All Forum Posts by: John Schutt

Purchased a property pre-Covid to flip. Took over a year to complete, and interest is killing me. House is on Market, getting showings, but no written offers. Just dropped the price $10K. 

House is priced at $539,950, and I need at least that to pay off the LOC I was using to pay for the flip. Considering converting LOC to mortgage and renting as rental values are $2500 - $3000.

Anyone have any other suggestions as to creative ways to re-finance? 

Any suggestions greatly appreciated.

John S.  

Thank you all for the very helpful advise!

Hi all!

I bought a C* B- 8plex 18 months ago via 1031 exchange with a plan to fix up units, raise rents, and possibly sell in 3 to 5 years.

Got a call from an investor with an offer $100k over what i paid for it just a year and a.half ago.

Question is, do i sell and pay $75k in cap gains from 1031 and deprecuation, or hang on, rehab units and sell in a few years?

Feel like next administration will be raising cap gains tax, so is now the time?

thanks in advance.

John

@Upen Patel

Uten,

Thank you for the HELOC suggestion. Is it possible to obtain HELOC on investment properties?

@Kim

Thanks for the idea. What do you see as the advantage of a HELOC against one of the SFRS?

@Seth 

Thanks for the advise. It seems logical to use the paid off SFR's to acquire the triplex, with 100% financing since the triplex still cash flows well.

I currently own 4 SFR rentals in the Kansas. 3 are paid off. Each worth approximately $250K

Recently I came across an opportunity to purchase a triplex. It was suggested that I could get a commercial loan with no money down if I used one of the paid off rentals as collateral. All previous SFR have traditional 30yr notes.

After a bit of number crunching I discovered that while the property would cash flow with 100% financing, it carried a larger upfront cost to close, and a slightly higher interest rate. A traditional 30 year mortgage would provide higher cash flow, but with 25% cash down payment. ( approx $60K)

I have the cash for the down payment, but was thinking I should keep the cash for repairs and upgrades to raise rents, or better yet purchase another triplex. 

My question to you RE guru's is should I use the paid off rentals as Leverage, or go for the cash flow?

Thanks in advance to all respondents,

John

Chad,

John Schutt here. Welcome to BP.

I too, live in Kansas City, and am an investor, real estate agent and residential architect. 

I have a few investors I work with finding flip and long term hold properties, helping them remodel/redesign, then market and re-sell or build their portfolios.

Give me a call or shoot me an email and discuss what is it that you are looking for to see if we have any alignment.

John Schutt

studio605.com

512-423-9340

Along with being a realtor, I also do a lot of architecture. I use aims mapping all the time to help discover a properties zoning, lot size, flood zone info, taxes, square footage etc. 

I think it is a better tool to use after you identify a property. May not be very effective as a search tool.

Keegan,

I am Licensed Agent in Kansas and working on my Missouri License. I too, buy, and either flip or hold properties for long term rental. That said, I only do a few per year, but I am look at various sources like MLS and Bigger Pockets for deals daily.

In addition, I am a residential architect  and have a good network of construction subs and hard money lenders that might be able to assist you.

John Schutt

Better Homes and Gardens Real Estate - Kansas City Homes

Leawood Office