All Forum Posts by: Andrew Goelz

Hey All, I was looking at investing in a college town and had found a contractor producing modular homes within walking distance to the college. The utilities are a ballpark estimate from online data. Let me know what you think about the numbers. Thank you in advance! 

https://www.biggerpockets.com/...

Heya, I hope all is well! I have been looking for local meetups from Bigger Pockets in our area, but there does not seem to be much interest through BP. Do you plan to have one set up for November?

Hey Guys, thank you so much for the insight! This all makes much more sense now and I appreciated the wisdom. The question was just bouncing around in my head for a few days and you two nailed it. Thank you!

Hey all, I was looking around the forums and could not find information concerning this topic. Refi in a down market when you may or may not be over-leveraged. This is a more curiosity question than anything.

For instance, let's say you have an FHA loan on a $100K property with 3.5% down, that's $3500, and the market turns for the worse and your house is not worth $100K but you still have $3500 in it.

Does it make sense to get the house reappraised at the "market value" (ie. less than $100k) to increase your equity and potentially refi out of an FHA to a conventional loan?

Thank you all in advance!

Hey @Michael McBee, You can get a HELOC on investments, but the criteria/requirements are more strict (ie. Debt to income ratio, credit score, income, equity in property, lender requirements etc.)

@Jordan Blanton, It looks like if you would use the money made from your house sale to pay off your rental property you would then allow you and your family to make the entire rent from the rental, which based on your required payments for your student loans would cover your student loan payments for the remaining time each month. It's like creating a system to pay off your student loan automatically. 

If you pay off your loans with the profit made by your house sale, you may feel great about not having student debt, but the debt looks the same based on your interest rates and amounts. It would be a different story if the student debt was like 8%. For you, debt is debt, just with a different name. (ie Student/rental)

Also, you may want to watch out for taxes on your capital gains from your house sale. Factor those in, and perhaps speak with a CPA. 

I hope this helps!

You are also building equity with the rent payments from the tenant, which is AWESOME. So not all is lost! Perhaps depending on your financial position, you can get a HELOC/Refinance your rental property now to put a payment down on another property, BRRRR that next property and with the refinancing from it, you can pay off your HELCO.

https://www.biggerpockets.com/calculators/shared/1135262/dc58fd19-65dc-4f2f-a824-0749318b31f8

Hey @Jaysen Medhurst!

Thank you so much for taking the time to analyze this. I have been struggling with analysis for a few months now. I have looked at a bunch of homes trying to hone my skills and I felt good about this analysis and I was looking for some feedback, and I am very thankful for your feedback!

The idea:

Main House is a Duplex:

- Upper Unit: 4Bed/2Bath --> I would rent this out as winter rental for 7 months then Short Term Rental 5 months on a week by week basis as this is a hot area for vacation.

- Lower Unit: 2Bed/1 Bath --> I would live here

Cottage In Back: 3Bed/1 Bath --> Rent this out as a winter rental for 7 months then Short Term Rental 5 months on a week by week basis.

The "monthly income" is an average of the Weekly short term rental income and the winter rental income. I was conservative with the avg cost of rental for each time of year and VERY conservative with the vacancy. The avg vacancy for that area I could find is around 5%.

Main House Upper Unit: Winter Rental is ~2000$/Mo, Weekly Rental is ~3500$/Wk

Cottage Unit: Winter Rental is 1500$/Mo, Weekly Rental is ~2500$/Wk

All in all: [(2000 x 7 months) + (3500 x 20wks) + (1500 x 7 months) + (2500 x 20wks)] @ 100% Occupancy led me to $115,600/yr = 12,041.66/month avg. Including expenses/vacancy brought this down to $6,483.94 monthly income.

But with the adjustments you noted, this brings it down a bit further. Finding quotes for flood insurance is something I need to take a further look at. I could find a policy that does not cover the property being a rental with two units at about $1200 for the year, but need to call because the property involves a rental obviously.

Additionally, why do you recommend the 10% property management despite me living on-site?

The home insurance was calculated on Zillow, but I am sure I should take that with a grain of salt huh?

So I ran the numbers with what you had suggested and this is now what it looks like. This is what I changed:

Electricity Bill: 330

Closing Costs: 9284

Vacancy: 5%, CapEx & Repairs: 15%, Mgt: 10%

Taxes STRs at 11.6%

Here is the result:

Awesome stuff!

-Andrew

View report

*This link comes directly from our calculators, based on information input by the member who posted.