All Forum Posts by: Michael Barido

@Chris Seveney

Thanks Chris, that certainly makes sense.

@Michael Barido

Closing costs are $8,600 - investor's "special". Not great rates or costs but gets me in eith decent cash flow and ROI.

I have a deal I'd like for advice on. Buying a condo and have several options. Table format is the following - down payment % - cash flow - ROI - Down payment amount - Rate:

20% - $281.18 - 12.55% - $18k - 10%

25% - $336.85 - 11.18% - $22.5k - 9.875%

30% - $411.63. - 12.48% - $27k. - 8.875%

The closing costs are not included in the DP values but is included in the ROI above. I'm an accidental landlord and this is my first real investment (other rental I lived in and were VA loans). I'm thinking the best strategy is the 20% DP and higher IR but would like verification and thoughts on the closing costs. Thanks

@Steven D Martin I just did this very thing in March. It was a credit union and they never asked. Did a heloc on an investment property twp weeks ago as well. Credit Union again but suffering one.

@Brandon Hall I've been told a land trust will solve this issue. Might be a little more to it but the due on sale can be avoided this way.

@Scott Trench this is really what I was thinking. I don't like debt hanging over my head and would feel more comfortable debt free. But I also have this desire to move forward on the journey

@Theresa Harris the $80k is basically a one off - home improvement.

Thanks to all who replied.

I know this is personal for everyone but I'd like to share where I am. My wife and I have good jobs and we do have $80k in debt (not good debt but bad debt). We have leftover around $3,200/ month and we currently have 2 rentals not counting our house havk basement apartment (yes the cash flow is part of the $3,200/month leftover). These rentals were houses we lived in prior to them being rental. I have HELOCS with my residence and one if the rentals totalling $150k. I was thinking of using the HELOCS to get rid of the $80k which is a higher interest and then knocking thise balances out. My question is would you continue to knock out the $80k debt with the $3,200/month and use the HELOC to invest in real estate or would you knock $80k with the $3,200/month and then use the HELOC to invest?

@Gildas Dossa I think it would be good to know if you are a civilian with a high W2 or military with access to VA. I am a veteran but currently have a high W2 with the federal government. I have a couple properties now and I'm currently thinking about tapping my tsp. If you are military you can do up to a 4 unit and house hack. Others here have great advice and it will mitigate some of the risk.

I found an 8-unit MF for sale for $525k. I'd like to offer no more than $475k (based on difficulty the seller has had in selling (> 6 months) and communication with them they indicated that it was a fair distance for them to maintain and that's why they want to sell) and utilize owner financing. Currently owner is using a REA but it's been listed for 6 months (come Feb. 28) and I'm hoping it was a 6 month contract. I'd put down $50k and pay them $1240/month (interest only $425k @ 3.5%) and then refinance prior to or at 5 years. At 50% expenses, $1240 payment, and 7% vacancy the property cash flows at $1640/month. I'd like to offer this lower since the owner says it's difficult to maintain - I read that in a couple different ways but the point is that there is difficulty there and I don't want to pay full price ($525k / 1.06 = $495k => so ask $20k less). Obviously I would have to look at rent rolls to see if they have issues with vacancies. I'd also look at maintenance receipts and have it inspected. This is in my home town but I'm not opposed to walking away if they were to ask for the world.

Is this a good deal for the owner and/or myself? If not, what could be done to sweeten the deal for either party where we both are happy? Not the great economy in WV but most are hard working. The property probably won't appreciate very much at all.

here one place you go to see population forecasts, housing appreciate forecast, economic, etc.