All Forum Posts by: Lane Kawaoka

Sorry let me rephrase the situation... assuming it is a investment property.

Net proceeds after commission after the sale is 100k.  I would have to pay taxes on that gain however could I buy a 100k property and then do a cash out refi?  Then I would be able to be into a new 100k property for 25k down and 75k loan... 75k in my pocket from the loan and no taxes paid.

I have a 450k property that has 150k of equity after sales commissions. I want to use this to buy 2-4 rentals at 70k a piece. Could I buy 2 rentals cash (140k total) with a 1031 exchange and then doing a cash out a refi pull my equity out (leaving me 50k as down payments and 90k as the loans)?

Could I then just spend the 90k that I pulled out to go on a killer vacation or take my time to buy a couple other rentals with the 90k as down payments because it does not have to follow the rules of the 1031 regarding the timing.

Can your wife get loans 11-20? Any other ideas?

You can't do a Heloc on non-owner occupied (there are actually some who will do it out there buy you are going to only get 50-70% LTV).

I don have any experience with that tool but you might want to just pay the appraisal fee (few hundred) if you truly think your value is higher.  

it tough to find someone to do a heloc on an investment property. The best I was able to find was a Washington cu who would go 70-75% ltv and he rate was higher than the owner occupied heloc of 3.25%. I know things are always changing for the better but its tough.

Agree with those above. 

1) People like to paint a doom and gloom because they are scared of newbies driving prices up.

2) Take everything at face value, 2%-3% rule does not really exist in Washington as it does in other "fly over parts of the country".  Do you own chugging of the numbers to see if they work.  The deals will get better as you gain experience.

Use the Heloc as a short term loan to help make up any deficiencies for your 20% down-payment.  For example say you have 15k and find a great deal that you need an extra 5-10k... use the heloc to make up the difference.

What are everyones thoughts about Kent due to Amazon's new hub? Seems simular to the UPS play in Memphis.

http://seattletimes.com/html/businesstechnology/2023129663_amazonkentxml.html

My initial purpose for the post was to just question the common thinking that buying with all cash is the best strategy (if you have the money). I ultimately believe that the all cash strategy is the way to go but it is not all roses. I think all to often the common thinking is 1) buy a home at 70% value and 2) sell to recover the forced 30% and recoup rehab costs... on an IRR basis the numbers are better than the 20% down strategy but the risk of the market turning in that 6 months to a year is not captured.

For those of who are Refi after the cash purchase... how long are you waiting (6-12 months) are you getting conventional 30 year mortgages or are they portfolio loans?