All Forum Posts by: Jonathan McKay

Another late party goer here, but if you're interested in the Spokane multifamily market, I might be able to give you some tips from the things I've learned and mistakes I've made :) 

That's a bit low even for Spokane, but not impossible. On the positive side, Spokane is within a 1-hour plane radius of Seattle. Let me know if you are interested in the Spokane market. 

@Tony Nguyen this is somewhat off topic, but what are some of the horror stories you have?

@Mark Kao - I would ask myself what sort of risk you are trying to diversify away from? 

The obvious tradeoff of a cash out refinance is that you are increasing your leverage. Assuming that you applied all of the money gained from the refinance back into real-estate, it's probably safe to assume that you would increase your expected returns, and increase your exposure to a drop real estate prices. Whether or not that's worth it depends on your goals and the specifics of the deals you enter into. 

Another less obvious tradeoff is income diversification. If your properties are in the Seattle market, most of the increase in value has come from appreciation, and relative cash flows/cap rates are pretty low now. Sounds like you're already on this path, but refinancing and investing in a more cash flow heavy market might make you a little less dependant on real estate prices for long term income.  

Great summary @Ed, thanks!