All Forum Posts by: Matthew McNeil

 My approach is very similar. Works for me and I plan to stick with it.  

The definition of "Cash Flow" seems to be understood to mean different things to different investors.  Its a topic that's being discussed, or should I say fleshed out, more often here on BP.  Can you believe that someone actually had the audacity to say that cashflow includes gross rental income, which was justified by claiming ALL the cash went into your pocket first, then afterwards you spent it on various obligations; taxes, mortgage, insurance, etc. Arguable of course, but smart investors are looking at IRR and CoC in addition to cashflow. The metric of determing cashflow based on the static rule of thumb is not an end in itself. Its only one part of the totality of looking at the financial health of the asset.

Defining a "cashflow goal" is a limited goal that misses what others are pointing out in the thread.

Ping @Dave Foster.  He's the go to guy regarding Exchange advice. 

 These links may help; 

https://www.bankrate.com/finance/mortgages/what-is-mortgage-recasting-and-why-do-it-1.aspx

https://www.biggerpockets.com/forums/49/topics/130109-recasting---a-tool-you-didnt-know-you-had

The refi and recasting are essentially the same, however the recast lender fee is a flat $500 fee (what my lender charged me) with no closing costs. A refi is basically applying for a new loan. Yes, a recast is paying a lump sum toward pricipal paydown. However, when someone considers a recast they really need to understand how that fits into their strategy. For example, I can spend $30k as a downpayment on a midwest TK which is outside my comfort zone because I don't have boots on the ground. Or I can recast one of the properties which ends up with the same result as buying a TK; $%150-200+ CF. However, I've also lowered my LTV and have more leverage to use. Granted, that's one tool I use with my strategy as an investor positioned in a high appreciating market.

 Brian, essentially "yes" to your first question.  However, investors should look at how it can benefit or position them better as they consider their overall portfolio and long vs short term goals.  As you wrote, its a tool in the tool box.  Personally, recasting at year 7+ wouldn't work for me as a long term buy and hold guy because it resets the clock.  But I've recasted at year 2-3 resulting in increased CF while I'm barely out the gate with the asset with the goal to leep it long term and use leverage later. 

Like I previously posted; its not for everyone.  But I've made it work for me with the advice of my financial advisor as we carefully consider all my investments.

Interesting post;

https://www.biggerpockets.com/forums/49/topics/130...

 Not necessarily.

My Title policies state; “The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured after acquisition of the Title by an Insured or after conveyance by an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title.” Its best to ask the Title company if the insurance coverage remains intact if the asset is transferred.

Recasting is a strategy rarely discussed on BP.  Its not for everyone, but worth checking the numbers.  And your payment does go down, meaning it impacts your CF. 

As John wrote; its an age old question here on BP.  

Questions:

1. Are the names on the mortgage the same as the names on the LLC?
2. Were the mortgages conventional; specifically Freddie Mac or Fannie Mae?
3. What's your LTV on each property?

First of all, you joined BP just today and this is your first post.  

Secondly, your profile is empty.  I'm sketpical, but I'm gonna give you the benefit of the doubt and offer my response...

If you want to "blow" 4 million then give it to me and I'll "blow" it for you.  BP is not a place where you'll find RE investors "blowing" money.  They're working to invest it wisely.