All Forum Posts by: Rob Bianco

I’m debating how much equity I should hang onto when refinancing a property where I own in cash.

A buddy told me maintaining 40% was a good conservative number but it sounds like a lot? I don’t want to hamstring my ability to grow my rental business.

How much equity do you think would be a good approach to hold onto? I was thinking 30%

Sorry for the confusion, but I don't own real estate in NY. I've been investing in the Midwest, which cash-flows well, but the appreciation is not that of NYC

Well I was going to invest the equity in other other rentals to scale my business. I don't have a new property to invest in yet, but having the money means I'd be able to look for one. 

How much less % wise would I stand to lose by refinancing now vs later ? If I refinance now we're talking about an ordinary-looking unit making $950/month vs a brand-new looking unit making $1250/month 

Just something I never really understood is why people are compelled to buy apartment complex's? I've never really found a complex where the cap rate was over 6% and that seems really low even if you invest in rehabbing the units. Does anyone own a complex that has made a really good ROI ?

A realtor offered me a 5% cap rate complex that was in a great area and needed no rehab and she praised it as a "great opportunity" but 5% seems like I'd be better off putting my money in a Mutual Fund because I can't make those numbers work. 

I've had much more success getting 10%, 12%, 15% on single family homes and 1-4 unit multifamily.

So I have a duplex property where I have 100% equity and I'd like to cash-out refinance but I was hoping to rehab the units first before approaching a lender. The units aren't in bad shape at all (they look very ordinary), but as tenants move out, I've been ripping out the carpet, putting in some modest upgrades, and making them nicer and raising rents.

However, I inherited these tenants on the property who have no desire to leave even with rent increases. I also have no desire to kick them out, but in this instance would it be prudent to hold off on the refinancing? I don't like having 100% equity in the property because it prevents me from putting those funds to work, but I also don't want to get a lot less money than I can from the lender on the value of the home.

Any opinion welcome

To be honest, I'd really like to stay involved in real estate as I seem to have grown passionate about it, but I'm not sure how since all my properties are a 3hr plane ride away and investing nearby isn't much of an option. 

Curious what people's thoughts are on this topic. I'm 30 and I'm on the brink of financial freedom through passive out-of-state rental income but what now? Work has been really stressful over the years and I would happily "retire" from my dayjob but my family says retiring at 30-35 is nonsense. 

I don't really have a dream job (at least one that I'd be qualified for) and I've got a lot of life left to go. Has anyone else been in the same boat? What have you chosen to do with your time?

^ Bump

I'm looking to scale my rental portfolio in 2020. I've got a handful of rental properties stabilized and I'm ready to take equity out however my buddy recommended I consider applying for a HELOC on my properties instead of refinancing. He said there wouldn't be any one-time bank fees associated with a HELOC and I could use the credit as needed to either scale or take advantage of short-term opportunities (flips I guess...)

In regards to short-term opportunities I understand 100% why HELOC would be advantageous, but flips are pretty tough to come by these days.

What I don't quite understand is how HELOC would be a better move when attempting to scale a rental portfolio? In theory would I take the HELOC money, make an all cash offer on an investment property, take another HELOC on the new property and repay the old HELOC and just rinse and repeat forever and ever ? If so, how is that really any different from refinancing?

I've also read that while the terms vary typically payment is required much sooner than when refinancing.

Any thoughts much appreciated

Thanks for all the replies. I got close to landing a tenant this week but she flaked on me last minute. I'm thinking it might have just been the season as I'm getting a lot more inquiries.