Realtor · Marana, AZ · Member since 2015 · 6 posts · 1 vote
I own a property worth 98k. I took a 70k mortgage out on it. I currently rent it out for 550 a month. I have the 70k in cash ready to invest in another property. My interest rate is 5% paying 440 a month so I'm pretty much breaking even. What should I do? I originally refinanced to afford house I'm in now, but have got caught up. Should I pay off loan or look for a by and hold? All the properties I've analyzed puts me below the $500 cash on cash is it worth keeping the loan ? Unsure of route to take.
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
10y
I'll send you my banking routing number and acct number lol!! What I would do with 70K is find a lender either conventional or commercial that will finance 85% on SFR's or 20% on a 2,3 or 4 units and leverage 50K of that into 200-250K in financing. buy a couple or few right then Refi those and your off to the races with 20 K tucked away for a rainy day fund and hopefully a good amount from the 200-250K Refi, Then use the Refi $$ to purchase more property.
You must treat money like a slave, work it hard 24/7, then work it's children even harder, then it's children's children. Enslave your money or it will enslave you in the form of mortgage payments and other expenses and debt obligations. Just my outlook on things.
I would also look in another market, doesn't seem like you can achieve what I mentioned above if your stay were the current property is. You will most likely have to branch out and develop a boots on the ground team elsewhere. Good Luck!!!
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
10y
I'll send you my banking routing number and acct number lol!! What I would do with 70K is find a lender either conventional or commercial that will finance 85% on SFR's or 20% on a 2,3 or 4 units and leverage 50K of that into 200-250K in financing. buy a couple or few right then Refi those and your off to the races with 20 K tucked away for a rainy day fund and hopefully a good amount from the 200-250K Refi, Then use the Refi $$ to purchase more property.
You must treat money like a slave, work it hard 24/7, then work it's children even harder, then it's children's children. Enslave your money or it will enslave you in the form of mortgage payments and other expenses and debt obligations. Just my outlook on things.
I would also look in another market, doesn't seem like you can achieve what I mentioned above if your stay were the current property is. You will most likely have to branch out and develop a boots on the ground team elsewhere. Good Luck!!!
Investor · Goodyear, AZ · Member since 2015 · 29 posts · 7 votes
10y
@joe vettorel , I have a similar problem here in Arizona. I have a little less than you to invest in my bext property and the best I am finding in the west valley is 200 per month with 20% down. Maybe I am looking in the wrong place, but I don't want the hassle of a c or d property.
Realtor · Marana, AZ · Member since 2015 · 6 posts · 1 vote
10y
Thanks for all the input!! Ya I agree with you Russel Fugitt. It's tough to pull the trigger on a property only producing $150 - $250 cash flow a month. Something will pop up sooner or later. Hopefully sooner than later. I'm keeping my eyes open for a multi family of some sort.
Investor · Mesa, AZ · Member since 2014 · 176 posts · 54 votes
10y
Hi Joe,
I'd probably look at paying the mortgage off and getting a HELOC to replace it. No sense in paying interest, even 5%, on $70k that just sitting there not currently earning you money. With the HELOC you'll have access to it but won't pay for it until you use it.