All Forum Posts by: Robert Thompson

I found a piece of rental property with a tenant already in place. It appraised at 120K I have a contract for 82K. I'm putting 42K down on the property. The bank wants to give me a loan on the 40K. 6.5 % with a balloon payment after five years. Is this a good interest rate? Our credit scores are in the 700s. Only problem, debt to income ratio is at 66%. Any banks in the Asheville NC area that can do better for me?

I need to know if it's better to take the capital gains tax hit or do a 1031 exchanges? The house is in CO. I live in NC and want to buy more rental property closer to home.

Here are the factors.

Mortgage is 115K House is worth 310K (I have a buyer lined up)

I bought the house in 89 for 60K It's been refinanced 3 times over the years. Last time in 2011 for 150K

The house has been rental property since 2011

I've done a number of home improvements over the years, but I didn't keep all my receipts.

24k in depreciation since 2011

What do you think? 

Another factor in my plans to sell the house in Colorado and buy more rental property in NC.

I bought the house in CO in 89. It was my primary residence until 2012 when it became rental property?

I want to sell a piece of rental property in Colorado and buy more rental property in North Carolina. 

How do I keep from paying capital gains tax?

Can I use some of the profit to pay down the mortgage on other rental property I own?

I'm not looking to cash out. I just want to swap my property in Colorado for more property in North Carolina.

Thanks

I got into real estate investing purely by accident! I have three rental properties in three states. 2010 I relocated from CO to SC. I needed to sell my house, but the market was in the tank. A property management company approached me about renting my house, so I did. In 2014 I relocated from SC to NC. Found a property management company in SC and rented it out my house there. Bought a piece of property in NC with a guest cabin. You guessed it, rented out the guest cabin. It's great allowing other folks to pay your mortgages. I would like to buy more property here in NC. Possibly, a multi-family home. I have a large amount of equity in the rental properties. Here is where we run into trouble. My income to debt ratio is high. I'm at 66 percent. Banks don't want to loan you money if you're over 45 percent. I was hoping to find someone who might give me a little advice about finding a lender who will look more at my assets and less at my income to debt ratio. I would also like a little advice on tapping into the equity in my rental property for future investments. Any sage wisdom at this point would be greatly appreciated!   

My name is Bob. I own three rentals in three different states. I kind of backed into the property rental business. I relocated from CO to SC. I couldn't sell my property in CO, so I turned it into rental property. Then I relocated to NC. Did the same thing with the house in SC. I bought a home in NC with land which happened to have two piece of rental property on it. I'm beginning to see how real estate is a far better investment for my retirement than the stock market. Looking forward to learning as much about the rental property business as possible.