All Forum Posts by: Nathan Barilka

 Hi @Kerry Baird, yes the duplex is still my primary residence, however the refinancing has me hesitant only because of my low APR which I don't think we'll see again any time soon. I've also considered getting a construction loan but in truth haven't looked into it yet.

Thanks @Jaime Reyes, appreciate the response. I'm not familiar with the HELOAN so I'll look into it. I don't necessarily need the flexibility of the HELOC as I'm only intending to lean into it once for the rehab. Thanks again!

Hi all, I'm in need of some advice, here's my situation as precise as I can make it:

I purchased 2 duplexes and am close to finishing renovations on the first one. We've done some pretty extensive work: full interior remodel including kitchen, bathroom, floors, doors, appliances and furnace for one unit. Exterior work includes windows, siding, A/C condensers. Pretty all inclusive. I was house hacking this renovation so I was able to put down 5% at 2.75% on the duplex I'm living in, then 30% at 3.5% on the duplex that had 2 tenants. After paint goes on this week and finishing touches go in, I'm ready to cash out... which is where I'm stuck.

I purchased the property for $170K, I expect it to appraise between $230-250K based on comps in the area. I calculate I should be able to pull $34-50K at 80% LTV (depending on ARV). Since I have a 2.75% interest rate a cash out refinance doesn't seem to make sense. The only other option I can think of wold be taking a HELOC out to fund the rehab on the second duplex. I know HELOC rates are in the 7% range right now, but with as much equity that I have in the second duplex, when I finish those rehabs I should be able to pull out upwards of $90K (also, depending on ARV) to pay that HELOC off.

I know there are some smart individuals on this forum so I want to throw it out there to see if there's another approach I might be missing, or an angle I haven't seen yet?

Thanks in advance for all your help!

Thank you all for the warm welcome!

@David Tsang I'm in San Mateo, live and work here. I've seen other members talk about a meet up too, I'd also be interested in meeting up with others in the area. 

@Eduardo Bernal I haven't looked much at the East Bay, but I have heard the property values are on the up. I understand the desire to be close to an investment, especially if you're able to do some of the work yourself. 

Thanks for the links, @Brandon L., I'll be sure to check them out. I'm still learning my way around the BP forums, I'm sure those will help. I'll be sure to fire any questions I have your way! 

@Michael Strachan I'm almost done with Long Distance Real Estate Investing, and have also read the new book How to Invest in Real Estate, by Joshua Dorkin and Brandon Turner. I'm finding the long distance book very interesting, and raises a good number of points to consider. I just moved up from Los Gatos, I enjoyed my short stay there quite a bit. I applied for a conventional loan last year and was pre-approved, however the house hunt fell stale after my offer fell through last minute. In hindsight, I think it was for the best. I'm still exploring private money or hard money lenders, I have yet to decide where I will land as of now. 

Thanks for the replies!

I think you have a point about being safe  @Edward Liu, and I think that's what it's boiling down to. It happens to coincide with how she's feeling too. The risk is not ideal for her, and to be honest I understand. I don't know if she can purchase a house outright in the Midwest without selling the CT house, but then again I haven't asked. 

@Andrew Briggs my mom lives in Stamford. As you mentioned, the cost of living is pretty high in Stamford as is. Your point of being close to NYC is one of my major arguments as to why she should keep the house. I too believe that houses will retain value in large part because of the commuters to and from the city. I'm not familiar with tenant-landlord laws, but I've also never had a need to look in to them. In terms of rent, comparable houses (3 bed 2 1/2 bath) in the area are renting in a wide range, anywhere from $2,500 - $4,200 (last I checked). Regardless, the general consensus is the house might be better off sold. Ultimately it's her decision. I was looking for insight in either direction, so I very much appreciate both of your posts.

Nate

Hi everyone, my name is Nate.

I'm a first time (well, second time) poster here on the Bigger Pockets forum and just wanted to say hi. Over the past couple months I have been soaking up as much info as I can through the BP podcasts, forums and various real estate books that have come recommended here. I live in the San Francisco Bay Area, I've been here for going on 5 years. I'm interested in investing locally, however I'm currently interested in out of state investing, mainly due to the inflated local market here. I'd like to start with house flips to build capital then eventually move in to single and multi family rental properties. I'm taking it slow, learning as much as I can, and I'm looking forward to meeting people here on the forums!

Hope to talk to you soon,

Nate

Hi all,

My name is Nate, I'm a first time poster here on the Bigger Pockets forums. I have a question in regards to my mothers house in CT, and how she could potentially turn the property into something that could work for her in retirement. Her plan was to sell the house, take the money and buy another property outright somewhere in the Midwest (closer to family), and have the remaining funds to do with as she pleases after she retires. It sounds great, however after hearing story after story on the BP podcasts and reading on this forum of how properties can work for you, I think there's probably a better route to take. The house is worth roughly $650K, of which she holds about $150K mortgage. I discussed with her taking the equity in her current house to purchase a new one, then have tenants move in pay the mortgage on the CT house. For her, the idea of being "free and clear" of any debts or mortgage payments in retirement is an attractive one to her.

There are creative individuals on this forum, so I thought I'd throw this out there and see if anyone might have another idea how this house could work for her, while still giving her financial freedom in retirement. 

Thanks in advance, looking forward to meeting people here on the forums!

Nate