All Forum Posts by: Ryan Wilson

@Kristina Heimstaedt 

Thanks for the response. As you mentioned, I have been thinking of Multi units and / or several SFR vs currently having everything in one SFR, to diversify. But at the same time I don't want to be the one that doubles down at the top of the market and then it have a pull back.

@Kyle McCorkel

Sorry, Currently 15 year about 8 left and refi figured off 30 year.

@Kyle M.

Current - Annual cash flow ( considering principle reduction) 10,800 / Equity $150,000 = 0.072

Refi - Annual Cash Flow $4800 (considering principle reduction)/ cash invested $66,000 (30% down for 70% LTV) = 0.0727

Am I missing something or doing it wrong?

Thanks

@Aaron Klatt

I am in the High Desert and this is really the only market I know.  As you mentioned this market seems to swing up and down quit a bit.  It is definitely on the higher side now, and just not sure how much upside is left.  I am comfortable with everything now, but just trying to judge it by numbers, and see if it still makes sense to keep.  Really just trying to see how everyone else re-evaluates a property after a large appreciation, to see if there is info or formulas I may not be aware of.

Any thoughts on current market, since you are semi local?  More upside or time to sell?

Thanks

@Kyle McCorkel 

Thanks for the input.  I love podcasts and will be sure to listen to that one.

I did those quick formulas.  Current ROE and ROE / Cash on Cash after a Refi and they both came out essentially the same, at about .072.  This seems like actually a decent # but is it compared to what others are seeing?  

Also, I realize there is a lot of cost associated with sell and buy of another property that would cut into profits, but is the any other benefits.  As I mentioned, depreciation is based on original cost, so purchasing a different property at today's current value would offer high depreciation.  I realize that is not a huge amount, but just trying to up my game and see if there are other considerations, I might be missing.

Thanks

I am trying to decide if it is time to sell my 1st (only) SFR Rental. I want to do more deals, but currently I have just been reinvesting everything back into the first to pay down the mortgage. My property has about doubled in value in the 10 years, but rent has only slightly increased. It has good cash flow, but if I was to have to purchase today, at its value, it would not make sense. SO, is there a formula to calculate current equity value or resale value vs income, I should look at. Also, depreciation is obviously only based on half the current value, so I think that would come into consideration somehow. I have a good tenant with no issues, and do not pay a PM, so it is very easy that way.

Looking for opinions on how to proceed. Current options 1.) cash out refi and purchase in other markets, if I can find deals, 2.)  look to do a 1031, 3.)  sell, pay the CG tax and look at all investment options, ( Realtyshare or other crowdfunding) 4.) do nothing, continue to with current cash flow.  Additional info, I am a business owner, very busy with my business, no time to handle flips or that kind of thing, just looking for solid investment / cash flow, and need tax benefits.  

Also, found Bigger Pockets a few months back and love it, just wish I would have found it sooner!

Thanks for all your help

So it appears my suspicion was right it's probably time to sell and move on. I would like to improve my monthly cash flow and build a nice portfolio. Do I 1031 for another on SFR for around the same price that has better rent, look for maybe 2 for the price of One (hard in my market as the current is a entry level Home), or do I try stretch the equity to as much debt for as much as I can buy? Example $150,000 equity as down payment LTV 75% and try to buy $600,000 worth. This is my only rental, and feel I have learned to crawl and now ready to walk, but not trying to get ahead of myself and start running. Also my loca area in So Cal has appreciated very rapidly and I don't think there is much opportunities for good cash flow purchases. Any other markets I should checkout?

Thanks in advance for all of your recommendations.

New to site but have been reading a lot of content and enjoying it. So here's my question .

I have SFR that I bought in 08 at auction. I purchased for around$115,000, and has been a great rental, but value has nearly doubled ($220,000) and I have continued to reinvest all excess proceeds back into principle payment, on a 15 year fixed, so I currently have a lot of equity in the property. Rent is $1300 with steady tenant .

What is the smart play here, do I refi and pull what I can out and purchase more properties with that equity , (but don't think the cash flow numbers would work with rent to mortgage at that point), or is it time to do a 1031 instead? 

I appreciate your different opinions.

Thanks