All Forum Posts by: Ricardo T.

I am considering selling some or one of my multifamily properties to scale up my portfolio in terms of both doors and value. I currently own several properties with approximately $200k in equity. For example, I owe $340k on one property, and it's worth roughly $550k or more. My goal is to expand my portfolio size before starting a family and needing to take on less risk. I would like to sell these properties to acquire a larger building, perhaps a 4-unit or larger (maybe commercial), priced around $1M to $1.2M. The downside is that I currently have low 3% interest rates and the properties are generating good cash flow.

Any advice?

You speak of less risk because you’ll be starting a family, so I assume you’re fairly young. I think the better question would be how much management capacity you’ll have once you start a family—as in how much time you’ll have to devote to your properties.

If you will only have time for one property consider a really good management company for your current properties (assuming they’re in one area) so you can concentrate on your family one one new place just to keep your hand in.

Pay for the new property by offering second place interests in your current properties in addition to a first on your new property. That way you can tap your equity without losing your current mortgage rates. Coordinate with all your lenders.

Thank you for the feedback! Are you saying take another mortgage on the home? I have not been able to find a lender who does Helocs on multi families.

Not a heloc, which is a stand alone instrument. You can offer more than one property as security for a mortgage, with the current properties taking on second mortgages. Think of it as a portfolio mortgage and a first mortgage combined in one step to give enough security to have a low/no down payment for the new property.

Any recommendation on places that do that?

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Quote from @Jay Thomas:

Selling can unlock equity for a larger building, offering diversification and potential higher returns, especially in the current strong market. However, you may lose favorable financing terms, established cash flow, and incur transaction costs. Alternatively, you could explore options like cash-out refinancing to access equity while keeping low interest rates and established cash flow, or a 1031 exchange to defer capital gains taxes and reinvest proceeds into a similar property. To make the best choice, carefully calculate the financial implications, align with your long-term goals, research the market for larger buildings, and seek advice from a tax professional to navigate potential tax impacts.

Thank you! I have definitely thought about a 1031 exchange and need to sync up with my tax guy!

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Quote from @John Clark:

Quote from @Ricardo T.:

Hi all,

Any advice?

Thank you for the feedback! Are you saying take another mortgage on the home? I have not been able to find a lender who does Helocs on multi families.

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Hi all,

Any advice?

2 Votes

I have a multifamily I utilized my VA loan on which I refinanced at a 2.25% during Covid. I am looking at freeing up my VA entailment and refinancing into a 7/1 ARM at 5.0% . I would like to use my VA loan to purchase a Condo with no money down. Would you keep the Va loan on the investment property and use a conventional loan on the condo. Or would you refinance the VA loan, flip to the ARM and use the VA on the condo. The property is cash flowing around $1250 give or take after all expenses.

Current Mortgage Payment (Including taxes insurance): $2,200

New Mortgage Payment: $2,800

Difference in monthly payment: $600

New Cashflow if refinanced - $650

Cash needed if I had to use conventional on new Condo: 30-45k (5%down in the greater Boston Area)

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Boston, Massachusetts

@Ryan Weiss awesome!

1 Vote

@Elise Marquette thank you so much for the info! I called the va and I have 320k left in entitlement. Do you happen to know for example if I want to buy a home for 400k would I have to put 20% of the of the 80k since I do not have enough entitlement to cover the total amount?

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Hi everyone!

I have a question regarding the va loan entitlement. I recently used my va loan to purchase my first duplex 4 months ago. I live in one unit and rent out the other unit.

I am considering taking a promotion for work about 40 miles away which wouldn’t take place until February 2021. Could I use my remaining entitlement to buy another multi family to move closer to work, while keeping my current house and coverting it into a rental property?

Thank you!

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Hi everyone!

I recently bought a two family and plan on acquiring another property (3-4 unit) no later than February 2021.

My question to everyone is, how did you build your portfolio? How big is it? How many did you acquire a year? How did you obtain the capital to keep buying properties?

I listen to a lot of podcast and do a lot of reading, but all I read/listen to is people who went from 1 to 100 units in 2 years or stories about how someone randomly met a mentor who gave them/ loaned them money. To me that is not realistic to the average person.

Thank you!

1 Vote

@Kris L. Thank you kris!

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All Forum Posts by: Ricardo T.

Ricardo T. has started 6 posts and replied 20 times.

Post: Should I sell to scale the value of portfolio

Post: Should I sell to scale the value of portfolio

Post: Should I sell to scale the value of portfolio

Post: Should I sell to scale the value of portfolio

Post: Any Advice on the following - VA vs Conventional?

Post: 21 Year Old House Hacking a Triplex in Manchester, NH

Post: VA Loan and Second Tier Entitlement

Post: VA Loan and Second Tier Entitlement

Post: How did you build your portfolio?

Post: Owner occupy Conventional loan, while having a VA loan