All Forum Posts by: Ismael Ayala Jr.

 Hillsborough County, Florida

I believe the answer to this question is probably obvious. But I would love multiple feedback, constructive criticism, and differing opinions. I'm all about having strong opinionated people and surrounding yourself with those who are smarter than yourself and who are not afraid to tell you the truth.

I would like to obtain and move into a 3rd property(townhome) in a nice neighborhood. I'm in the position to apply(depending on lender DTI requirement) for conventional financing through the builder at <6% interest rate in this current market. I own 2 homes. I live in one and rent the other for $400 cash flow.

My dilemma is this: I would ideally like to wait until I have emergency cash reserves to cover 6 months of mortgage payments for all 3 properties. Which is approximately $41,000. I have no credit debt and $12,000 of student loan debt I'm looking to pay off within the year. And approximately $130,000 of untouched equity.

I'm afraid if a recession happens, I may get stuck with 2 unemployed renters and have 2 extra mortgage payments that I can't afford. But I'm also of afraid of missing out on a good opportunity to get a townhome in a expensive popular area at the price point and interest rate I find to be favorable.

Particulars:
1) 1st SFH rental property cash flows $400 and we have a 2 year lease agreement that ends in 2025.
2) 2nd SFH I currently live in, I would rent out and probably experience a negative cash flow of --$100 cash flow for first year, break even 2nd year, and build little cash flow moving forward. But, could I minimize risk of renter defaulting on payments for the 2nd property by turning this property into a section 8 housing unit with guaranteed income from the gov't? This is DR Horton SFH, and is a newly built single story 4 bed, 2 bath that is surrounded by expensive MI homes.
3) Move into the townhome.
4) Use my $130,000 HELOC as an emergency if rent defaults do happen and save for a year until I reach my emergency fund goal of $41,000?
5) Or should I save, wait, prepare for the next opportunity when that $41,000 is saved up?

I think Dave Ramsey(who I respect but don't worship, lol) would be highly disappointed in me for even thinking about doing this, SMH.

I believe the answer to this question is probably obvious. But I would love multiple feedback, constructive criticism, and differing opinions. I'm all about having strong opinionated people and surrounding yourself with those who are smarter than yourself and who are not afraid to tell you the truth.

I would like to obtain and move into a 3rd property(townhome) in a nice neighborhood. I'm in the position to apply(depending on lender DTI requirement) for conventional financing through the builder at <6% interest rate in this current market. I own 2 homes. I live in one and rent the other for $400 cash flow.

My dilemma is this: I would ideally like to wait until I have emergency cash reserves to cover 6 months of mortgage payments for all 3 properties. Which is approximately $41,000. I have no credit debt and $12,000 of student loan debt I'm looking to pay off within the year. And approximately $130,000 of untouched equity.

I'm afraid if a recession happens, I may get stuck with 2 unemployed renters and have 2 extra mortgage payments that I can't afford. But I'm also of afraid of missing out on a good opportunity to get a townhome in a expensive popular area at the price point and interest rate I find to be favorable.

Particulars:
1) 1st SFH rental property cash flows $400 and we have a 2 year lease agreement that ends in 2025.
2) 2nd SFH I currently live in, I would rent out and probably experience a negative cash flow of --$100 cash flow for first year, break even 2nd year, and build little cash flow moving forward. But, could I minimize risk of renter defaulting on payments for the 2nd property by turning this property into a section 8 housing unit with guaranteed income from the gov't? This is DR Horton SFH, and is a newly built single story 4 bed, 2 bath that is surrounded by expensive MI homes.
3) Move into the townhome.
4) Use my $130,000 HELOC as an emergency if rent defaults do happen and save for a year until I reach my emergency fund goal of $41,000?
5) Or should I save, wait, prepare for the next opportunity when that $41,000 is saved up?

I think Dave Ramsey(who I respect but don't worship, lol) would be highly disappointed in me for even thinking about doing this, SMH.

I believe the answer to this question is probably obvious. But I would love multiple feedback, constructive criticism, and differing opinions. I'm all about having strong opinionated people and surrounding yourself with those who are smarter than yourself and who are not afraid to tell you the truth.

I would like to obtain and move into a 3rd property(townhome) in a nice neighborhood. I'm in the position to apply(depending on lender DTI requirement) for conventional financing through the builder at <6% interest rate in this current market. I own 2 homes. I live in one and rent the other for $400 cash flow.

My dilemma is this: I would ideally like to wait until I have emergency cash reserves to cover 6 months of mortgage payments for all 3 properties. Which is approximately $41,000. I have no credit debt and $12,000 of student loan debt I'm looking to pay off within the year. And approximately $130,000 of untouched equity. 

I'm afraid if a recession happens, I may get stuck with 2 unemployed renters and have 2 extra mortgage payments that I can't afford. But I'm also of afraid of missing out on a good opportunity to get a townhome in a expensive popular area at the price point and interest rate I find to be favorable. 

Particulars:
1) 1st SFH rental property cash flows $400 and we have a 2 year lease agreement that ends in 2025.
2) 2nd SFH I currently live in, I would rent out and probably experience a negative cash flow of --$100 cash flow for first year, break even 2nd year, and build little cash flow moving forward. But, could I minimize risk of renter defaulting on payments for the 2nd property by turning this property into a section 8 housing unit with guaranteed income from the gov't? This is DR Horton SFH, and is a newly built single story 4 bed, 2 bath that is surrounded by expensive MI homes. 
3) Move into the townhome. 
4) Use my $130,000 HELOC as an emergency if rent defaults do happen and save for a year until I reach my emergency fund goal of $41,000?
5) Or should I save, wait, prepare for the next opportunity when that $41,000 is saved up? 

