All Forum Posts by: Matt Lawrence

@John Teachout Part of why I initially wanted to sell instead of keeping as a rental was how it would improve my debt/income ratio which has hurt me as far as getting approved for my next loan. I like the idea of listing 1st with that backup plan so I appreciate the feedback.

@Bryan Blankenship Yes so much uncertainty at the moment it makes it a little more difficult to plan for a refi, seems like it would take a backseat to the PPP or EIDL which I just learned much more about on BP business podcast #50, highly recommend listening to that one.

@John Teachout That's a good idea, I might try that for 3-4 weeks & adjust from there. Am I right in assuming I would get a similar amount in hand with a refi vs selling the home? I haven't crossed that path yet but know I need to start using that option if not with this home, then a few others.

I would love some advice over this scenario which was kinda clearcut to me 2 weeks ago (to sell & reinvest $$$) but now I'm on the fence. 

Situation: I have owned my primary for 6.5 years & will be moving in the upcoming weeks to rent a house. I was planning on selling my home because I don't feel the margins fit to turn into a rental, but I am now considering this as an option after getting fixing costs from contractors & further considering refi options. 

The #s: Mortgage on the home, escrow - $800 total - ($177 of that goes toward principal if relevant)                

            Estimated rent - $1200 

            Current fixed interest rate on the 30year note - 4.625%

            Home has $12k in principal paid, with a $26k down payment + added equity totaling approx $63k before closing costs, so I assume I would pocket around $54k after selling (fsbo #s)

 A structural engineer inspected & recommended that if I want to sell the home, I should have 13 piers replaced costing $7200 but long story short I think it's more of a precaution & would not have this done if keeping as rental. No slope inside the house & have fixed the minor cracks inside. 

So my question is, could/should I keep this as a rental & use a HELOC & pull close to the same amount if I were to sell the home while saving maybe $9500 in repairs (some cosmetic fixes & upgrades best for selling not renting, possibly staging) or am I looking at this the wrong way?

I have 6 rentals in the same city that I self manage so this wouldn't add much more time on my plate after finding a tenant. I'm sure I left out some pertinent info in some regard so please let me know. 

I look forward to your insight & stay safe everybody!                                                            

Hope you get a more accurate reply than mine but getting it section 8 approved shouldn't limit your tenant acceptance & my guess is that it would only help & add more possible applicants/tenants. Never heard of "section 8 only". 

Part of it depends on the terms of your student loans; low interest rate I'd be more willing to invest. If they're closer to 8% loans I might hold off.

Fwiw, in my market it seems that the majority of potential renters prefer hardwood vs carpet. Looks better overall in my opinion but just talking cosmetically, gives a better 1st impression.

@Caleb Heimsoth yea I'm not a fan of variable rates with the likelihood of rates increasing 3-4 times this year. Thanks for the reply

Not sure why I can't edit via mobile... cont ... For arguments sake using my own money doesn't affect my personal life & would give me more positive cashflow per month to build up for the next house as opposed to paying my investor back over 60 months. Anyway I was hoping to get some opinions for my plan to buy & hold for 30+ years & wanted to consider all options. Thanks in advance.

I have 3 options to use as my down payment towards my next SFR. HELOC from my primary home, which I initially leaned towards thanks to David Van Horn's opinion, with a 5.5% variable rate & I believe paid back over 3 years. Never done this before so still learning the ins & outs. Private money which would be approx a 15k note that I would pay back @7% over 5 years making it a lower monthly payment - Use my own money. For arguments sake