All Forum Posts by: Jeremy Mahan

I appreciate all the responses.  It sounds like the consensus is that I am better off keeping the rental.  That is what I was hoping for.

@Michael.  Thanks for the advise.  If it were up to me I would not buy the new house, but I am married and you know the saying, "Happy wife, happy life!"  Tomball is just outside Houston.  Near The Woodlands and growing very fast!

@Ian.  How do you go about finding a home off-market?  Will I typically pay a higher interest rate with owner financing?

@Victor. Good point! I hadn't thought of it that way when it comes to DTI. Glad you mentioned it.

@Ali.  Yes, my rental is cash-flowing.  I only net $200/month but it covers the mortgage and has been a good rental overall.

@Omar.  I have certainly been living below my means.  I sold my 3200 sq ft home last yr and am now renting a 1200 sq ft townhouse in an effort to save money.  I'm trying to save to get the next investment property, but I have a family and they are wanting back into a house.  Just trying to juggle the different options and make the right decision.

I currently have a rental property that I purchased several years ago in the town where I went to college. I am currently renting and saving money to buy my own house in about a year. I enjoy having rental property and plan to pursue more deals in the future, but for now I just need to get into my own home. Should I sell my rental to put extra money down on my own house? I net about $200/month on the rental. I could sell it and net about $20,000. I'm thinking selling the rental would help my DTI ratio when buying my own house and give me more money down, however, I have really enjoyed having the investment property. Could I just borrow against the equity in the new house I buy due to the fact that I put more money down on it? I'm not sure what the best strategy is. Does anyone have any advice? Thanks.

Dave,

Thanks for the info.  I'll have to run some numbers and see if it is worth pursuing.  I am very new to this so I wasn't even aware of 1031's.  Looks like I need to do some more research before I make any decisions.  

Nicholas,

Thanks for the advice. I'm not familiar with 1031 exchanges, but if it will save on taxes then I'll learn what I can and go that route. Thanks again!

I currently have one rental that is 500 miles away in the town where I went to college.  I charge $890 for rent and pay $670 on the mortgage.  I live near Houston now and would like to start investing in this area.  I have had the rental for over 6 years and haven't had any problems with it.  After doing some research, I believe I can sell my rental for about $95,000 and I owe $70,000.  Should I sell my rental and use the money to invest in the Houston area, where I live, or just hang on to the rental and save my money for another one?  Any feedback would be greatly appreciated.

@Mark Fedorov, When you talk about receiving 130% of the mortgage, do you mean just the payment for the loan, or the total payment, including taxes and insurance, each month?  I am currently receiving just a bit more than what I pay each month, which includes the loan, insurance and tax.  If I just need 130% of the loan payment itself, then I am probably in good shape.  Otherwise, I may be need to either save up and pay it down in order to refinance or just save up and put money down on a new rental.

@Mark Fedorov, The rent is currently only covering the mortgage.  I could probably get more out of it, but I have a great tenant that has been there for a few years with no issues.  I am reluctant to raise rent to a point where she would look elsewhere.  I will keep the 1.3 benchmark in mind and try and get it to that point down the road.  I appreciate the advice.

@Luke H. and @JD Martin, You guys have given me some things to think about.  I am trying to get on the right track with real estate investing and your advice is greatly appreciated!

@Greg H., that is exactly what I was wondering about, whether the appraisal has anything to do with the actual value of the property.  I was concerned because I don't want to list it at a price that is much higher than the value, making it hard for a buyer to get financing.  As far as receiving the refund, I believe the company offering to do the leg work on the protest will pay me for the refund I would receive and then they will keep the actual refund.  I may be mistaken, but it sounds like they will pay me soon after going through the protest process.  Obviously I need to get more information in that regard.  I really appreciate the info. 

@Jim Kennedy, Thanks for the information and advice.  I will definitely use the lower taxes as a selling point.  Funny that you mention Magnolia (Texas, that is), because that is where I plan to focus on buying investment properties.  Seems to be a smaller town with lots of growth potential.  I am fairly new to the Houston area, so if you have any suggestions or advice about starting out in this area, I would welcome it.  Thanks again!

I wanted to protest my property taxes for the last two years because I believe that it was over assessed and I am due a refund, however, I plan to put my house for sale in the next couple of months and I don't want a lower assessment to affect the sale.  Does anyone know how the county's property tax assessment of your property affects the value of your home when you go to sell?  I know that home buyers typically get an appraisal when they buy, so do they not consider the county's assessment of the house for tax purposes?  I'm not sure if I should protest the taxes or not and any advice would be greatly appreciated.  Thanks.

Thank you for the advice.  I have a few other questions.  I have heard that borrowing money for an investment property is more difficult than for a primary residence and that you typically need 25% down.  What should I expect when trying to refinance a home that used to be my primary but is now an investment property?  Also, should I refinance more than the balance so I can use the extra cash for a down payment for another rental, or should I refinance at the current balance and pay it off quicker?