All Forum Posts by: Mike Rubin

I have a question as to what you all feel is an appropriate course of action in the below scenario:

In 2013 I purchase a multi-family unit and still work a full-time job. By the time 2015 rolls around I have more than enough saved up to purchase a second multi-family unit. I am now contemplating whether it would make economical sense to pay off the first multi-family unit before purchasing a second one. By paying off the first property before purchasing the second one, I no longer have a mortgage payment and have greatly reduced my expenses thusly giving me significant profit going forward. Or, would it make more sense to continue paying the mortgage on the first property and buy the second one? The obvious answer is to buy the second one before paying off the first, but I am trying to argue against conventional wisdom and see what happens.

P.S. - I do realize I would not be able to pay off the first unit with the amount of a down payment on the second property unless the second property is significantly higher in value compared to the first property.

Thanks for all your thoughts/ideas!

Since foreign buyers are exponentially inflating the prices at which Miami condos are being sold for, is there a chance that this could be a mini bubble? The volatility (whether bearish or bullish) cannot be sustained, can it?

If I were looking to buy a condo on Miami Beach, then did I miss the boat? I hope a buy-point will circle around again soon, though it doesn't look promising.

Hey Chris, always a pleasure to talk to a fellow Avonian. What made you decide to relocate to SC? Was it for real estate?

To answer your question, my target market is still up in the air. It could be Hartford County or Fairfield County, or it could even be Florida. Undecided at the moment..

Both are great suggestions and I will look into both of them. Thanks!

J Scott - Great podcast by the way. You single-handedly are the reason why I am now researching this method of real estate investing.

Hypothetically, say I was going to move into the house and stay there for a year or so, but let the bank assume I was going to stay long-term. While living there I decide to perform numerous upgrades and increase the value of the property. Before I know it (1 year), the property appreciates 40% of its purchase price. I now decide to sell.

What would be the difference in finding a short-term private investor versus taking out a mortgage here? Are there extra costs associated with a mortgage that a private short-term lender does not assume?

When people are trying to rehab homes, why do I keep hearing about private investors to fund the projects? Does a conventional mortgage not work?

I just watched my first episode of Rehab Addict and, she too, uses private investors.

Can someone please explain to me why a mortgage from a bank won't work?

What books have you people read that you would then recommend to someone else trying to learn about flipping properties?

Preferably something up-to-date, and includes pictures (if possible).

Kelly N. - Thank you very much for the response. What limits do you use?

Joe B. - I would like to think that's true, but it's a dangerous assumption. Working at an insurance company has taught me to pay specific attention to detail.

I've heard Loss of Rents is an optional coverage worth taking up, but what else am I missing?

Sorry if these sound like newbie questions…

1) Under normal circumstances, what does a landlord policy cover?
2) Is a landlord policy necessary?
3) Which coverages aren't normally offered that a landlord should probably take up?

Thanks!

At a value of 111K and an NOI of $7,500, I receive a Cap Rate = 6.75%.

With a Cap Rate = 6.75% it is an attractive offer pending some other variables only you can foresee.