All Forum Posts by: Yuta Tamura

Looking for some wisdom from my fellow BPers!

I am considering doing a cash out refi for a rental property purchased in July 2017 with a 30 yr. 4.375% fixed, for the purpose of acquiring acquisition capital. 

With the general chorus seemingly trying to promote more leverage, BRRR, and HELOCS or cash outs for further acquisitions, I was wondering whether there was a general consensus on when it is NOT considered a wise decision to cash out refi for the purpose of acquiring more properties, especially in this rising interest environment & near correction speculation. 

Loan balance: 77k
Current market value: 140k 
75% LTV: 105k
Closing costs: 7-8k
New interest rate: 5 - 5.5%
Cash-out: 20k (assuming above conditions)

I understand that the final cash out, assuming all the conditions stand, will only net about 20k. However, with my current accumulated savings and the cash-out net, I would then be able to acquire another property. I have reserves set aside for all of my current rentals. 

A refinance will result in higher monthly payments which would reduce the overall cash flow; however, I'm more interested in acquiring more properties quickly so that I may achieve adequate passive income to replace my full-time work income. 

I have tried to look into a HELOC; however, the great state of TX apparently has regulation preventing HELOCS on investment properties.

With that being said, is it logical to cash out refi, resulting in a higher interest rate, higher leverage, and subjected closing costs, all for the sake to acquire an additional 20k in capital for the next acquisition, OR will it be wiser to remain patient and either save for the next property or find a different source of capital other than the equity in the home. I'm asking in light of the current environment of rising interest rates and potential near-correction. 

Any assistance or advise would be greatly appreciated!

Hi all, 

Can anybody recommend a reliable used appliance/S&D store in the Houston metro area who will ideally do the installations as well? I find a lot of small "shops" that seem very shady, not to mention they will not answer their phones. I plan to check out some local HH or Sears but in the meantime, if there are any referrals to credible shops instead, I would definitely appreciate it. 

Thanks BP community!

@Jonathan Bonck, are you still satisfied with your CPA? If so, would you mind sharing their contact information? Thank you in advance!

Would greatly appreciate some input from the BP community on this. I am currently renting at an apartment and am looking to purchase my first investment property. I would really like to stop burning money as soon as possible and instead pay into the equity of a property of my own. However, I am at a loss as to which path would be more ideal, from an investors perspective. 
I understand that owning a house to live in may be considered a liability. In which case, how should I go about obtaining a primary residence without it being a liability? I would ideally prefer to house hack; however, there are essentially zero multi's in my area. Therefore, I have come across two options: 

1. Buy a primary residence as an investment (below market value, rehab to add value, move in and build monthly equity for year or two as OO, meanwhile look for investment properties from that foundation, rent out property when I move to another).

2. Buy investment property while continuing to rent, then rehab & rent out property. I feel that in this case, renting would be a greater liability than actually purchasing a primary residence, even at retail prices. 

To add another spin, if I no longer wished to stay in the area and decided to move to another city in a year or so, how would this affect me in the long term should I proceed with one of the options above?

I am learning so much from BP and am constantly amazed at the generosity of this community! I am eager to pull the trigger and would greatly appreciate any advice. 

Thank guys!

Thank you all very much for the warm welcome! 

@Ari Gable I appreciate the information! I will contact Charles as soon as I can. Are you also a part of the Houston BP meetup? 

@Courtney Downtain Hello Courtney! Great to get in touch with you. I would love to work with you regarding deals, please feel free to contact me if you are looking for buyers! Angleton is nice so far, very quiet and peaceful. Cooler market. I was browsing some Alvin properties the other day, what do you think of the Alvin market? 

@Kenneeth Strauss Kenneeth, thank you for your contact. I am actually planning to move to Houston within the next year and would love to work with an investor friendly realtor once I'm there. I will keep in touch. 

Hello BP community! 
I am a new investor originally from Colorado and now residing in Angleton TX (45min south of Houston TX) for work as an engineer. I was initially introduced to BP through an investor friend from Colorado, with whom I am part of a group of investors based there. The BP podcasts and forums has provided such incredible guidance and knowledge, I am excited to connect and touch base with the myriad of experienced investors in this community. I am primarily interested in buy & hold and flip deals in the greater Brazoria County (Lake Jackson/Freeport/Angleton/Pearland areas) but am interested in Houston as well. Looking to purchase my first investment property by this year. I have been absorbing as much knowledge as I possibly can and would greatly appreciate any tips and advise. 
I would also greatly appreciate any recommendations for realtors, mortgage brokers, hard money lenders, and general contractors in the area, as well as any investors looking to partner!

Looking forward to being a part of this community. 

Yuta Tamura