All Forum Posts by: Sal M.

I did some analysis/modeling comparing 4 scenarios 

1) Continue Renting in CA

2) Cash out Refi and Reinvest in TX

3) Sell and Reinvest, pay Capital gain tax

4) Sell and Reinvest with 1031 Exchange

Option 2 seems the best from a profit and feasibility perspective.

@Kris Wong That exactly is my concern, will I be able to find multiple properties in Austin totaling to 2M in 3 months, to complete a 1031 exchange. If i put my house in CA for sale next week, it may close in 60 days. That will leave 105 days from next week to get my act together for the 1031 exchange. Is that possible while holding a full time job ? Or should I rent out the CA home for another year, use the year to plan things out and then execute the sale and 1031 next year. I think with a 1031 exchange you can sell one SFR and purchase 10 SFR’s. Can somebody confirm that? Some folks say you can only buy 3 SFR’s.

Jonathan Pflueger You got me right, I got into real estate by accident. And developed a passion for it. My end game is to become a full time investor after retiring. But for now and the next 15 years, I will be working my current job as a techy( big data Machine Learning), so dont have much time for real estate investing and management.

I have used several websites during the past 6 years. My advice, do not use websites that require the prospective tenant to login and do something. Smartmove is one to avoid. These days i like houserie. Have the tenant complete your rental application form( pdf or hard copy), and their signature providing landlord to use their info for background check. Then go into houserie and enter info , pay the thirty bucks and you have a comprehensive report in minutes.

@Dan You make a compelling point. I think I should sell that SFR in CA and reinvest in Austin, TX doing a 1031 exchange. Its hard to manage rental properties remotely, hence I prefer investing in my current home town of Austin. Anybody here know the Austin market well? What are the best investments in and around austin, if i have 2.5 million to invest. Also, I am trying to model this out in a spreadsheet, if anybody has one , i would highly appreciate if u can share.

Jonathan Pflueger please share your lenders info. I am new here. I am replying using the BP app on iphone. I don’t see an option to PM you. I spoke with Chase bank today, they will not go to a jumbo loan on cash out refi. So the max loan will be 680k. That means i can take out 210k max. Bofa can go up to 70% of LTV, they have offered 400k cash out at a 5.75% and $4000 closing cost and appraisal fee of $600. Both refused HELOC since its an investment property.

Yes, that location is seeing some good growth , hence keeping it purely for equity growth and i had a long term tenant in there. Tenant is moving out now. So, I am thinking of couple of strategies. 1) To sell and reinvest in other properties, i will have to do a 1031 exchange since it has been about 5 years since it has been my primary residence. 2) continue to rent it out and wait for value to increase further. I have a new tenant willing to pay 4000 pm. Take cash out, and reinvest. Either via refi or HELOC. And maybe sell it in few years.

I own a SFR in Union city, CA. Its market value is 1.1Million. I have a 30 year fixed mortgage at 3.375% on it. Outstanding balance is 470k. I have been renting it out in the range of 3500 to 3900 per month for past 5 years. I want to take out some equity from it and invest in rental properties. Whats the best way to do that? And how much can i take out ? I had paid 750k for it in 2005. I am guessing it has to be a cash out refi , because HELOCS are hard to get on rented homes. I spoke to a mortgage officer from chase bank, he said i can get 200k cash out, and the new loan of 670k will be a 7/1 arm at 3.875%. Getting more cash out puts you in the jumbo loan category and thats hard to do. For HELOC, he said thats very risky and he will not do it. I have good W-2 earnings and a 800+ credit score. Please advise and recommend any bankers, brokers who can help me with refi or heloc so i can cash out my equity. Thanks