All Forum Posts by: Atul Mohlajee

How do you calculate leverage on existing portfolio as I have 11 rental properties?  Is it cureent debt/total buying price of all properties or is it current debt/current total value of all properties?

Thanks.

The lender is not charging me any interest on escrow.  I would rather pay off $10000 loan on a credit card which is at 15%.

Higher cash flow is only psychological but actual savings are interest savings.  Thanks for your input.  

Please respond and share your wisdom/ thoughts especially guys/girls with large RE portfolios.

Thanks.

I have two commercial and residential properties.  Bank is asking to make up escrow shortage by paying about $11,600 or they will increase total monthly payment on both properties to make up for past and future escrow shortage that includes taxes and insurance.  What do most of you prefer, just let the payments increase and reduce cash flow or pay them interest free $11600 that I can otherwise use to pay off higher interest loans.  Please share your thoughts.

Thanks

Thank you gentlemen.  It is a 6 unit apartment building and a 5 unit strip mall.  I plan to pay at least one of these two properties in full for sure.  I have several other properties that are two flats, SFHs, condos etc. some of which have 30 year fixed and some of these are paid off. 

How far East are you?  I personally would not prefer this neighborhood unless you are really close to West loop maybe a block or two tops.  This is well priced and not too discounted to take risk of neighborhood growth.  My two cents.  I work in West loop since 1995, and invest in Oak Park, Forest Park since 1996.

I bought two commercial properties in 2017.  Both of them have 10 year loans that are fixed for first five years and adjustable rate for the last 5 years.  Both these loans are amortized over 25 years and I have decent cash flows here.  The lender told me that loans are due at the end of 10 years when I can either pay them off or refinance.  I am worried if I am unable to refinance do I lose properties?  My credit and cash flow situation is pretty good but I am thinking of worst case scenarios.  Has any of you lost sleep over tis issue that commercial loans are only 10 years and ot 15 or 30 years like residential.  Please share your experiences/thoughts.

A paid off property is being used as a collateral.

This year this will be second commercial property that was 0 down for me because in both these cases I used a paid off property each as a collateral.  Bank gave me 75% of the appraised value.  Remaining 25% was a residential property in each case.

Cap rate is 9%.  Rental income is $7100.  Price is $531000.  Commercial loan is 4.75% fixed for 5 years, and adjustable for next 5 years.  This area is certainly more secure than 5-6 years ago and is still poised for growth I think.

Just bought a 5 unit storefronts in Rogers Park, IL.  Property is cash flowing some although it was zero down payment with 100% financed as a commercial bank loan.It is good to be part of Bigger pockets for advice, just look for others view points and help you grow as an investor. I am optimistic about the growth of this neighborhood also although it is a cash flowing property and I am not counting on appreciation alone.