I wonder if this is simply another one of your out-of-the-box strategies to prevent legal and financial claims against yourself.For any remaining investors associated with Justin, please do not hesitate to contact me directly if you have any questions about this situation

With a $60/mo HOA(external maintenance not included with the exception of fencing) and 6.5% interest rate, my monthly mortgage (with taxes, insurance, HOA, etc)  will be around 2600/mo.

And I want to see if I can use some leveraged strategy here.

Let's say you put 15% down on an investment property (2nd SFH, New Construction) and with property taxes, homeowner's insurance, and PMI the monthly mortgage is $4,300However, in the market (location), most of the rents are around $3,500-$3,700With an interest rate of 7.6%Would you still buy the property knowing that you'll lose $800-$600 per month, but hoping to refinance at a future date (4-5%) to have cash flow, and also with appreciation since it's a good location and it's a new construction?

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.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

This quick and profitable transaction highlighted our efficient whole-tailing strategy and ability to maximize returns with minimal investment.

Very well qualified borrowers can often obtain favorable terms from their existing banking relationship and sometimes even borrow against non-real estate related capital assets such as money market, life insurance or investment accounts.

My properties in 2 states account for about 80% of my cash flow, but the 4 SFH I have in Birmingham account for only 20%.I don’t want to sell as I’ll incur lots of tax (as they were part of a 1031 in the past), but wonder any strategies like seller finance, etc that could possibly result in higher returns on these properties.I am curious what other BP landlords do when a few properties in their portfolio aren’t pulling their weight….Thanks!

I'm curious if anyone in the Los Angeles area has employed this strategy? 

Taxes are up, insurance in some areas up drastically.