All Forum Posts by: Paris Shewey

Wow thank you Dan and Greg, that’s super helpful! We’ve been trying to figure out how to best analyze each option and return on equity and comparing to loaning the money both make a ton of sense and definitely seems like selling is best.

Our market here is a buying frenzy...there is only 2 weeks of inventory and there are so many buyers and investors here. We also have about 5 main flippers in our city who buy almost every house that goes to auction and will outbid any newbies just to keep them away. The median single family home is going for $400,000. In terms of multi family’s we are probably looking at 400-600k purchase price on the low end if we found a deal, had all cash and could move quick. We also have 3 small kids so moving and house hacking requires quite a bit of work. Also we would likely need a place to rent in the interim between selling and finding a multi unless everything lined up just right. 

Any other thoughts or suggestions given our market on how to best take the next step as investors? We’ve thought about looking in other markets where it’s less competitive. 

So thankful for your input!

Thank you Brad and Bjorn! 

Yes if we sell we would most likely house hack the multifam. We would only buy once we find one at a discount ideally following the 70% rule so that could gain substantial equity from being renovated and refinance sooner. 

I just used a calculator to find our cash flow amount. It might not be totally accurate but should be fairly close. 

Am I crazy to think it would be possible with a heloc as down payment for a hard money loan to keep our current home AND buy a duplex that we can rehab rent and then refinance all while living in our current home? Am I seeing it right that the biggest challenges will likely be finding a deal that’s within the 70% rule given the market competition and then making sure we can refinance and pay off the hard money and heloc? 

We have 3 small kids so if it’s possible to avoid house hacking and moving a ton that would be our ideal. 

Thoughts? 

Hi BP family!

My wife and I own a home in Vancouver, WA where there is huge demand for homes and low inventory and the markets really hot for selling. Most homes are going for well over asking and waving inspection.

We are feeling torn between selling our home and keeping it as a rental. If we sell it now after closing costs we should walk away with anywhere from $130,000 to 160,000 depending on sales price and closing costs. We put $60,000 down and have about $20,000 in repairs into it. We would take our money and look for a a duplex, triplex or four unit multi family we could brrrr.

If we keep the house as a rental we If we keep our house and rent it out the mortgage is $1390 and the average rent in our area for the same type of home of $1950. We would probably need to put at least $3500 into it now to redo the plumbing. We think it would cash flow $350/month.

We don't have cash and we want to keep investing so we would take out a HELOC but we would likely only qualify for 60-80k maybe 100k if we pay $700-800 for an in home appraisal and go with a higher rate around 4.5 variable to get 90% LTV.

Our goal is to have rentals and it seems unwise to walk away from a cash flowing rental but also it seems like if we can capitalize on all the equity and the market being so hot maybe we can take the money we walk away with and find more doors with higher cash flow and be able to invest at a faster rate.

Advice?

Hi BP family! 

My wife and I own a home in Vancouver, WA where there is huge demand for homes and low inventory and the markets really hot for selling. Most homes are going for well over asking and waving inspection.

We are feeling torn between selling our home and keeping it as a rental. If we sell it now after closing costs we should walk away with anywhere from $130,000 to 160,000 depending on sales price and closing costs. We put $60,000 down and have about $20,000 in repairs into it. We would take our money and look for a a duplex, triplex or four unit multi family we could brrrr.

If we keep the house as a rental we If we keep our house and rent it out the mortgage is $1390 and the average rent in our area for the same type of home of $1950. We would probably need to put at least $3500 into it now to redo the plumbing. We think it would cash flow $350/month.

We don't have cash and we want to keep investing so we would take out a HELOC but we would likely only qualify for 60-80k maybe 100k if we pay $700-800 for an in home appraisal and go with a higher rate around 4.5 variable to get 90% LTV.

Our goal is to have rentals and it seems unwise to walk away from a cash flowing rental but also it seems like if we can capitalize on all the equity and the market being so hot maybe we can take the money we walk away with and find more doors with higher cash flow and be able to invest at a faster rate.

Advice?

Hey Andrew, Did you end up finding a good CPA in the area?

Looking forward to seeing you all there tomorrow evening!

Address:

915 Broadway St. 

Ste 100

Vancouver, WA 98660

Free meet up in downtown Vancouver for the BP community of the area. Please RSVP to me. This event will be free and drinks (beer, soda, water, coffee, tea) will be provided!

To make this an impactful and effective event everyone will get 30-45 seconds (depending on attendance) to describe what they do/what they are looking for. That way we can all network more effectively. Looking forward to seeing you there!

Congrats @Aaron Phillips! Now its time to make the magic happen :). Good luck!