All Forum Posts by: Riley F.

@Account Closed 

Given the choice I would too, I guess my question is how does one pick those markets vs ones that depreciate. 

For buy and hold investors out there, how do you guys think about appreciation and how do you factor it in to your buying and selling decisions, if at all? What key factors do you use to measure the potential for appreciation and where do you find this data?

As an illustrative example, would you be willing to go down in CoC yield from 15% to 10% for the potential for appreciation, all other things being equal (I know that they never are).

I'd love to hear some more folks opinions on this one.

To piggyback on Will's idea, I think it makes sense, though it might be better converting all metrics into 1 to 10 scores using percentiles or using a +  or from -1 to 1 score being the best for a given stat, thereby making it easier to understand. To convert: 

Schools / age / economy / rent / crime

6/10; 6/10; +.2; +.2; +.15

The flip side of this is, I think that schools tend to be a very good proxy for the quality of the neighborhood overall because it takes so much of the other information into consideration at the outset. Rarely do I see 10 schools in areas that are poorly developed economically with very high crime.

I'd be interested to hear everyone else ideas on this. I think a 6/10 Great Schools rating roughly equates to a C+ property.

Good point - this was only 3 months ago. Once the properties are seasoned, is this something that you recommend doing?

Also, will they use my sales as comps? If they do, that will certainly effect the appraisals for the worse.

Thoughts?

Can you package the 2 as a single refi? Would it be a conventional or commercial loan?

Thought that was going to post as a table.

Price     $140,000

Value     $210,000

Down     $28,000

Loan      $112,000

Equity    $98,000

@ 25% LTV $157,500

Cash available @ 25% LTV $45,500

I'm not sure if this is the right forum for this, but I have 2 homes that were purchased on 20% conventional financing for $70k and appraised for $105 apiece, which gives me the below numbers:

It looks to me like I have $45,000 in equity in these 2 homes that I would like to use for upcoming purchases. My questions are 2:

1) Are the initial appraisals a good proxy for cash out refi or HELOC appraisals?

2) What is the best way to access this money, if you would recommend accessing it at all?

See you there.

Typed letter must be in there somewhere.