All Forum Posts by: John G.

 @Jason Crow I used my HELOC to buy a flip then the money I made to buy more rental properties. Best thing I ever did! BUT, you have to know what you are buying before leveraging your HELOC. What I mean is you will always have un-seen things that come up but that's all part of knowing what your buying and figuring numbers heavy so you can see your way through it, make some cash, and replenish your HELOC.

Personally, I like to see 15% cash on cash and a higher Cap rate.  But my market is way different then yours I'm sure.  That's just what I look for anyways.  That's a lot of cash out of pocket for the returns your getting

Hi,

I have recently found myself in a possible situation where I could buy 5-6 50k single family homes on a single contract.  I'm unfamiliar with such a deal.  I'm assuming its just one contract with multiple properties on it.

I have been actively buy/rehab/hold multifamily properties.  Trying to create cash cows.  The single Family homes are a little different.  What type of cash flow does one expect to get from a smaller single family.  I am kind of changing my strategy because of this opportunity.

The deal I have going is they will prob cash flow 150-200 per house after expense and debt service.

For the down payment some houses need some work....so they will allow the down payment to be the work that I put into them.

This deal seems alright on paper....anyone have any insight on this.

thanks

Yes, I did make the purchase.  It was a great decision for sure all said and done!  It is cash flowing more than some of my other properties that I thought were great buys.

Hi,

I have multiple duplex's and tri-plex's.  I pay for heat, water, sewer on all of them.  For what I paid for the properties and how much they cash flow it hasn't been worth the exploration of separate furnaces and water heaters.  It would take too long to break even on them and its more to maintain.

This is my personal opinion.  But that's why I like multifamily dwellings is its multiple units with ONE furnace, ONE roof, Etc.  I actually make more money on them charging higher rents with heat and water included. 

I plan to hold a while....but have been snowballing income from my other rentals at each loan.  one at a time.

I am looking to buy/finance my next rental property which happens to be a four plex.

I am just wondering what the advantages/ disadvantages are of each type of loan.  The conventional loan is 25% down 4.375% for 30yrs fixed.  The commercial loan would be 4.5% with 20% down and interest gets re done every 3-5 years.

I have always done conventional loans.  But in the past have ended up paying off 4 of the 5 loans within 4 yrs by snowballing. 

I don't see anything wrong with helping out on a nice listing like that.  I would do the same in your shoes as well.  Just help with the things that don't have a liability concern, let her pay a trade professional for that.  Just help with easy superficial things.  In the end talk to your broker as they are responsible for you.  Hope this helps a little.

Good Luck and congrats!

My wife and I have been using the snowball effect on all our properties.   We saved a reserve then starting paying down rentals.  We have 5 of them paid off that way.  Now we just bought another triplex that I was going to pay down the same way.  But the wife says lets pay down our house. (its at 3.875%).  That's where this whole discussion came from.

Should I be using a different strategy and saving the cash to buy more.  The deals in my area are getting very hard to find that's for sure.

I guess there is always the "human factor"  where the wife says I want house paid off....then she's happy. LOL

I have a question for everyone.  I know it's more of a question where the answer is dependent on a persons goals.  But just curious everyone's take,

If one were in a position to pay down debt on home mortgage with rental income or pay down rental mortgages.

What's your take?