All Forum Posts by: Yon Chung

@Bobby Lee Fellow CPA/Investor here. Yes that's the upside of leveraging. Without the cash out refinance you wouldn't have the additional 2.5% cap rate. That's part of BRRR most don't mention: the additional payment due to the cash out refinance but that is part of the calculation. Good luck!

Syed, I'm a local realtor.  Let me know if you need help - questions about landlording, finding local property manager and etc.

Hi Kristen, Thank you for your response!  I ended up using a hard money lender for one of the properties and used my husbands work loan for the second.  Slowing paying them off with positive net cash flow!  yay!

@Jon Gluckman Looking for a under $1M loan for a 8 unit property in Cleveland OH.  Are you still in business? How can I get in touch with you?

Hello all!  I have been in RE for the past 16 years.  I've been working during that time with almost perfect credit scores so getting loans to purchase rental properties was a breeze.  Now I am not working (my husband still works) but have two properties that are just about to close but the loan did not go through because I am no longer working.  I have 100k of 130k.  The propertirs already have tenanta and have been managed by my realtor.  They are happily living there and no plans to move out soon.  They are both positive cash flowing properties.  The sellet just put in a new furnace.

Hard money lenders cannot lend me the money as the 65k x 2 properties is too low of value.   Family and friends will not lend that to me ( as they are not into RE and dont think of this as an investment) What other creative ways to get the 30k?  Help!!  Need to close in 2 weeks. Thanks in advance!

Hello All!

I am a VA resident (with 4 rentals townhome/SFH under my belt) looking to branch out to low cost/high rent income areas. VA is way to expensive and there isn't much cash flow... I had looked into NE, OH and now looking in to Philly (mostly multi unit properties).

I lived in the suburbs of Philly and used to work at my parents store on Lancaster and 40th way back when.  I never thought about Philly every being as and up and coming area but it looks like it is taking its turn. and it's about time!

So...  I work full time and have 3 kiddos and take way too many hours looking for deals online.  I am kind of getting tired of doing this myself.  

What options do I have?  I'd like to just start owning one and start getting paid!  colleges for 3 kids are not cheap!  =(

I am going to be up in Philly this weekend for a wedding and would probably drive around some neighborhoods.  Any recommendations on where I should look?  Any of you realtors work on the weekends????

Do you guys usually look for pre-occupied properties?  or do you worry that the renters might not have good history?  

I am aware that some streets within a neighborhood could be great/not great.  Would you consider buying in a not so great street as the prices will be lower and hope the street will become a just as nice as the next street????

Sorry random things.  it's late =)

Looking forward to your comments!

Yon

No... I refused to believe this is the same house.  That is amazing.  I am assuming the furniture is used for staging and not part of the sale??  Amazing interior design to go along with the house.

@Dante, Thank you for your input.  Are you saying for you, buy and hold 20 homes, you are seeing a positive number on your books??  So is it more the value in total not just financial return? Thank you!

Hi, I am a CPA.  You can look at Publications 527 page 6.  It will tell you that you will need to start depreciating the expenses to renovate when the property was placed in service.   more can be found:  https://www.irs.gov/pub/irs-pdf/p527.pdf

Hope this was helpful to you.

Hello All, I would really appreciate your thoughts on my situation now.

I have two rental properties.  One of which, I am seriously considering Cash out refinancing at a bit of a higher rate (4.125% 30yr) then a regular non-cash out refinancing at 3.5 at 15yr.

I have about 360k in equity and will be refinancing either 130k or 200k with cash out (of 70k).

Does it make sense for me to take the higher rate for longer period and do the cashout?   

   -Pros to Cash out: it will let me leverage my equity to purchase more rental properties.  Longer terms will bring down my monthly expense which will let me borrow more money.  

   -Cons to Cash out: It will take 30yrs for me to eventually get my full rent as my passive income.  Most of the rent will go toward interest expense

   -Pros to no Cashout: I will be done paying off in 10 years.
  -Cons to no Cashout: I will have to wait year to save enough to put a deposit on a smaller investment property.

I have college expenses to worry about starting in about 6 years.  I don't know how I will utilize my rental properties to pay for that (what are you experiences?) and possibly have enough properties left after sending 3 kids to college to afford my retirement.

Thanks in advance for your insight!!

ps I am not looking for hard cash or private investors.