All Forum Posts by: Jason Baker

Quote from @Sean Hudgins:

What is your reasoning for selling your rental? Unless the rental is underperforming(and if it is, why... is it something that can be fixed?), keeping the assets is the best way to build a large portfolio. Do you have to sell the rental in order to pay off the primary loan? you could look at a Refi for the rental or both rentals, trying to optimize the return-to-leverage ratio and use that money to pay off the primary and get your HELOC.

The mortgage on our primary is solely in my mom's name. I cannot secure a HELOC that way even with full POA. The rentals are doing well, just need to access the equity I have and a HELOC on investment property is not available. With rates as high as they are, I figured it might be better to just get a HELOC. I'm not keen on selling assets either but haven't figured another way to access the equity we have.

Here is my scenario. I am a licensed Realtor in Volusia County, FL. I own two rentals in New Smyrna Beach, FL that bring in $5k monthly in gross rents. They are newer homes, less than two years old and they are free and clear. Our primary residence has a ton of equity and a mortgage of roughly $285k with a value around $800k. What is the best way to utilize this scenario? I'm planning on selling one of the rentals in February when my tenants move out. I will then pay off the mortgage on my primary residence and secure a HELOC. I want to start using the BRRRR strategy to acquire more properties. I'm sitting on a decent amount of equity and seeking the best way to use it to build a large portfolio and long term wealth. The loan on our primary residence is currently in mom's name which is why I need to pay off that mortgage before securing the HELOC. I would like to hear from some seasoned investors on a viable path forward for this scenario. Thanks & God Bless!

Thank you all for the great information and insights. I’m definitely left with more questions but also feel it’s possible to make this happen. I definitely do not have a net worth anywhere near the prices of the any commercial property I would be interested in purchasing. I’m not really feeling the syndication for only 7-10% either, I could put the $400k in with my mutual funds and usually do better than that. I really want to build a portfolio of commercial properties that ensure long term wealth and passive income for myself and my family. I’ve read all these books and many stories here on BP about people starting with nothing and achieving that level so I know it’s possible. I’m not interested in SF units, I’d prefer to own one complex with multiple units as opposed to having doors spread all over the county or state. I’d really be interested in storage facilities & possibly a MH park if it was a nice one. Anyway, thanks again to everyone for taking the time to respond, I’ll keep posting as I progress along this journey.

@AJ H.

That sounds great! I’ll be back in the states by springtime and will be selling the properties in California for the same reasons. I’m hoping the market will hold up there until then. I’d like to connect and maybe we can do some business in the future. Merry Christmas

@Kim Meredith Hampton

Thanks, Kim, and Merry Christmas! I really like the Orlando area as well, the areas you’ve mentioned are where I’ve been looking as well as Duval county. Thanks for your input, I’d like to connect and maybe we can do some business in the future.

@Arn Cenedella

Thanks Arn,

That’s pretty much the price range I’m looking at so at least I’m in the right ball park.

@AJ H.

I’m looking to build wealth. I feel the value of the house in California could be put to work, right now it generates nothing but a tax bill every year. I’d like to buy a small complex, I found a couple in Florida in the $1.3-$1.7 range with16-24 units, class B & C, not too bad, that piqued my interest. I’m pretty solid on crunching numbers with residential-sized MF and have owned and managed rentals in the recent past but I’d like to step up. I don’t need it to survive on and even with the $400k down, I would still have $100k in the bank liquid for costs that may arise. I would ultimately like to hold the property for a time, refinance and on to the next until I have a solid portfolio of properties. I have construction background in multiple trades and can be hands on for small repairs and upkeep/maintenance if necessary. I’m also open to storage facilities and possibly retail.

I’ll be selling a house in California in 2021. I expect to conservatively have $400k from proceeds. I am looking to use that amount as a down payment on an apartment complex or storage facility. Is this a reasonable amount to bring to the table on a decent property? I live in Florida and would ideally like to have a property close to home but I’m open to other states since the property would be under outside management.

Thanks and best wishes to all for a healthy and prosperous 2021 🇺🇸

I have a SFR in California that will be sold and looking to use proceeds to buy apartment complex or storage facility. Class A or B is preferred, not interested in bad areas or low income properties. I should easily net $400k from the sale. I'd like to use that money that's in the SFR to build some wealth and passive income. I live in Florida but I am open to other areas if the numbers are good. What is required for a down payment in a commercial deal? Is this enough to get in the game? Anyone work in Florida commercial real estate or know someone who does?

Thanks and best wishes for a prosperous 2021 

Anyone have suggestions for a real estate door hanger template?