All Forum Posts by: Amran Musaid

Quote from @Jerome Thompson:

I would like to know how the process goes when someone pulls equity from a property and use the money for down payment for another property

 Basically if you have equity in your property and have good credit then you can easily access the equity in your property via a cash out refinance. That money is yours to do whatever you want including use that money to add to your portfolio 

Quote from @Jonathan Taylor Smith:

I'm curious... Living in CA but the property being in MI - what would have been your capital gains tax result on the original flip attempt had it appraised for $200K as you expected? Would you have really gotten to keep those funds or just owe a large portion of the "win" in taxes? And then how would that compare to your tax-free cash-out refi and rental income profit that is likely offset by depreciation and other tax benefits from still owning the property? Personally, when I got into REI, my wife and I owed $14K in taxes each year beyond what was already withheld. We bought 2 rentals and got a $6K refund that next year... So right there we profited $20K on taxes alone. Had I flipped those properties, I would have just been increasing my taxable income. And because I kept them, we got the benefit of their value more than doubling in the following years and continued tax benefits, instead of these going to whomever I would have sold them to in a flip.

And if you got 100 rental applications in 3 days, you're rent is far too low. So, it would seem you have a rental property that beats the 1% rule - which most everyone here on BP would LOVE to have in their portfolio. You really want to sell your golden goose? And why not split the lot and build another house on it yourself? It should also have great numbers when the land was essentially FREE.

I know that the numbers are good but not as good as my other properties. My return on equity is low compared with where it could be potentially if I use the equity in the property. I thought about building another property on the additional lot like you suggested but the cost to build a property that is similar in size to other properties in the neighborhood would cost more then what it would cost to just buy another property. That being said I’ve never built a house and these numbers are based on quotes that I received from builders. Maybe someone here can offer advice on building. 

Hey everyone, 

About 18 months ago I attempted to do my first flip but ended up having to keep it as a rental. I was still new and didn’t know anything about bigger pockets so I totally relied upon my real estate agent. I didn’t do my homework and really didn’t know how to do it. Here is what the deal looks like

Purchase 120k

Rehab 30k

Anticipated ARV at the time of purchase 200k

After completing the rehab which was a real pain since I live in California and the property is in Michigan it was appraised for 150k

I was frustrated and confused because other properties that were within 1 mile of my property were selling at a similar price point even though those properties are by far inferior. After doing a little digging I found out that even the comps that were used for the appraisal were by far inferior because the subject property is a 4 bed 3 bath 1600 sqft on a double lot and the comps that were used were 3 bed 1 bath 1000- 1200 sqft homes with aluminum or vinyl siding. That’s when I discovered that I had pretty much bought the best property within the 1 mile radius that the appraiser used to determine the value. I reluctantly did a cash out refinance at the 150k appraisal so I can pay off my private lender and make him whole and listed it for rent. I listed it for $1600 which at that time was higher then any other property for rent and with 3 days I had over 100 applications. I just recently increased the rent to $1750 and my tenants pay on time every time like clock work. I recently asked that same real estate agent what he thought I would be able to sell the property and he told me 180k even though prices gave gone up since I bought the property. Even though I have a solid tenant I’m thinking about selling it and either buying a couple of those inferior properties or a duplex and increasing my return on equity and get more cash flow. Or could I split the lot up and sell the additional lot and unlock value that way? I’m not sure what to do here and really need your feedback .

Quote from @Scott Wolf:

Quote from @Amran Musaid:

Recently I came across a deal that will double the the size of my portfolio and will cash flow very nicely for me. I have equity in my current portfolio but my current portfolio loan has a prepayment penalty and don’t want to refinance because I’ll have to pay this penalty. Is there anyway to finance this acquisition in which the lender will finance 100% of this acquisition and use my current portfolio as collateral for the deal? It’s a portfolio of 7 Brrrr’s and would like to 100% financing with my current portfolio as collateral then refinance and pay lender after I refinance the deal. I really would hate to walk away from a deal this good but don’t know what to do. Can anyone advise me?

 Where are all of the properties located, and what kind of equity is in your initial portfolio?

All the properties are in Michigan and I have about 500k in equity in the initial portfolio 

Recently I came across a deal that will double the the size of my portfolio and will cash flow very nicely for me. I have equity in my current portfolio but my current portfolio loan has a prepayment penalty and don’t want to refinance because I’ll have to pay this penalty. Is there anyway to finance this acquisition in which the lender will finance 100% of this acquisition and use my current portfolio as collateral for the deal? It’s a portfolio of 7 Brrrr’s and would like to 100% financing with my current portfolio as collateral then refinance and pay lender after I refinance the deal. I really would hate to walk away from a deal this good but don’t know what to do. Can anyone advise me?

Is it still possible to find cash flowing properties in decent neighborhoods within 2 hours of the Bay Area ? 

I'm considering leaving the Bay Area but rather than selling my home I'm considering turning it into a STR that way if I ever regret leaving I can always move back. I've never done an STR before and really don't know where to start or what to do and was hoping to get some advice and recommendations on cleaners and handyman that can help with turn over and regular maintenance

which local bank are you using because all my investments are in Michigan right now and might be able to use the same institution. 

@Benjamin Aaker

I have mortgages on all of them at three different banks. Some have a lot of equity and some very little so I was looking for a blanket line of credit that will take into consideration all of the properties combined. 

Is it possible to get one HELOC for my entire portfolio?