All Forum Posts by: Steven Baca

@Eliott Elias  One thing about the School System in Vanderbilt, TX...Industrial ISD is a great school system and has been that way for decades!  I think many folks are employed by some chemical plants in the area.

 I had a deal out there, 2.5k down and $400 monthly payments, and could rent for $1000. I just didn't like the area 

@Steven Baca I've been in the mobile home investing business since 2007. Like any business, there are ups and downs. Overall, it's been quite profitable. If you're going into this niche, it's best to study the market and figure out exactly which areas you want to invest in. From there, it's just a matter of learning the market in those areas and networking to find leads. 

Feel free to send me a DM if you have any other questions. Hope that helps! 

I don't like this market unless you're the land owner who charges lot fees. 

Have you heard of Vanderbilt Texas? What do you know about that market? 

Thank you for the replies...I should have added that I am in North Carolina...(in case location changes the lending practices)....

@Steven Baca ok, I understand where you are coming from.  I think purchasing a primary home might still warrant at least thinking about it a little. Here's 2 other items to think on as well:

1. HELOC - getting a line of credit in the 2nd lien position on an investment property is pretty impossible. I don't know of any lenders in Texas that do this. I think this option might be out entirely. In order to get your equity out we would either need to do a cash out loan (which means your rate and payment increases) or take a Line of Credit where it assumes our mortgage balance. This means you would be paying a higher rate AND now having an adjustable rate as well. Now could you move back into the property and then get a HELOC? Yes, but I'm not sure if any lender here in Texas would be ok with you having a HELOC and occupying your property for only 6-8 months. Most want 12 months...and then after you move out they will close the HELOC. We have some state specific rules to cash out loans here.

2. Paying off the loan - there's no need to pay off the loan and then refinance again.  It's just the same as refinancing above except now you have taken out 401K money at a penalty.  So this route just makes you pay more fees.  

I still feel that considering purchasing another home with 3%-5% down should be explored some.  If the goal is to purchase another primary home in 6-8 months....I feel like we should analyze doing it now.  That's my feelings on it.

Hope all of that makes sense. 

Steven,

Great question and situation for discussion. I do have a few questions that may help in figuring out what is best for you as that is different then what is best for me or anyone else giving advise.

In your post you spoke about "Cashflow" and a "1Million" Goal. What is more important? From your answers to other comments on here I would believe that there is a fear of losing the cashflow. 

What do you feel that market is going to do in your area over the next 1,5,10 years?

How does scaling your debt make you feel? Are you okay with having all of your properties highly leveraged or does that stress you? Would you rather less properties paid for or with low balances?

Personally, I would do the HELOC and get into another property. If that next property has the means to cash out and pay off the HELOC with in 18mnths. If it is longer then that I would do a cash out refi on the first property and buy the next investment.

Hope this helps.

@Steven Baca thanks for posting.  Always great to hear from a fellow Texan.

Why are we examining just buying another primary home using 3%-5% down to purchase it?  That would have the least amount of money out of your pocket with the lowest interest rate you could find.  Why not just to that?