All Forum Posts by: Allen Wu

@Dan Hunter

Thanks Dan. Prior to BP i was sold into refi-ing under a lower interest rate. Had I kept it the old rate, i would be positive and maybe netting a couple bucks after capex, accruals etc. good point though!

@Aspen Labrador

I know a solid real estate agent who is investment focused. pM me if you want his info.

@Charles Hefele

I have a team out there in San Antonio. PM me if you need intro to pick brain.

In short, have a single property there. Cash flowing. Probably best performing property in my portfolio. But, not sure if it’s still case due to rise in values.

@Deryck C.

I was once the guy who wanted to get rid of all mortgages even for investment properties. The final answer is that it depends. Here are my thoughts:

1) if you are done and do not want to buy more investment properties, go ahead and pay down, but make sure you have at least 12 months of reserves before you pay down.

2) if you still want to buy more properties, i would shore up 12 months reserves, then anything north of that, go ahead and buy more. In short, low interest rate and at rate where we’re going, i think it’s good to lock in a 30 year fixed. So once rates increase you’ll be a happy camper and it’s arbitraging inflation rate.

Of course, let’s hope we are not the path of Japan where it’s low / negative interest rates for decades.....

Hello BPers,

Due to recent rise in the market, I wanted to run the potential options to see what other “long buy and hold investors” are doing. What are your thoughts on potential strategies below? Appreciate your input!

Background/Note: I bought this 1 bedroom, 1 loft, 1 bathroom, and 2 parking spaces condo in the Pasadena, CA area. Purchase piece was 300k and now a recent unit sold for 500k. This property is on a 20 year loan, I’m paying 3.37% and it’s costing me $300/month. Bought back in 2014. Refi made it into negative cash flow, was paying 4.126%

Potential Strategies:

1) 1031: I was thinking about 1031 this to 2 single family in San Antonio area. A or B class areas that cash flow.

2) Just Keep It: I know this area inside and out. So, my thought is to just keep it, eat the $300 a month and ride the appreciation train since this area has done well for me.

I’m leaning towards #2 but it’s not cash flowing. It should in 3 years? I’m up on equity though.....

@Sharon Cheng

I would try to house hack if you can tolerate roommates. At your price range, you might be able to get a 3 bedroom condo south of the 210 where convenience exists. You can find SFH north of 210 but it's a bidding war right now for SFH.

We settled for a condo in Pasadena after striking out on the SFHs. If you’re leaning towards condos, I would see what the current market rate is for your desired condo to rent. If it covers all in cost with some accruals, and you’re planning to live there for next 5-10 years, then it might be a decent investment as it will cash flow due to inflation and assuming appreciation.

In short, I have several condos in Pasadena as rentals and have done well on the equity portion. Cash flow stinks here. But, the condos have appreciated by 50% now and bought back in 2014-2015.

Good luck!

@Blaise Doremus

I’d start small in your backyard. But, if you want out of state just make sure you have a vetted team. I have a strong team in TX and they make my life easy. Can always move there later. You should run your market research and make sure you know your #s.

@Justin G.

As an introvert, take a sales job. I took a sales job at 19. Failed miserably and stretched myself for 2 years as it’s not my natural strength. From there, it set me on a path of discipline, tenacity, and always have a chip on my shoulder.

I’m no longer in sales, am on W2, but use that same drive 15 years ago today. I out work my fellow W2 colleagues and out invest them while working full time.

Applied it in the investment world as well. Started to learns stocks/bonds, reits, annuities, retirement products, now real estate.

Basically, I learned to keep learning and push the boundaries across all my investments. Real estate is by far the most challenging and rewarding!

@Young Park

Hi Young,

Which parts of KC do you invest in? Are there still cash flow and appreciation opportunities for A or B areas?

@David Lutz

Hi David,

Which areas in GA do you invest in? Any solid Class A and B areas still exist with cash flow and appreciation?