Any chance you can pull second position?

I’d love to learn from your successes (and challenges) as we continue to refine our approach.Looking forward to your insights and feedback!

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This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall loss.

Well that certainly is a positive.

I haven't been to Danville for about a year, I'm glad to hear there is some positive news. 

Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

Since they focus specifically on flips, they understand how to position the property to attract the right buyers quickly.If you're open to it, shoot me a text to go over your options and get the property listed right away.

I’ll break down my thoughts on your current strategy and then toss in an alternative idea for you to chew on, since you’re open to almost anything.Your Current Plan: You’re in a strong position with that $1.4M paid-off student rental and the second one carrying the mortgage and living costs—that’s a fantastic cash flow engine.

They were not in a position to budge as much as I had liked.