All Forum Posts by: Patrick McGrath

@Ray Miller

Thats a very personal question base on risk because you are going to be retiring soon. But I also believe you shouldn't wait for the right time to do what you really want to.

@Allison Leung

Improve app! Calculator, insights, post ability to add pictures.

@Troy McElhaney

The goal is to build enough cash flow to do REI full time. Its just one of those things were it is my first house, so still trying to take the emotion out of the deal.

@Will Gaston

That is what my thought process is right now. I could buy a 3-4 unit that would bring in $1200-$1500/ month cash flow with that capital.

So I have a property that we purchase in 2013 for $195k that we lived in until 2017 and then turned into a rental. We took out a HELOC and used that to purchase rental #2. Then earlier this year we refinanced it, paid off the HELOC and it appraised for $290k. With the current housing market if we put about $5-$8k into we can sell it for $310-$320k. Current tenant is moving out next week.

Currently Mortgage = $1525 PITI @4.875%

Spend $2k to get it rent ready and New rent would be $2100

Gross profit = $575 - $315 = $260 Cash Flow.

Question is should we sell now since we lived in it 2 of the last 5 years and pay no capital gains which would net us $60-$70k.

Or refinance to 3.5% adding an additional $150/month cash flow, bringing it to around $410/month.

Appreciate your insights and thoughts.

@Maria D'Aura

We have bought 2 properties that were at or below 1% at purchase. After rehab and placing new tenants they are now 1.5% + and cash flow very nicely. Deals are out there, just have to have the vision.

@Anthony Then

My average return before refinancing is 20%-30% and after refinancing 100%+ - infinite. Bought my first house with 3.5% down about $10k. Now have 11 doors and about $5k monthly cash flow.

@Bonnie Rhodes

Bought first rental at 30, now 3 years later have 5 for a total of 10 units. Goal is 25 units by 35!

@Eric Bilderback

100% here with 6 doors

@Matt Jennissen

Matt,

Great goal, I am right there with you! I'd say continue to look for value add MF in your area. Try and see if you can owner finance a few deals and get those unit numbers up quicker. Either way keep on pushing and don't give up. I believe you will get there.