All Forum Posts by: Cheryl C.

Grace,

I'd be happy to discuss the developments that I am targeting. They are in 20190, although there are a couple other places where I see good value and upside.

Send me a pm.

I'd probably sell it. Do you have an agent? I usually figure out the numbers on my own, but you might want to talk to someone who "farms" (works) that neighborhood. It's hard to sell something that is tenant occupied - they will resent the intrusion, fail to keep the place clean, etc. If you have a standard Bd of Va Realtor Lease you have the absolute right to have a lockbox on the place (60 or 90 days prior to lease end). Do your tenants want to buy it? I would ask them.

I think re-fi appraisals tend to be low.

It's not a "loss" as you have already pulled equity out for your new home.

p.s. I had no idea that investor money was that cheap.

Yes, I would sell. Vienna is pretty desirable. If it's priced right it should sell. It won't be a short so you will have a broader market. What did it appraise for? Maybe the LO was just going off of your numbers? Have you seen the comps and the inventory?

The key is to sell high and buy low. Now is a good time to buy low, although it can be tough to snag a deal. Cash investors are out in droves.

BTW, what are you getting quoted for investor money (rate/points)?

Grace,

You won't have to 1031 if you have lived there 2 out of the past 5 yrs. If we assume a net sale price of 550K and a loan payoff of 400K, that leaves you with 150K to invest with.

You will do better with less expensive properties. Demand is incredible right now and rents are up 8%yoy in NoVa. So you could take your 150K (assuming that's the number) and use it a downpayment on 2 or 3 places with better cash flow. I doubt you want to deal with the types of places/areas that would net you the cash flow others here are talking about.

I agree that there won't be much appreciation, so you need to get a good deal going in. I believe the new metro stops will give us a decent bump and RTC is on fire. Heck, I might even more over there.

I would not rent it out by the room or to a group. Other than the cash-flow issues you mentioned, you might tend to have alot of turnover with a family renting a house. Most will want to buy as soon as they can. Will these people renew for 2 yrs at a higher rent? Do you have other funds available for investment?

I am concentrating on smaller places which generally cash-flow better. You are wise to have purchased in a nice area. If you can net 550K, you could 1031 into 2 smaller places. I'm concentrating on the nicer areas of Reston. Close to RTC and the Silver Line. There are some good buys right now in the lower end.

What area is your house in?

Grace, is it presently rented? If so, what is the lease term and how does it show? Tyson's is a good location. We have had a few rentals there. Have you checked the sale comps?

How did you get it? Mine was in 2005 (shocking!). It took years of looking on and off for this type of property/deal. This time when it popped up on the mls, I went directly to the lister and had it UC in 2 days. I've lost other deals to other agents and/or their friends and relatives. I know that not having to split a large commission can affect how fast your offer gets ratified and even if other contracts/showings occur.

Anyway, in the worst buyer's market ever I got my best deal.

I've been buying distressed condo's for the past two years. My rents vs price are alot higher than yours. For example:

Purchase 115K - rent $1,300
Purchase 175 - rent $1,700

These are nice places in great locations. I would live there myself. It's a high demand area and the subway is coming in a year or two.

There is always (imo) a trade-off between return and appreciation and/or "headache factor". I'm getting quality tenants. I've bought 4 in one development and 3 in another in the past 2yrs.

These are all within a mile of my house and have fee-based in-house maintenance and repair. Virtually no work for me. I agree with many that condo's are not usually the best "investment", but sometimes they make sense for buy and hold LL's.

Can you cash-out refi your personal residence and pay-off the cc debt on the Hud-1? I wouldn't close these accounts.. I agree that an alternative is to ask for an increase in the credit limits on your cards. Do you have other cash to paydown the credits cards?

You seems thin having that amount of cc debt compared to your income. Can the lender you are dealing with place a first trust (paying off the cc) on one of your free and clear rentals? Mortgage debt is looked at more favorably by fico.

We got caught up a little when heloc's go cancelled/frozen in early '09. Now it looks like we are using a high amount of available credit. I tapped several when I felt the cancellations would be coming. Why heloc debt is treated as revolving instead of mortgage is beyond me - but very detrimental.

I agree on the Hard Inquiries - avoid them. Our scores dropped from 810 to 750 after the heloc freeze. Good thing I don't need any conventional mortgage financing. I use a small bank that cares more about the equity in the deal and our past relationship.

Probably not. Looking for a mid-upper tier property in a metro area. Price range, I imagine, will be much higher. Thanks for sending this one to me.