All Forum Posts by: Alan Hale

Thank you for the advice Theresa. I was pretty much leaning in the direction of purchasing a new property. With your and others advice I think that is the route I will take. 

My goal is to by one or two properties per year for the next 4 or 5 years. I will reinvest the the cash flows back into other properties. But not having much equity in my only two properties kind of makes me nervous. 

Hello my BiggerPockets people,

I have been out of the real estate investing game for a while now and I am now looking to aggressively jump back in. I recently just started a part time job and I will now be netting and saving about $2000 per month. I currently have a rental property that is about $20,000 under water and that is barely cash flowing. I also currently live in a house that I only put 5% down on last year and have to pay PMI.

My questions are:

1. Should I pay down the rental property to get it under the market value and then refinance so I’ll have more equity stronger cash flow and less vulnerability ?

2. Pay down my primary residence to 80% of the homes value, refinance for lower payments and knock off the PMI.

3. Save for a 20% down payment on a new rental property?

Current rental-3.75% interest rate PITI=$675, rents for $830

Primary residence 4.875% interest rate PITI=$1883.00, 30years.

I appreciate any and all feedback!

@Joshua Gordon I would say go for it if you believe you can take the money and make better than a 10% ROI in another investment. As they say a bird in hand is worth two in the bush. Also good luck in Seattle! I've got you on my fantasy team. Lol