All Forum Posts by: Ryan McCook

Here's my situation. I have 9 SFR rentals in Arizona. I'm in a good spot - decent equity, lowish interest, etc. I'm very interested in acquiring more and really expanding my portfolio. I could cash out refi and acquire another 9 or so. However, I'm concerned that I might be buying too high. Cashing out on my current, plus buying more, might just essentially mean I bought 18 properties at a high point in the market.

So instead, I'm thinking about holding onto my current homes with good terms, and investing in an area where homes don't tend to appreciate as much, but where I can buy for cheap and try to cash flow a little. Example, thinking about downtown Fort Worth where I can get some crummy homes on the wholesale market for around 40-50k. Maybe fix up a bit, and get the value to about 100k and refi and get most of my money out.

The thought process is, maybe during a high market, I should put my money where homes don't tend to appreciate or depreciate and try to make a little change with the rents. I know there are risks, but what are your thoughts (experienced investors) in renting to lower income/rundown areas?

Here's my situation. I have 9 SFR rentals in Arizona. I'm in a good spot - decent equity, lowish interest, etc. I'm very interested in acquiring more and really expanding my portfolio. I could cash out refi and acquire another 9 or so. However, I'm concerned that I might be buying too high. Cashing out on my current, plus buying more, might just essentially mean I bought 18 properties at a high point in the market.

So instead, I'm thinking about holding onto my current homes with good terms, and investing in an area where homes don't tend to appreciate as much, but where I can buy for cheap and try to cash flow a little. Example, thinking about downtown Fort Worth where I can get some crummy homes on the wholesale market for around 40-50k. Maybe fix up a bit, and get the value to about 100k and refi and get most of my money out.

The thought process is, maybe during a high market, I should put my money where homes don't tend to appreciate or depreciate and try to make a little change with the rents. I know there are risks, but what are your thoughts (experienced investors) in renting to lower income/rundown areas?

Here's my situation. I have 9 SFR rentals in Arizona. I'm in a good spot - decent equity, lowish interest, etc. I'm very interested in acquiring more and really expanding my portfolio. I could cash out refi and acquire another 9 or so. However, I'm concerned that I might be buying too high. Cashing out on my current, plus buying more, might just essentially mean I bought 18 properties at a high point in the market.

So instead, I'm thinking about holding onto my current homes with good terms, and investing in an area where homes don't tend to appreciate as much, but where I can buy for cheap and try to cash flow a little. Example, thinking about downtown Fort Worth where I can get some crummy homes on the wholesale market for around 40-50k. Maybe fix up a bit, and get the value to about 100k and refi and get most of my money out.

The thought process is, maybe during a high market, I should put my money where homes don't tend to appreciate or depreciate and try to make a little change with the rents. I know there are risks, but what are your thoughts (experienced investors) in renting to lower income/rundown areas?

I agree that would be better if I found those types of terms, but I haven't been able to locate the type of deals that would bring a minimum of 20k. In fact, with costs of financing, my net gain doesn't seem to be much at all. Especially because I can reasonably easily manage the 9, whereas, I would need management company to help manage the apartments.

I appreciate all the advice. @Alan Grobmeier I agree that the market seems to be turning down. Part of me wonders if cashing out, while still covering my existing rents with a little room for cushion would put me in a spot to have 350k for the eventual downturn. Maybe even though my net cost would go up on the existing, i would then have sufficient cash to scoop up multiple properties on the downturn. thoughts?

I also, I want to add, the 9 rental properties are currently on 30 year fixed loans of an average of 4.625%. So cash out refi would result in higher interest and likely some form of 7-10 year term.

Over the last 5 years, I have acquired 9 rental properties in Phoenix, AZ. Homes cash flow approx. $450 per month each (some more, some less), and there's quite a bit of equity now since the market has risen. Amount owed, approx 1.3 m and they are worth approx 2.2 m. I don't have much liquid cash to keep acquiring. I can go the slow route and pick up maybe 1 home a year, or I could consider cash out refi and pick up another 9 or so properties, but the margins on my existing 9 would probably just cover maintenance and rent loss if i cashed out. What would you do in this scenario? I have tried my hand at flipping, but not with significant success. My first 2 homes netted me about 8k total.