All Forum Posts by: Colton Hahn

Hey Chase, congrats on paying off those three properties! I would start perusing nearby areas if you area is in short supply, one thing I feel strongly about is not betraying your own acquisition criteria. Stick with what you know is a good deal and try not to let money burn a hole in your pocket!

Hey Daniel, welcome! We invest heavily in that region and all the data shows Indiana, Louisville, and the midwest in general to be a fruitful place to continue to invest. If you or anyone else has questions let me know!

Quote from @Mike D'Arrigo:

@Jared Bauer before deciding if investing out of state is best, you need to start with clearly defining your goals and objectives. Once you've done that, you're in a better position to evaluate which markets will best allow you to achieve your objectives. Property taxes are generally your largest single operating expense so I would avoid states with high property taxes and insurance rates. Here are the top things that I look at when evaluating a market.

• Population growth
  Job growth
  Modern/diverse economy and industries
  Low to moderate property taxes and insurance
  Favorable landlord/tenant laws

The markets that I personally like are Indianapolis, Kansas City and the Iowa side of the Quad Cities, primarily Davenport, IA. You have a substantial amount of capital to work with. You might want to consider medium sized multi family properties where you maximize your cash flow and minimize the number of properties you are dealing with.

I am with Mike on this, those regions are great and look to continue their current trajectory. 

What you would be doing is taking out a mortgage on that home, you would have an appraiser value your home and that would give you what it is worth. Based on that number you would be able to borrow against it up to a certain percentage based on the kind of loan you are applying for.

Lets say the house appraises for 300k, and you want to take out 50% equity on it you would be taking a loan for 150k (before closing costs, taxes etc). 

Your thinking is correct, when you go to finance the investment properties that heloc will then show up on your DTI ratio and will be factored in. Thats something to keep in mind for sure!

Hey Eric, if you are prior servicemember (given you are contacting Navy Fed) I would suggest contacting AAFMAA as well to check their rates. They are a not for profit that exclusively works with military members. 

The biggest difference between cashing out or HELOC is that cashing out is a lump sum while the HELOC is a line of credit that can be used like a credit card. HELOCs also generally have higher interest rates than simply cash out refinancing. 

With the way rates are these days I would consider refinancing regardless to lower the interest rate if at all possible.

If you plan on turning that property into an investment property following your refinance you will likely need to declare it as an investment property and there is a strong possibility that does have an impact on interest rates. 

Either way, I love where your head is at, using your tools at hand to increase your wealth. Good luck!

Hey Anthony, that is a difficult situation to be in. I think you are thinking correctly about leveraging your current home to increase your wealth, and maybe the fact it is your first home is making it more difficult. I totally understand that, buying a home is an emotional thing. I would think about where Austin is going from here, could you get more in September when you can refinance again? Probably, with the amount of jobs (Tesla expanding more in that region etc) going to that area I can absolutely see it appreciating further. But that also means properties are going to be more expensive as well.

One thing I would consider is your knowledge of the area, is your current property in the best region for appreciation or are there some areas that are gaining value at a higher rate that you could get into by selling now?

I would seek out a professional who can run the numbers for you and see if it makes sense to go ahead and sell now, then acquire two more properties with that capital or would it be best to wait? 

Good luck!

Hey Jon,

I love that area for investing personally, I think the way the panhandle is situated it is uniquely shielded from most hurricanes that come through the gulf. I would consider looking closer to Panama City, which is a little further east. 30A (the strip between the two) I have seen some great properties listed there for reasonable prices. Good luck!

Huge indicator that Austin TX is here to stay if you ask me. Good stuff Bryan!

Hey Nguyen,

I was just talking to an investor today that had the same question as you: "Where do I find deals?" the best advice I can give is try to meet with and network with as many people in your area as possible. There are deals to be found, they are just off-market and not advertised as much. Look up investor groups in your area and do not be afraid to introduce yourself to every single member. Find out where they meet, what other groups the members are in and do the same with that group. Expanding your group is the first step and maybe you can find someone selling a property that meets what you are trying to do. 

Best of luck!