All Forum Posts by: William Coet

 Agree..  so many just dont think about the costs of all these refi's 

to me its a few things.

Of course you have math and we cant argue with Math. as it relates to leverage and the ability to scale with the minimum amount of ones personal cash.

However I think one needs to look at some of the other factors to determine mortgage pay down and debt.

So to me personally  high quality stabilized rock solid investments paying down a 3% note would not make sense.

If people are buying low value high risk rentals ( and many dont know they are high risk until they buy them)  but those type of rentals I think having minimal to zero debt is while not mathematically the best but for safety and long term viability in the land Lord bizz that's to me would be the goal.

Then you have the who is in a better position when the #@$% hits the fan like what has happened 4 times at least in my career.. lots of fully leverage investors and companies did not make it..  those with high equity positions or little debt rolled right through..

Also depends on what your doing in certain lending environments focus on NET Worth that is tangable  IE the bank knows that your 20% equity in property X is not real.. they know if you were in a position that U had to liquidate that equity is really 0 to maybe 10% at best.

When you offer a balance sheet with a healthy amount of paid for or low leveraged assets it does help you scale to larger projects.

And or like those that rent their balance sheets to MF investors  so there is more to the story than just math. 

UPDATE- we have now had our 2nd official estimate. This time from someone who understood that we simply wanted to do the minimum to get this thing stabilized and safe. He came out of the crawl space and basically told me that it was worse than he had expected. We are needing to rip up at least 800sf of *perfect condition* solid hardwoods to replace rotted out subfloor and the support beams. This area was all affected by a larger than normal duct line that sweats and is touching the wood so it essentially caused moisture to build up on this whole area. Some of the joists had already been sistered 4x and in other parts there was evidence of prior “band aid” fixes (shims wedged, 2x4s propping up some subfloor sections etc. Luckily we do have a contingency on a clear CL100 inspection (which there is no way it’s coming back clear!) but by question is- ***at what point do you decide the deal is not worth pursuing?***

Some rough numbers: under contract at 300k, rehab budget was 30k (not including subfloor/joist/ductwork surprise) ARV 430k. Combined rental income would be approximately 36-40k per year)

@Tanner Morrill more and more I'm starting to really like these tiny home concept. But, I noticed (for at least in the Boxabl website you shared); there seems to be a waiting list. I'd imagine these things are not easy to get a hold of and will probably get only more difficult to attain as they become more popular. Thoughts?