.

On-hand $ ~70k

Im sharing the rental portfolio because I do believe this would be a driver with this deal, however, maybe it wouldn't be and just not problem solving correctly??

What are the paths to get us to the 1mil property without selling our rentals?

Any mortgage lenders out there willing to assist or help guide.

Also happy to share any other info, if needed to problem solve.

Thank you in advance.

M

Hi All,

My family has come across a dream property.  It has been on the market for over 2+ years now.  Property was originally listed at $1.5 mil, now down to $1.12.  We are eagerly looking and searching all possibilities to obtain the property.  Bank financing, land contract any other methods to think about? Here is our (limited) financial situation - any and all suggestions are greatly appreciated. 

Primary Residence -Great Market; Appraised value $425k; could sell between $400 - $450k; mortgage - $260k

Rental 1 - Appraised in March 2020 - 600k; mortgage 290k;  

Rental 2 - Appraisal unknown between $700-750k; mortgage $200k; LOC - 100k on this property - non outstanding.

On-hand $ ~70k

Im sharing the rental portfolio because I do believe this would be a driver with this deal, however, maybe it wouldn't be and just not problem solving correctly??  

What are the paths to get us to the 1mil property without selling our rentals? 

Any mortgage lenders out there willing to assist or help guide. 

Also happy to share any other info, if needed to problem solve.

Thank you in advance. 

M

@Amir K. I will speak from experience. I currently have a LOC or HELOC on one of my investment properties. @John Warren speaks on the equity in your properties.  This is the key.  I was very luck to buy during the downturn, reno rent and retain.  Bought property A at 305k, 70-80k down and now is worth 700k on the conservative side.  Went to a few banks and researched on BP community what banks would take a HELOC on this property.  Was able to work with Huntington Bank - they have a limit of only 150k from my understanding.  Wanted to increase it to 200-300 because of all the equity in the home.  But unable due to their own risks. So still very happy to achieve this LOC on the investment of 150k.  IF you are married, they said your significant other may be able to pull another 150k out of it, as well. So just depends on your situation.  

I have posted a situation on here..haha.. no one has responded.. but currently looking at property C and using the LOC (from property A investment) to use as a down payment. listed at 650 would offer 600, good rental rates, ideal location. bank has approved me for mortgage AND ok with me using LOC as down payment. House needs some reno/updates inside which i like to increase property value... appreciation is dynamite as you can tell from my property A. Those properties are now all paid for cash in my location.

Summary... all depends on how the bank sees your story. What kind of equity do you have? what kind of credit do you have? what is your Debt to income ratios? Go out and talk with your banks. They need customers as much as you need investments. And typically every bank has different "loans or products" they are trying to fill per quarter.  You may not fit in well with one bank vs another.  

150k Line of Credit from built equity on investment property (thoughts for this is emergency needs - however had it for 2-3 years now and never had to use it and looking to use it for down payment for another property)

75k over 3 credit cards - all pay in full when balance is due (use them from everyday expenses)

It has taken some time, but always asking for limit increases on CC and being mindful and discipline about your daily living expenses. 

Ive read that 25k in cash per investment for emergency "storage" is ideal.  I did that by saving 1k a month for 2 years and it built up fast. And then used it to buy another property haha... 

You never know what sort of problems are going to arise. I've built my emergency funds in a few different ways - cash on hand, LOC from investment property, and built my credit so if I can't access my cash, I have the ability to use my credit. I also do my own property management, which may or may not be the best solution these days... but it allows me to sleep at night or not haha..

Write a list of what could happen and what some of the costs that could be and know what you are and aren't comfortable with.  Everyone has different risk factors.

Tree goes through roof, flood in basement, pipe burst on second floor, window breaks in dead of winter, furnace stops working, washer dies (had it happen to me second week new tenants moved in)

It sounds to me from your last post you have made your decision.  You know your location the best and irregardless of the numbers... you are collecting cash monthly and have the potential to make some large gains in 5 years - thats if the market stays in a decent place.  Best of luck with what you decide.