All Forum Posts by: Marshall Milinazzo

Hi All,

     A little about myself, im new to the real estate investment arena,  but and fairly good with financials, and just wanted to bounce my thought process off a few folks in hope someone more experienced can provide me some guidance. I know this is a bit long but would really appreciate a sanity check from a few folks. 

   I have pivoted my investment strategy from traditional investments to thoughts and dreams of real estate rentals. I bought my first home a short sale at age 25 in 2009 ( house in the north east @275k) .  At that time I had the brilliant idea that I should pay this off as fast as I can, and had several roommates over a 8 year period, and accomplished my goal of being 33 and mortgage free (perfect time to throw all my cash into a loan at 3.25% in a bull market.. mistakes were made) .  Im fearful as many are im sure of a market readjustment (stock and real estate) in the next 12-18 months and have been thinking about how to best prepare for it so I can take advantage of property at a discount as the cycle starts to decline. I have saved up a reasonable amount of stock investments over the last 18 months, and have started to pull out as my concern continues to grow over the market reaching its peak as my shares start going to long term cap gains.  

My home is now valued at 375k and I am considering two options. One being a HELOC with its variable rate for anything borrowed, but very minimal fees until I choose to use money. The other option is a cash out refi. I spoke to Quicken loans today and they claiming I can get a 3% loan with up to 85% LTV, due to my credit score being 830. This got me thinking. If I pull out a substantial amount @ 3% (250k) assuming a few thousand in fees, and hold that in a high yield CD or Savings account at 2.5% Id only be losing .5% on the amount borrowed and can wait until the market readjusts and start BRRRRing in a lower cost area in the Midwest/ South west.

Is this a reasonable strategy? The loan rates they quoted seemed too good to be true, but Im concerned with a HELOC if the market drops, and the interest rate is variable, when the Feds start raising rates It would see to be far less beneficial to go that route vs paying .5-1% with a cash out refi, when im putting it in a high yield account, and holding onto the cash.

Thanks so much, Marshall

@Tim Herman  Thanks thats very helpful I didnt see the trailer as a depreciating asset,  but that make sense  and the other fees for mobile is also helpful to know.  

Thanks much, Marshall  

Hi All,  

    First time posting,  and ive just recently ( last 2 months gotten into real estate).   Im from the North East and am looking to invest in the South East.   Ive read quite a few books and listened to a bunch of podcasts and have started getting into analyzing deals.  Ive subscribed to Rentometer and have started searching for homes in the Orlando area.  One of my deals I just cant figure out why it hasnt been scooped up and im looking for some pros to help me understand.  

 Location:  https://www.zillow.com/homedetails/2894-Stallion-Dr-Orlando-FL-32822/2102405734_zpid/?

Rentometer Price:  1360$ 

Property Taxes: 53/m

Condition: Move in ready. 

Crime : Low according to Trulia.  

This house meets the 1% rule by 2x.  Why would this not be a buy? If it is a buy,  enjoy this freebie! 

My analysis give me like a 73% COC return.

Is rentometer just not the tool to use? 

Thanks for any help.  

Marshall