All Forum Posts by: Ayne C.

@David Tsedaka oh hi there, fellow Odessian.

@Ayne C.

Oh man, I missed the SIDRA part. Disregard the self management advise. I hope this works out.

@Larry Spradling

There are lessons here to be learned for sure, I won't harp on that.

At this point I would look at the CASHFLOW and try to get that to increase. The suggestion to self manage is good, the suggestion to offer a lease option is good. Look at expenses and rent and see what you can optimize. See if you can turn this ship around.

Yup for sure cash flow would be better in a 30yr loan.  Another thought of you really want to keep it, is a loan recast.  You pay 10k toward the principal and they reamortize your loan without changing the rate or payoff timeline.  Not sure it will lower the payment enough to make sense though.

@Justin Miles

I'm in a similar boat with a property in Carrollwood, only I haven't lived there since 2015. I've had a great tenant all this time but the HOA, management fee and property taxes and lawn guy are taking too much of my profits. I'm going to sell when the lease is up. Appreciation has been great though.

I like the more conservative approach of saving for a few months. But I'm pretty old and conservative myself, and I want to make sure a market downturn doesn't leave me cashless and overleveraged.

@Ashley Cann. If you owe 200 and it's worth 300 you won't get a lot in a HELOC, maybe 25k? I rather leave it alone and HELOC out of my primary residence for short term money *IF* you have equity there.

Other option to refinance the rental will give you better cashflow but I'm not crazy about restarting a 30year loan and pay all the interest again. Also, refinancing costs.

@Seth M. Jones I am not against leverage. The way I figured, I can pay myself, get HELOC, then borrow from myself (my HELOC), buy property cash in the wholesale market, fix, rent, put a regular mortgage on it and pay my HELOC back. Then repeat on the next deal. So I'm still leaving behind a leveraged property. In the meantime I no longer have that 2300 monthly mortgage payment (I know I know... too much house for my area, tsk tsk tsk).

I'm considering paying off our primary residence mortgage in full and then getting a first position HELOC to use for short term money (for new BRRRRs). I'm my head it seems like a killer strategy. What am I missing?

We already have 5 doors (30% LTV across the portfolio) and healthy cash reserves. Partner has a good w2, and we are already lean-FIRE.

@William C. I think the whole point of having criteria and goals is that you know exactly what to offer. Emotions don't come into play.