All Forum Posts by: Patrick Gault

Hi there.  I have owned two triplexes in town for the past five years and have done most of the work myself.  I have been thinking about trying flipping, as I have a decent eye at this point so I'd like to see if there is anybody out there flipping in ANC currently and what that market looks like right now.  I have a friend who is a retired contractor and interested in doing the labor but I'm curious if investors tend to want to see a currently licensed contractor do the work.  Also, any guidance on how to find an investor would be much appreciated.  Thanks!

I currently own two triplexes. The first I bought with a VA loan and no money down. The second I bought with an FHA loan and very little down. If I had put 20% down, both properties would cash flow beautifully. But with 30 year notes and one property at 3.25% and the other at 3.87%, it’ll be a while before I reach a point with my equity where a refi will bring my P&I to below where it is now with those super low rates. Unfortunately you can’t recast VA or FHA loans. So my options to lower my monthly payments are limited at best. There’s always the waiting game which is certainly an option. But I wanted to ask all of you what your inventive ideas are in times with increasing rates. Thanks!

Originally posted by @Chris S.:

USAA is good for cars up here, but not houses

 Chris, I'm curious about USAA.  Are they not good up here due to cost or because of what they don't cover?  Just curious.

Thanks everybody for the beta.  I'll start shopping around.

Hey everyone, I'm considering using an insurance broker to shop for better insurance options.  I'm currently using USAA.  I'm wondering what folks' opinions are as to whether a broker is worth it and if so, if anyone knows of any good ones in Anchorage.  Thanks!

While I've gained some decent experience in the past five years buying and holding onto two triplexes, refinancing is still a mystery to me.  I've read up on it and understand the basics but I wanted to run my situation by the forum and see if I could glean some wisdom as to whether I'm ready to head down the refi path with one of those triplexes.  

On paper, I'm still about 20K from having 25% equity on the property.  However, I've put about 40K into the building in the past five years and the result is a nice, updated, prior duplex turned triplex.  So my first question is, should I have the building re-appraised?  20K is not that far off but....I am also trying to rebuild my reserve fund after my last remodel so it is just that much further off.  I've never had either of my buildings reappraised and I am curious what the down sides of that might be.  Higher taxes?  High out of pocket cost?  Should I leave a certain door open during the appraisal so that the building is still technically a duplex?  

Secondly, what are some other metrics I should be considering but probably am not while looking to refi?  Would it be better to wait until I hit the 25% mark rather than leverage the equity I've put into it?  How should I be positioning myself financially before I start inquiring about the refi?  Is it better to go through the bank that is holding my mortgage or through my trusted broker that found me the lender?  

Too many questions to post here so fire away.  Thanks!

Thanks everybody for the great info.  

Currently, I'm depositing my reserve funds into a generic savings account.  But I'm wondering if there is a better low-risk option for that money, which is just sitting there for a rainy day, that would help it grow on its own over time and allow me to withdraw funds as needed.  

Thanks for any and all advice!

Originally posted by @Connor Dunham:

Hi Patrick,

I bought my first duplex in 2014 with 10% down. I refi'd before moving out and PMI dropped off within a couple months after paying for a broker price opinion. Much of this was made possible by an upward trending market and buying right. Currently, I'm in my third owner-occupied property and am looking to refi next year or will be requesting PMI be taken off at the two-year mark since the loan was sold to Freddie Mac: https://new-content.mortgageinsurance.genworth.com...

I've done some analysis and depending on the type of loan, PMI can be treated like additional interest to determine if you should seek alternative financing. Most recently, I was getting 9% apr on the PMI related portion of the down payment (anything above 80% LTV). So, it can really be a killer if kept on for the long term.

Connor, thanks for this bit of info. I'm a bit slow so I was wondering if you might be able to expand on the PMI being treated like additional interest idea. Maybe I'm not understanding PMI as well as I thought I did. I pay PMI for the property that I've financed with FHA. It is a monthly addition to the mortgage. But you're saying that this comparison only works in relation to the down payment portion of PMI? Or can I apply the same principle to the ongoing PMI that I pay each month to determine if refinancing under a higher interest rate would still be more lucrative than my current mortgage with PMI attached?

And thanks to everyone else that has responded as well.  This is good stuff.

I'm in need of some guidance for taking my investments to the next phase/level. I bought my first duplex five years ago in Anchorage, Alaska and then bought a triplex down the road two years later. Three years ago, I transitioned the duplex into a triplex. So I'm sitting on two triplexes, the first bought wit my VA loan, the second bought through FHA. They are both doing well. But I made some rocky decisions along the way that were great learning points and that did not sink the ship. Mostly, I went too fast and spent more than I could handle on remodels and I am crawling out of that debt right now. Luckily, I net above the mortgages (~$1450 for the first property $1025 on the second). So the debt is being whittled away at a steady pace. My goal is to continue acquiring properties and eventually pay one off by shoveling a portion of the net from all the properties into one of the mortgages.

My question is more of an opening up to ideas.  Where would you go from here?  I'm feeling a bit stagnant.  The past five years and the associated learning curve has left me with little expendable cash so I need to play the waiting game for a bit and build some capitol.  But as I do that, I'd like to start turning the gears in a good direction and one that will help me build on the foundation I have so far.  

So, I appreciate any advice that anyone is willing to offer.