All Forum Posts by: Account Closed

@Mindy Jensen

Mindy 10 is a nice round number, seems like you have a very specific plan in mind.  How many units do you have now?  

Thanks for the comment.

Russ

@Dawn Anastasi

Thanks for your response, and it is great that you have a target number.  As you said everyone will have a number that fits their needs.  How long will it, or did it, take for you to pay off all of your units once you hit your number?

Russ

Hello all,

Hoping for feedback from investors who have made the decision, or are contemplating the decision, to move from the acquisition phase to paying off all debt.  

At which point in your career did you make this decision and what was the catalyst?  

I have met investors who keep acquiring and want to get to 100 units, others want 10 free and clear.  

I am sure everyone has there own reason for buying properties and the number of units is a personal decision.  Even if you purchased a single property with a mortgage at some point you decided, or the outside factors decided for you, to stop purchasing.  

Thanks in advance for any responses.

Russ

Dan,

Welcome to the forum, I am another local Rochester investor.  As others have said I believe it depends on the market, I have not seen cash offers in Rochester have the same impact as other parts of the country I have invested in.

I believe that @Chuck VanDyne and @Shannon Sadik are correct, especially for someone who is young.  

There is value to owning the properties free and clear at some point, just not sure which point that is.

Your decision is similar to another one you will face at some point, at what point do you stop focusing on acquiring properties and focus on paying them off?

There are valid points on both sides and like a lot of things leverage is a powerful double edged sword.  The bottom line is that you need to be able to sleep at night and only you can ultimately decide how much risk you are comfortable with.

Russ

Hi all, I checked with the city zoning.  The current designation does not not allow storage units to be constructed in the basement, I can apply for a variance but that is a long shot.

I can build additional offices as there are multiple points of egress.  I am going to get some construction estimates and work out what else may be required, like overhead sprinklers.

Thanks for the feedback.

Russ

Bryan,

Congrats on the new purchase!  Which part of the city is the property located?  Are you working with a property management company?

Russ

Gene thanks for your input.  In my case both scenarios, larger properties or smaller properties, are options so deal flow may dictate.  

You bring up another really good topic about investing in suburban/rural area,  I have just started looking into some new areas.  

Thanks again for your feedback and good luck with the single family search.

Hello all, I am at a decision point and would appreciate outside perspective.  

I have a property that has gained a good bit of equity which can be used for another purchase.  In the past I have refinanced properties to tap equity as opposed to selling the property to purchase larger properties.  

There are a lot of smart and successful investors who advise selling a number of smaller properties and consolidating to larger properties for economies of scale, which makes sense.  

My preferred method has been to refinance properties that I own because I know they are well maintained with solid tenants and streamlines systems in place.   While you would extract more equity through a sale the costs are a lot higher with commission, closing costs, and 1031 exchange fees.  Another benefit to refinancing the property, and the flip side to the economy of scale, is diversification by owing multiple properties and not consolidating a portfolio into 1 or 2 large buildings.

What has been your experience either trading up or refinancing and what have you learned?

Thanks.

Good morning all, I have a commercial property (2 levels with office space) that has a large basement sitting empty.  The building is in a small city and I am considering some options to add value by monetizing the space.

I have been thinking about climate controlled storage units or document storage.  

Would love to hear from anyone who has done this, or any other ways people have added value by using dead space.

Thanks for any input.