All Forum Posts by: Rob Deweese

Julian can we sync? I sent you a linkedin invite, we live close to eachother. I would love to hear your perspective, coffee on me? 

Greg we should chat, want to meet for coffee? My treat?

The house is in redmond, was just using Seattle as an example for those not familiar with the area. Its in education hill zoned for a 10/10 public school. It's a 3 mile commute to microsoft which is where I work. I think that you all have a point to stay in the house I am at, but tap the equity to pickup a lower risk lower cost property at least as a first time purchase. I think that in the end the numbers are better in Bellevue assuming the market stays crazy, but corrections are due. And picking up something in Renton, or Bothell wouldn't take as hard of a hit. And honestly the houses in renton and bothell are in better shape in the 400k range, than the 600k crap shacks in bellevue. So repairs are supremely minimal. Its one of those things, money can be made, but how much risk. I think a first deal going with a lower risk to learn the ropes is maybe the best bet. Appreciate y'alls time.

Man just a quick search of renton using the burr strategy immediately adds 2-400 cash flow  a month based of the loan I would get. But the appreciation in renton is a lot lower, it's still 3% or so. But in a down turn it could suddenly be where people flock to that can no longer afford bellevue. Interesting point taken. 

House 1 Renton Purchase 400k, 20% down 80k.

5 years at 3% appreciation loan 463,709.63 - 10 closing 453k. 

Loan balance after 5 years is $288,869.

Equity 175k -80k initial investment - 10k closing cost = 85k

ROI = 48%

Not including rental income which honestly I would just use as a fund for potential problems, or leverage for another loan in the future.

Overall its a better ROI than Bellevue and does not require me to do a cash out re-fi making it a better deal. You made a valid point. Let me know if my numbers are off but I think you are correct.

Goal: Retire at 45 (current 28, making 250k a year)

Why: Can't touch 401k which will be at 1 million in 18 years. I want to ski and enjoy life before i'm 60.

How do I get there: 401k, and buy and rest. 

I have equity and the market is up so I agree with take as much as I can while I can, as long as the numbers are not crazy. I want to pickup another house closer to work that is around 600k, but I do not have to, I can just get another rental outside my area in that strategy. Have not looked at that. It's a smarter way to invest the money but the equity growth last year was 10% alone!. I bought my house 2 years ago and have 250-300k in equity. There is no way that will stay that way. so tap it while you can.

I'm ready for my first rental invesment, cash out re-fi makes it hard to make any money other than on appreciation and loan paydown. it's still positive cash. I am looking for a potential new house for me closer to work and my childs private school. But I can make it all work exactly how it is now. 

Maybe just going in on an investment property is not a bad idea further out. I don't want to bleed cash and I know the seattle market will cool a bit, and when it does investors will dump inventory. Seize the equity now, but is it better to get a cheaper invesment property to make a ****** $200 a month with loan paydown in a poor neighborhood, or purchase another property I can afford in an area that does not take big hits in the down turn, and appreciates well. essentially I am gambling on appreciation.

I am getting paid 3k a month this year alone in appreciation, it wont always be that way. But for the next 2 years it may just be so. Is this a bad strategy or would you go an alternative route?

I want to pickup a second property, I am sold on the book, the method, I am learning so much. But I live in Seattle and houses are 600k. My current house is worth 650k, and I owe 404k on the loan. I don't have enough money down to put 20% on a new house, so I need to do a heloc, or cash-out re-fi. I want to pickup another rentable place that is say worth 600k. The money situation worked out like this:

New loan payment on Seattle house goes from 2300 to 2900 a month, 4 bedroom 2 bath houses are renting for 2900-3000 a month around where I live (3 miles from microsoft).

I pickup the new house payment at around $3300 a month, something I can afford and will put some sweat equity into to force appreciate it a bit over time. 

The question I have is, does this seem like a deal worth doing? There is essentially no cash flow to renting out my house, other than the loan paydown, and appreciation.

I purchased the house for 450k, owe 404k now and the appraisal just came in at 650k. So even if there is no positive cash flow I essentially get paid 3k in equity a year assuming that holds to rent the house, while picking up a second home in the process. 

Does this seem like a bad deal, am I crazy? It's hard to come up with 20% down when the crap shacks are 600k, but this is the market I live in. 

The appraisal value would be around 650, but the house down the street that is the exact same just sold for 700k! This market is hot! I want to find a way to get a second property, rent this one out. Slowly keep adding to my collection and use the money from the appreciation, and overall value to finance a flipping strategy. It seems completely possible. Just figuring out how to get that second home right now, but I need to find cash for auction houses as well.

Live in Redmond, work at Microsoft. Have a nice income and looking to retire early. 401k can't be tapped till i'm in my 60's but I want to retire at 43. Currently 28 with 200k in equity in my house, plus some other cash. I want to get another property, come up with an invest and rest business that finances a house flipping project. I have money, I need backers, I live in one of the hottest markets on the planet. Let's do some business!

I am looking for a way to take advantage of my 200k in equity in my Seattle house to purchase a second home, or find a way to pickup another home in the 600k range. How do you guys use this type of leverage to get funds to purchase another house?