All Forum Posts by: Jack B.

My conventional and FHA loans do not have a demand feature. But at 10 loans the conventional route will end....one thing I never want to do is have loans with a demand clause in them.

Also, do portfolio lenders charge higher interest rates?

Unreal. Is it worth applying for?

 This. I remember the first time I rented out a house and I drove by a couple months later while running an errand in the area and the brand new blinds were shredded by a dog they did not have when they moved in. My gut churned for a few days. Now I've seen MUCH MUCH worse and it barely even phases me anymore. Even had to spend nearly 10K in repairs once after a tenant moved out due to the house sitting empty and the galvanized pipes freezing and breaking as well as the damage the tenant caused. Still worth it. Sold the house for 3 times what I paid for it (I had paid cash in my mid twenties, now I always leverage) and bought two more with that money. Those two alone (not counting my others) have gone up over 300K in value in 3 years. 

Heck one house I lived in I sold after 2 years for a cool 248K profit after all expenses from buying and selling it. I knew it was a deal I could flip without doing anything to it and I was right. I was also right to dump it when I did because it has barely moved since I sold it and I sold it exactly because I figured it would stagnate due to tax law changes. Point being, whether you are payin $100 for blinds, 10K for repairs or 50K for transaction costs, when you make millions off this stuff, even the 50K in fees/transaction costs becomes part of the game...a small price to pay to make money hand over fist, with mostly other peoples money other than your down payment.

I'm waiting for a dip also to 1031 some of my properties again. The only question right now is whether I should cash out REFI any of them. I'd get a lower rate and sit on even more cash waiting for buying opportunities that are not time and rule contingent like 1031 exchanges are. Only downside is tax benefits go down (can't deduct part of the interest) and cash flow goes down (given that cash flow goes down the partial interest deduction should not be a big deal so I might end up showing no income on the returns where as right now they are showing a profit). Thoughts?

The idea behind the cash out refinance is not to use current cash on hand, to use that to diversify into other assets, only use existing dead equity in my houses that are sitting at 50% equity positions, some much much more. 

I bought a new primary residence on a lake, with a MIL apartment because the deal was too good to pass up; low rates, lake house with private dock and boats, MIL apartment to subsidize my expenses if desired, close to everything. The price was right too. 

I'm not buying anything else right now unless it's a GREAT deal. Prices are still rising here, but with more states shutting back down and a wave of evictions and foreclosures on the horizon (things are moving slow right now due to moratoriums) I think prices MAY dip. While interest rates are low now, they will remain low or go back down when/if that dip happens to stimulate the buying again. So right now I'm just watching unless it's a killer deal. 

I'm waiting for a dip also to 1031 some of my properties again. The only question right now is whether I should cash out REFI any of them. I'd get a lower rate and sit on even more cash waiting for buying opportunities that are not time contingent like 1031 exchanges are. Only downside is tax benefits go down and cash flow goes down. Thoughts?

One thing that I think is an important lesson here is not to rent to blue collar workers. My tenants at MOST of my rentals are usually white collar: Dr's, ivy league educated programmers, etc. 

I've had a slew of unemployed bartenders apply lately at one rental I've generally also found the more blue collar the job the lower the credit and the more problems with the tenants. 

There is an exception in WA now if you declare you want to move into the house or sell the house. I've periodically moved into and lived in some of my rentals so it's something I'd be willing to do again...

 LOL! You just reminded me of a prostitute who tried to rent a house from me, offered to pay 6 months cash up front. I was suspicious and asked what line of work she was in. Entertainment...I asked her if she was a prostitute, etc. She admitted she was, but she never brings clients to her home. This candidate is still out there in the wind I'm sure, if anyone wants to take her in, please PM me and I'll look for her info hahaha.

I'm FI now and have been for years. I'm 38. At 300K W2 income I have no intentions to quit right now. I have 5 rentals. Sold a couple houses. Could pay all but one off right now (just bought a new one). But cash flow is enough even leveraged for me to retire. I have just under a mil liquid and over a mil in equity. Nice to know I could quit and go to Thailand or buy a camper and travel the country just adventuring anytime. But not everyone can make a 300K a year W2 income, it took a lot of education and certifications as well as skills to build that so I'm going to grind it out until I can't anymore.

 If you liked that, you will love my thread about the guy who was growing "medical" pot (no license mentioned) and wanted to rent my house at any price...he needed to tap into the breaker and make some adjustments. Was willing to pay whatever price. Suffice it to say, that quality tenant is still out there in the wild I'm sure. Let me know if you want me to refer him to you, lol. 

I ended up renting to 3 programmers, each with a six figure income and one of whom is Ivy League educated (Masters at that).