All Forum Posts by: Dustin S.

Hi all I have a property the I purchased 6ish years ago with a conventioal 20% down loan. Since then teh property has appreciated considerable. I refied a couple of years ago an pulled out my initial capital but now i have over 50% equity in the property and since the last refi I have aquired several more properties with similar financing. with that many conventioanl loans no bank even wants to talk to me about cash out refi's are there any other options for cheap money i could use for more investnents?

I would use multiple websites. I like realtor.com and just search for solds in the area. Zillow and Redfin work to. Compare the solds to the subject property. Make sure you are staying in the same neighborhood, a 1/4 of a mile if you go across a major seperation could change values dramaticly but generaly i only use comps up to a mile and in a fast moving market I will try to use comps less than 3 months old if things a more stable I will go out to 6 month a year if needed.

@Jerry Padilla Currently all of my properties are cashflowing my thoughs are on should i be concerned on return on equity in the case of SFR1,2 and the 4plex? Also taking equity out of my primary residence is a chep way to get money but if I am using for a down payment I am exposing my self looking at 5% returns on what I put down not to mention that I will be paying for the downpayment I make in the increase in payment on my primary. Somthing I have thought about as well is just paying off one of my SFR rentals with the cash out of my primary.

Hi all

I am looking for advice and ideas on how to proced forward. I am a buy an hold/ buy fix and hold investor. I just 1031 exchanged out of a property that was just breaking even into to duplex tennants in place and cashflowing but getting the new loan was a nightmare.I need ideas and advice on how and which direction I should go for my next deal. So here how my situation looks.

money in the bank $30k

Primary owe $300k worth $400k-$420k finaced with a VA loan no funding fee required

SFR Rental 1 Owe $85k worth $150k to $170k Cash flows $250/m rents are $`150 below market but need $10k in work to justify rent increase/sales price

SFR Rental 2 owe $75k worth $110k-$115 Cash flows $300/month

Quad plex own out right worth $90k high vacancy rate including Vaccancy cashflows $800-$900/m would be on market 6 month if I wanted to sell

New Duplex Purchased/Worth $210k owe $156 should cashflow $200/m with 10%vaccancy

No lender wants to even talk to me about cash out on my investment properties but I could pull equity out of my primary. I should be able to put $85k -$90k in mypocket i figure i need to make atleast $300/month (the increas in payment) on that money to justify pulling it out I don't think that would be too hard. I could also refi with a investment loan and use my VA loan to purchase a new property in my area. Also i have thought about selling SFR Rental 1 doing a 1031 exchange pobably have $65k for the next property. I live in ventura county ca i can't find SFRs that cashflow i think the market might be primed for a small pull back in prices 10% maybe SFR1 and the duplex are in the Inland Empire of CA again no or very little cashflow on SFRs 5%ish on multis and think it may have a little appreciation left before it levels off and SFR 2 is out of state in TN where tthings are appreciation slowly but stedily might have a few years of very modest appreciation. I would rather not go out of state for investments but would love to hear what you alll think.

20 people isn't too bad if they get something on the calendar I will go if I can. Thanks

@Sam M. 

Have you actually been to one of the meetings? I was hoping to get out there this month but their meetup page says they have nothing scheduled.

I would also second the higher price higher quality of tenants but also more expensive properties tend to appreciate better. Not that you should bank on that but its always nice when a few years down the road you can 1031 into a even nicer property or refi for cash out and use the cash out for a down payment on a new investment.

@Rob Donovan 

I am in the same boat as Rick deals like that don't come around like that in my area. If your numbers are correct. It looks like a great deal but as someone mentioned earlier if you have a big ticket item(A/C, Roof, Water heater, etc) nearing the end of its life you need to account for that. Also you may adjust your Vacancy and Maint depending on the property and location if you have and "A" Property you should be ok with the 8% and 10% if you property is older a B or C property I would push both of those up. Also a bad area or and area that might caused more maint needs attention, you mentioned snow. Where I live I use 10% for maint and its 60 to 70 degrees all year round and rains maybe 5 days out of the year. Also I would verify all your numbers from multiple sources especially the rate you can rent it for. If it still makes sense go for it.

Good Luck

@Peter Mckernan 

I actually live in Ventura county. I have seen the group out of Corona and one in Riverside but neither of them seem very active. On their meetup pages neither shows a scheduled meetup and of the one that is on FB there hasn't been any activity on the page in 2 years. OC is almost a 3 hour drive for me but I was thinking about going to a group that I saw in Pasadena. I am always willing to go have coffee and chat. I drive to SD every few weeks maybe one of those time we can meet up.

Does anyone out there know of any good Real Estate Groups in the Inland Empire California or Riverside county. I have looked on BP, meetup.com and goggled it several groups but they don't seem like they are very active. I am investing in there area and would love to find a good place to network.