Buying & Selling Real Estate Discussion

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Sas Sel
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Deciding how and where to invest $50k to increase portfolio?

Posted Feb 17 2020, 09:46

Hi investors! 


I'm feeling a bit stuck and hoping I could benefit from your expertise and/or experience in this field, first some background: 

1. I'm a Canadian (living in Toronto) with a baby on the way and want to quit my 9 to 5. 

2. I bought Condo 1 (SFH) in Clearwater, Florida for $65k (USD) cash in 2016. Netting around $650/month. Condo is likely worth about $95k now.

3. I took out a HELOC on Condo 1 to buy Condo 2 (SFH) in Seminole, Florida outright for $55k (USD) in 2017. Netting around $630/month. Condo is likely worth about $80k now. 

4. HELOC is now paid off but is a whopping 6.94% interest rate with TD Bank USA, which is why I wanted to pay it off asap and not use it to buy a 3rd. 

5. I approached TD USA about a mortgage to get another property in Florida however anything decent now is worth about $100k (please correct me if I'm wrong and if you have a specific example of where and doesn't require renos/work) and they require 25% down but will only approve me for a $45k mortgage, Interest rate 3.75% ARM, due to my debt to income ratio caused by my mortgage in Canada, despite having excellent credit and now two fully paid off condos. 

6. I have $50,000 CAD/$37,500 (USD) to invest and still feel that the U.S. has a better ROI (correct me if I'm wrong?)

I'm not sure where to go or what other lenders could be approached that may approve a higher mortgage (TD is typically very conservative) I'm open and grateful for all ideas and considerations for the best ROI and cashflow.

Thank you!

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CJ M.
  • Rental Property Investor
  • Canton, OH
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CJ M.
  • Rental Property Investor
  • Canton, OH
Replied Feb 17 2020, 10:00

@Sas Sel

Sounds like you're doing ok with the first couple properties so keep following that plan if you have a good PM already in place. Perhaps use part of the $ as a downpayment on another property.

On a side note, I will say it completely blows my mind with how many NEW investors attempt out of state (or out of country) investing when the risk is already high enough in this business when doing it locally...plus in your circumstance, you have a baby on the way...you must have a very supportive spouse!

Will be interested in seeing the recommendations you get here. Best of luck and congrats on the baby.

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Caleb Brown
  • Real Estate Agent
  • Blue Springs
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Caleb Brown
  • Real Estate Agent
  • Blue Springs
Replied Feb 17 2020, 10:04

Like CJ said those condos in Florida are killing it. OOS works if you have the right team and place. I'd stay there and buy more. You can always go to Midwest(like KC) cities and use the 37K for down payment on a SFH or Duplex.

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Sas Sel
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Replied Feb 17 2020, 10:06

@cj.m 

Thank you. Yes I have a property management company that I swear by if not I wouldn't do it. I also have the time to manage repairs/emails remotely and coordinate that way, just need to figure out what the next move is here to either buy a 3rd or wait to save up more.

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Caleb Brown
  • Real Estate Agent
  • Blue Springs
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Caleb Brown
  • Real Estate Agent
  • Blue Springs
Replied Feb 17 2020, 10:07

I'd buy another and replicate it til you get to 10. Then exchange it for a larger building. 

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Sas Sel
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Replied Feb 18 2020, 07:08

Thanks @Caleb Brown . Sounds good so I will continue to save up and see if I can continue to buy in cash, but your KC (Kansas City I'm guessing?) example intrigues me, do you have any info in terms of areas that are good in terms of SFHs there? Also if you know of any good non-traditional lenders like credit unions or whatever else as long as they're safe, I'm all ears. Thanks so much. 

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Caleb Brown
  • Real Estate Agent
  • Blue Springs
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Caleb Brown
  • Real Estate Agent
  • Blue Springs
Replied Feb 18 2020, 07:14

@Sas Sel If you want C neighborhood the best ones are Independence, Grandview, Raytown, certain areas in North KC, and parts of South KC. B areas you'd have to get a loan. I do have a few lenders that could help. Shoot me a message.