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All Forum Posts by: Ryan Roesch

Ryan Roesch has started 4 posts and replied 11 times.

Post: What to do with a ton of Equity

Ryan RoeschPosted
  • Charlottesville, VA
  • Posts 12
  • Votes 0

Joe, thank you for your response. CF isn't great at all either. Mark, I'm currently in a college town with older stock. Where else would you look?

I appreciate your input Adam.

Post: What to do with a ton of Equity

Ryan RoeschPosted
  • Charlottesville, VA
  • Posts 12
  • Votes 0

As the title/description states, we have a rental that just had appraisal done that came back really high and now the numbers really don't make sense. Any feedback is always appreciated.

In the mid 90's my grandfather had the foresight to purchase and renovate a four unit property right next to the University of Virginia's football stadium.

Fast Facts (approximate):

  • Market Value: $675,000
  • Mortgage: $170,000
  • Equity (20%): ~$370,000
  • Total Rent: $3,600
  • Land Assessment: $300,000

We rent this particular property through a property manager who says part of the reason why these 2/1 unit's rents are so low are because there aren't in-unit washer/dryers which I get. Some 2/1 college rentals this close to the university can command well over $1200. Even so, the numbers still wouldn't be great.

Our goal is to grow the portfolio. We have a duplex and three other single family homes in the area with some equity. Two of which can be converted to duplexes via additions. We also wouldn't be opposed to taking equity out and investing it out of state. 

I also want to take into consideration the intent of the University. They seem to be buying up more property year over year and eminent domain could be a concern in the future (one of the SFH's is next door as well). Saying that, I'd be hesitant to 1031 in case we're able to to build a larger apartment on the land or get a sweet offer from UVa.

I guess my question is what are some options in considering this scenario?

@Amy H. I'm meeting with my parents this weekend so I'll post an update in the next couple of days. But you're right, I shouldn't cast blame upon the mortgage company or anyone besides ourselves until we've discovered all the facts. Thanks!

@John Nachtigall My father called and had some forms sent back to him. He said he's playing it nice for now to see what happens. Thanks for the advice.

@Ryan Naylor This loan is from pre-2013, so PMI is not for the life of the loan, but will do.

@Anthony Bellesbach if the original loan amount was $325,000 and the lender charged 0.75% on that amount for PMI/yr, it would be close to $200/mo.

@Tchaka Owen - Exactly, I really hoped we're missing something here. I appreciate your advice though. I'll get with my dad and will reach out to you for that number. Thanks!

@Benjamin Piecenski - Thank you for that. I did read something on the CFPB, so I'll be sure to discuss that with them.

@Russell Brazil - Good catch. I just modified the post. Thank you.

Long story short, my my grandfather's heath is on the decline, so my parents are agents over his estate. My parents have been sorting through everything over the past six months and my father just realized that since my grandfather used a VA loan on one of his properties, he's been paying PMI for 12 years now at ~$200/mo. After he hit the 78% threshold, that's ~$12,000-15,000 gone (ouch).

I want to figure out if the mortgage company is responsible at all. I'm not optimistic, however. Outside of some articles saying the mortgage company is required by law to remove PMI at 78%, I can't find much on what people do in our situation. Any insight or advice would be great. We're in Virginia if that matters.

@Account Closed Yeah, the tub is fully functional. I'll keep that in mind if and when the tub becomes defunct.

Thank you everyone for your responses! Sorry for getting back to you all so late. I'm in Germany for work and haven't been as active on BP as I'd like to be. It looks like I'm leaning on keeping the tub just to be safe. 

About a year ago, I purchased a 3bd/1ba single family property that needs some work in a college town (< 1 miles away from the football stadium). I'm currently living in and renting it out to a college buddy and a current student at the university. Ideally, I'd like to renovate the property, refinance (PMI stinks), and put that money towards more real estate.

My question is: would it hurt the value of my property if I got rid of the bathtub/shower for a standalone shower? 

I guess my main concern would be reducing the applicant pool when it comes to families with young children. However, the neighborhood that the house is situated in doesn't have many young children living in it, and more specifically, the street I live on has absolutely no kids and is mostly comprised of young professionals, graduate students, or retirees.

I'd appreciate any and all input on this. 

Post: 4-plex in Terre Haute, IN. Great cash flowing multifamily

Ryan RoeschPosted
  • Charlottesville, VA
  • Posts 12
  • Votes 0

Hi John,

Could you send me more info, please? roeschrt@gmail.com