All Forum Posts by: Benjamin Richards

Hello, thank you. By your calculation and what I hope it's worth the cap rate is about 5.4%, not very exciting to most investors. There is a comp with the exact floorplan that sold for $142k in September though. It rents for $975/month and is never vacant long.

Does anyone know a bank that would lend 75% or 80% LTV on an investment property in Tucson when I've got 7 mortgages? My current rate is 5.75%, so it still may be worth the refi even with the closing fees.

I have seven mortgages, so at most they'll only cash out 75%. I might get $45k out of the one with more equity, I'll start calling a few banks.

I'll buy up in time to do a 1031 exchange. Where I live now the prices are higher. I might also stay in Tucson and get a multifamily deal.

I have been convinced for about a year that we're nearing the top of the market, and I've thought about selling some of my properties. On Saturday my manager told me that one of my tenants is leaving, and it is my least favorite property in a neighborhood I wouldn't buy now, so I told him to list it.

Once I got over the psychological barrier of selling a house, I'm wishing I could sell two others, but we just got tenants in those two in August and early September. The two of them cash flow about $600/month combined and I probably have less than $30k into both of them. However, I bought them at the bottom of the market in 2010-2011 and probably have close to $100k in equity I could take out.

I guess now that they're rented I have to wait a year to list them? What are the other options? So far, I've thought of:

Offering them money to leave? I don't like this because it doesn't seem professional.

Offering to sell to the tenants on a lease option? Highly unlikely they'd be interested now that they're already moved in.

I've never done a sellers financed deal, but it seems like you ask what they're going to do with the cash and offer them a better deal. It's pretty hard to make any interest these days, and there may also be major tax advantages to getting $1000 per month for ten years than $120k all at once.

I just listened to podcast 77 and the guest talked a lot about negotiating that kind of deal, you might want to check that one out.

Thanks everybody!

I've just moved back to the east coast from the southwest U. S. I started getting involved in real estate investing in 2009, and put together a portfolio of 5 SFRs in Tucson, AZ by the end of 2011. This was the rock bottom of the Tucson RE market. These were all conventionally financed, 3/2 or 4/2 distressed properties, except for my residence. I moved to Albuquerque after grad school and bought a nice 4/2 ranch which is I rented out to a couple who were colleagues from work when we moved back to the east coast. I'm hacking a condo here in Hudson, NH that will be a good rental when we move to a larger residence in a few years. I haven't done much since I lived in Albuquerque the last five years, so I'm hoping to start networking and getting back into the business now that we're settled here and planning to stay. My main strategy is buy and hold SFRs, but I'd like to learn some more parts of the business, such as rehab and multi-family deals, and possibly some flips eventually.