All Forum Posts by: Rob Rayborn

 Hello,

I have 3 single family rental homes aprox net value after RE commissions-Closing costs for the total ($560,0000-580,000). these 3 are all paid off.  I want to invest in more multi-family units.  I have one 5 plex. I really like the Multi Family space.  Plus, I want to increase my portfolio as much as I can for the cash flow because I'm about 4 years away from retiring.   My question is would it be best to sell all 3 single family homes, place funds in a escrow account to 1031 exchange and then invest in a 10 or more multifamily property? ( I know there are certain rules to the 1031 and having 3 separate sales may be a little challenging) Also,  I thought about just refinancing the 3 properties, but the rates are a little high to cashflow well.  

Any other suggestions that I have not listed for me to look at. 

Thank you for your help,

Rob 

Hey Nathan, In agree with the Heloc.  Rate changes upward every when prime is going up.

Thank You for your input.

Rob

Jon, thank you for your input.  This really helps.  I may look closer into the cash out refi with 1 investment property.  And just make sure I have the desired cash flow on my purchases.

Again, thank you.

Rob

Hello everyone. Needing some advice on the smartest way to use funds available to me to build my portfolio with Multi Family properties. I am fairly new at Real Estate investing and a little late in the game at 61. However, I have 3 rental properties (Single Family Homes) that are paid off. I want to be in a position to retire from my business if I choose in 5 years with the cashflow generated from the Multi Family properties I purchase. I have a HELOC on one of my rental properties ( 0 balance, so I have the full amount to use) Also, on the other 2 properties I can do a Cashout Refi or HELOC that can produce aprox. 160k between the both. I realize I need to get on the hop pretty quickly to reach my goal. I can use some help on what the best way to start utilizing my funds and build my portfolio?

Should I only use the Heloc in place to buy a property cash or finance with a down payment and use the brrrr method to purchase more?  Should I use in addition to my Heloc  a Cash Out Refi on the other 2 properties?  

Thank You for your time and advice,

Rob

Investment Info:

Townhouse buy & hold investment.

Purchase price: $99,900
Cash invested: $72,900

This is a 2 Bedroom 2 1/2 bath with each bedroom having a full bath.

What made you interested in investing in this type of deal?

Actually, was looking for a place for my son and his family to reside in when moving back from North Carolina

How did you find this deal and how did you negotiate it?

Zillow. Placed an offer and was rejected. Got a call from the bank 3 days later and they reconsidered on my purchase price

How did you finance this deal?

15 year mortgage

How did you add value to the deal?

Total reno on the place

What was the outcome?

It has been an excellent rental

Lessons learned? Challenges?

Yes, lots. Went over budget on the reno. Not by much but I kept adding things to the original work. Biggest challenge is that I didn't really know how to evaluate the property expenses at that time. This was my first investment property

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, but to be honest I don't know if the realtor is still around and the bank was a community bank.