All Forum Posts by: Chris Hill

Fair question.  If those are all paid off, and the Syndications perform as anticipated, after the 10-13 year mark, I would be way past my cash flow goals. In short, I would hit my goals without needing more doors.  

I did leave out a lot of information, sorry.

I have 14 townhomes, all with loans, and if I put 10k and snowball, they would all be paid off in about 13 years. I also have a good chunk in multiple Syndications . The goal is it within the next 10 to 13 years have the Syndications 1.75x twice over 10 years,and pay off all the townhomes and then be done.

Just trying to come up with the best snowball method. I was going to go after the highest interest rate first. Not sure if there’s a particular method to snowball which makes it go faster.

I did leave out a lot of information, sorry.

I have 14 townhomes, all with loans, and if I put 10k and snowball, they would all be paid off in about 13 years. I also have a good chunk in multiple Syndications . The goal is it within the next 10 to 13 years have the Syndications 1.75x twice over 10 years,and pay off all the townhomes and then be done.

Just trying to come up with the best snowball method. I was going to go after the highest interest rate first. Not sure if there’s a particular method to snowball which makes it go faster.

I have a goal to pay off a large loan in 10 years. Let’s say I have 10K available to put towards extra principal every month. Would I end up paying the loan off faster if I did one lump sum payment of 120K per year, or doing 10k every month? Seems like with amortization it makes some difference. Is there any difference or is it the same?  Does one get me there faster?

If I cash out refi all 14, my 1.6 debt currently owed goes to 3.5 owed (taking  1.9 out).  It’s a 17k mortgage.  With gross rents at 22, cash flow goes to 5k per month.  If I successfully invested 1.9 in multiple syndications at 10% it’s roughly 16k per month.  So monthly cash flow would be about 21k per month from syndications + rent.  That’s a good number but seems tight/risky to me so being so leveraged? I think that would be 14 years to pay back the 3.5 loan. 

Honestly at that point my brain is fried! Not sure what percent retuen that scenario would be.  

Would you consider that path? 

If I refi just the three already paid off, take out 750k, with new loan payment, cash would go up 3k a month to 15k.  The seems more tolerable.  Thoughts?  Minimal leverage or all out?

These are all LTR in Ogden UT. I like the idea, but I don't see enough interest in people coming to Ogden to turn it into an STR.

Totally agree on the stock market, it doesn’t make sense to take 9% over 25%. However I’ve totally soured on the stock market. Feels like gambling to me. I like the idea of a tangible asset, even though it could totally go south, it feels slightly safer to me.

I have roughly 200K in syndications with Ashcroft right now, and so far so good. I do like the idea of diversifying additional funds into other syndicators and property types. Thank you for all your suggestions!

@Mike Hourihan honestly 30k was a random number.  three years ago I thought 20 was the number.  As I thought about taxes, I was thinking with 30 I'd actually keep 20, but not sure.  We dont have any debt, our expenses are about 7, so that would be more than enough

@George Azita my goal is really long term steady cash flow.  i'd love to have 30 rolling in for 40 years,  withdrawing funds until theyre gone doesnt appeal as much to me.  not right or wrong, just personal preference 

@Jake Wiley  this is pretty interesting.  i have no experience in larger multi fam, but I didnt have experience with sfr either when i bought the first house.  I'm sure there are many articles on here about starting with a big project like that, so i just need to educate myself.  Can you expand on your comment "you could flip into a 100% passive strategy"?  Can you provide a bit more detail on that?  10m property, sell it for 11m, then what happens?

@Paul Moore  i love this.  this is what I was hoping for, is folks with your experience providing advice!  I agree with diversifying.  i like the idea of 5-10 syndications, keeping the rentals, and expanding all over the country, storage, residential turnkeys, etc.  

i think i will hang on to what i have, and just use my day job funds and rental funds to expand into syndications.  for some reason the cash out refi numbers just dont seem effective (please correct me if i'm wrong), but the thought of taking cash out of the three that are paid off is intriguing.  however if i took at 750k, and that produces 24k a year in cash flow, that seems terrible.  thats accounting for the new loan payment.  

@Jay Hinrichs Thanks for the nice words, however it was just pure luck. Timing and place. And huge rise in rents

I’d sure love any other comments regarding cash out, refi, or other ways to maximize the equity. But maybe just staying the course could also be the best option.

@Jay Hinrichstotally agree, and I’d rather manage 14 doors than 100 if they bring in the same.  So your thought is simply stay the course, no cash out refi etc?

@Jay Hinrichs great point.  I think of that at least once a year. Right now it would be roughly 8-10 years and they would all be paid off. If rents were to stay the same, gross would 23K/month.  At that point, if I took another three years and invested that income, I could probably get it to 30 pretty quickly.  At some point, someone told me to keep buying additional properties and snowball later. Not sure which is best. But I do not use or need any of the current cash flow at this point and don’t plan on doing that for at least 10 more years.  But if I could get to 30 in the next five years, then it would be a great day to quit my job!

Jay what would you do in my shoes?