All Forum Posts by: Paul Vasquez

Thank you David for the reply. You had a lot of great information in there. 

I don't like the idea of pulling equity out of my current home. I am so close to paying it off and it were to become a rental, it would have a very substantial cash-flow. 

I certainly appreciate your time. 

Best regards, 

Paul Vasquez 

Hello,

I need advice with renting out the home I currently live in & purchasing a 2nd home to live in.

Current home: single family home, 3 bedrooms & 2 full baths on 1.5 acres, purchased new in 2005 for $157,000. I owe about $68,000. Value is somewhere around $225,000 - $250,000 based on recent sales. I have a 15 yr fixed loan at around 4.3%. Payment is $700.00 & taxes are about $250.00 per month. 

My wife & both have to drive about 30 miles each way to get to work in downtown Austin Texas. We can't carpool because of different hours. 

New home: Brand new development, attached 2-story condo, 2 bedroom, 2 full bath, located within walking distance to my wife's work & a 5 mile bike ride for me into downtown. $225,000 with around $46,000 down (20%). Payment would be $885 + property taxes & insurance. 

Question: Should I just refinance the 1st home & take out the $46,000 needed? If I could come up with any portion of the down payment in cash, should I do it? I may be able to acquire about $20,000 pretty quickly. I've been saving. I was thinking of using about $20,000 cash & take out the other $20,000 from my equity. But I would also need to keep cash in reserves for repairs on the rental right? 

I also found a distressed home that doesn't appear to be lived in, with tall grass & weeds growing but I haven't had luck with finding the owner. I contacted the name of the investment company that I located on the property taxes website & a man called me back stating that he wasn't aware that his company had that home in their portfolio. 

Question: Should I use a realtor to get this process of finding out if they want to sell to go faster? If I could acquire this home at a  good price, should I live in it for a little while & not get the condo? 

I keep telling my wife that the key is to find homes that are being sold below the market value that need some repairs and fixing up. I could be a good candidate for flipping. 

Any help would be much appreciated. FYI: I used to be very knowledgeable on real-estate investing & my training in real-estate appraisal gave me some additional insight. I'm one of those types of people that's great at teaching & not doing. I need to change this asap. 

Thank you!  

@Michael Sato Thank you Michael for the link. I had no idea where to find that info. 

Take care!

Hello @Brady Paseman 

I too live in San Marcos. Let's stay in touch. I know good contractors and have access to really good quality cheap labor. I'm looking to do flips and wholesales. I am trying to learn as much as I can. 

Best regards, 

Paul 

Hello, although I have experience purchasing homes for my own use, I am new to REI. I just recently became a PRO member because I am really hoping to network and possible work together with someone more experienced. If there is anyone near me that is looking for an apprentice, I will do whatever I can do to bring value to the table with hard work and dedication.

Best regards, 

Paul Vasquez