I think Dave Ramsey(who I respect but don't worship, lol) would be highly disappointed in me for even thinking about doing this, SMH.

I currently have a rental property that has >$100,000, maybe $130,000 of equity. Would a bank(say like BankofAmer) allow me to assume the low interest rate of another property and blend the interest rate with my current rental property? Based on my equity, creditworthiness, and history with them? I already do business with BankofAmer. But if not BankofAmer, would another mortgage lender take on the 2 mortgages and blend the interest rates together based on my credit and possibly even cash flow? Thx.

I really appreciate the advice, it is very sound and timely. I'm trying to get creative while also minimizing risk, and my eyes are wide eyed to the new information and potential opportunity. But you can say I'm trying to balance the YouTube info/advice from these real estate gurus with Dave Ramsey's advice. I just recently started using this quote, "I'm on Dave Ramsey's modified plan". My LTV is not 0%, like Dave Ramsey would suggest but at 50% on the rental property. But I'm also producing good cash flow, which I plan to first save and build a good 6-8 month emergency mortgage fund for both my rental property and my primary residence. I see you're local, that's awesome. We moved from St. Pete to be able to buy our first home across the bay. Look forward to connecting in the near future!

This maybe a silly question but I feel you got to put yourself out there and not be afraid to ask questions and admit your limitations. I'm new to real estate(just started renting out my rental property last fall). I understand real estate to be capital intensive. However, I'm looking at creative ways to produce cash flow with little to no cash down. The question is:

I have >$100,000 of equity in my (1st SFH) rental property. I currently live in my primary residence (2nd SFH). Will a DSCR lender give me a home equity loan from my (1st SFH) rental property, so that I can cover the down payment + closing costs to assume the 2.75% interest rate on a (3rd SFH) property I would move into immediately? As I would have to move in at least for a year to assume that rate. I would then just rent out my current (2nd SFH). The goal would be to capture that interest rate and keep it for the next 25 years so that I can cash flow well, if I move again and rent it out. And then payoff the home equity loan about less than $60,000 within 2-3 years.

Thx.

 Hello Brayden, 

This may be a dumb question so forgive me for asking; I feel a little embarrassed to be honest. But whatever, you got to put yourself out there and not be afraid to ask questions and admit your limitations. I'm new to real estate(just started renting out my rental property last fall). I understand real estate to be capital intensive. However, I'm looking at creative ways to produce cash flow with little to no cash down. The question is:

I have >$100,000 of equity in my (1st SFH) rental property. I currently live in my primary residence (2nd SFH). Will a DSCR lender give me a home equity loan from my (1st SFH) rental property, so that I can cover the down payment + closing costs to assume the 2.75% interest rate on a (3rd SFH) property I would move into immediately? As I would have to move in at least for a year to assume that rate. I would then just rent out my current (2nd SFH). The goal would be to capture that interest rate and keep it for the next 25 years so that I can cash flow well, if I move again and rent it out.

Hello Noah, 

thank you for your vote of confidence! For my 2nd home that my wife and I currently live in, we were able to obtain a 5.5% rate through the builder DR Horton for a new home. So instead of paying the bank for a home equity line of credit on my first home and paying them interest, I was able to use a personal loan to myself via my employer 403b and pay myself back with interest. 

The step where I feel I messed up was, I would have taken that personal 403b loan to myself and not bought a new home. Instead, I would have assumed a mortgage for a fairly new home(5 years or less) at a lower interest rate at 2.75% to 4% and used my loan as the down payment to cover the equity that seller was trying to recoup. 

Last July, August I was just starting to learn about real estate and completely missed the concept of assuming mortgages. I had no idea that was even a thing. Now, I feel I would probably have to wait longer for rent prices to go up for me to get positive cash flow from renting out my current home(2nd home). 

This is where I feel like I messed up as I can't compete with cash buyers, I don't have that kind of capital. Banks want at least 3.5% FHA or 5% conventional which sadly to say I just don't have. I have a good income producing job, however, I have a 6 member household with teens, preteens, and children who are eating up my house like Pacman, lol.

So, I have been looking at creative financing, but still don't have a clue. So needless to say, Im trying to watch a lot of videos and webinars in my free time and put out feelers to see how much a mentor would cost and if it would be worth it. I have $100,000 of equity in our first home, but I am very hesitant to use it due to my novice ability and naiveness in real estate. Especially, with the 10%, 11% rates banks want to charge to lend it.

Hello everyone! I'm a novice SFH investor. I guess you would call me an "accidental landlord" as I was able to take advantage of our interest rate on our first home. My wife and I bought our 2nd home just recently, and rent out our 1st home. I got a taste of real estate and have been learning a little more through YouTube videos, webinars, etc. But now I think I'm ready to take that next step and put things into action. By watching these videos I've recently learned I already made my first mistake by buying the wrong property for our 2nd home, lol. As there were better deals out there. But I guess hindsight is not always 20/20, and I guess that is part of the real-estate territory. But I also learned-reluctantly- I need a mentor, and that's not always cheap. But here we are, when there is a will, there's a way. Thank y'all! I look forward to hearing your stories!