All Forum Posts by: Pieter T Van Zyl

@Bradley Perry I think you are on the right track but may be a little ahead of the game for the refinance, as others have already said the fees for the refinance and the 75% LTV are the big things to consider as it seems you would potentially only get part of that 35k back which means you would likely look to refinance in the future again to get the rest. If your finances are such that you can wait a year and watch comps in the area you may see that you could get all of your money out soon.

@Erik Walker

@Matthew Keller

Following as I am interested in doing the same thing! I believe your best bet is an LLC as you can create an operating agreement that specifically calls out dozens of potential scenarios, cash flow, refi, sales, death, etc which an attorney can help work through easily.

@Chris Sanchez

Hey Chris, there are two that I know of and regularly attend. @Patrick Menefee Montford meet up and Five Pillars meet up

@Adam Venditti

Adam this is a great problem to have! I actually found myself in the same scenario you are in about a year ago. Had my primary residence with roommates, planned to move out and rent, but with the market so hot I ended up selling it and making around 75k before taxes.

I think this decision really has to come down to the numbers, what would your rent-expenses be in this house if you rented it to a family long term? What would your rent be if you did something more medium term like furnished rental for traveling nurses/corporate leases? How confident are you in the returns of the house you are looking into? And as the other post mentioned have you considered 1031 exchange?

Ultimately I sold my primary as my rental income would only be about 100$-150$/month and I wanted higher returns. I turned the 75k before taxes into 3 doors making around 1000$/mo in pure cash flow.

@Ankit Desai

Ankit, townhomes are highly desirable rentals! The issue with them is they typically have HOA fees that can kill the investment. If you can find a townhome that will cash flow and doesn't have HOAs you could do really well!

HOAs typically do not like renters and may even have a clause preventing the home from being rented out. HOAs can also increase fees typically, so a home that would have been a great investment may turn bad without you doing anything wrong.

@Jorge Rosales

I agree with Luke, negative cash flow is a no go for me. Unfortunately in our area the MF homes are very hard to come by. Is there any value add so you could refinance out of some of it? Or increase rents? Happy to discuss on the phone if needed.

@Jessie Sykes

I really like turbo tenant as it is easy to use on both sides and allows tenant screening. As most have mentioned most banks can help you out, I specifically went with Chase Banking from then reviews and ability to connect with turbo tenant.

I know of someone who just kept the utilities in their name and then split the cost the following month between each tenant. Personally this sounds insane, I would probably have done what the old owner did and just charge both a flat rate.

Same here RJ!

I second what Nicholas Said! The Gastonia Market is growing quickly and surrounding areas line Kings Mountain and Shelby are next. The other area I like a lot is Concord, NC and Mebane, NC.