All Forum Posts by: Samantha Springs

Quote from @Theresa Harris:

When did you move out?  you mentioned buying it in 2020, but not when you moved out.  I'd look into the capital gains tax implications if you sell it now vs holding on to it.

Yea, I've done the math on when I would have to sell by to qualify for a 121 exception. If I sell before early 2026, I would qualify.

Quote from @Brian G.:

@Samantha Springs can you rent a room out in the unit you occupy as your primary? This can change the math pretty quickly. House hack super charged!

I have also considered this, but there's only one shower and I am not prepared to share the shower with a tenant :).

Quote from @Travis Biziorek:

Hey Samantha, I'm personally not a fan of paying off mortgages—especially fixed-rate long-term debt like yours. With historical inflation in mind, that mortgage is essentially an asset. Plus, given where rates are right now, I genuinely believe we're at or near a local peak.

I expect rates will head lower soon, maybe revisiting 6% in the coming months. In fact, I've got some bets in the markets that hinge on this happening. The incoming administration definitely won't want high rates for long either, which might work in your favor.

My two cents: I'd hold onto both properties. This is fixed-rate debt that you'll probably be thankful for down the line. If things are tight right now, maybe consider a side hustle or extra job until rent adjustments give you more breathing room. I think if you sell now, there's a good chance you’ll look back in 5-10 years and regret letting go of such good debt.

I’m not here for payoff either, but there is a big difference to me between paying OFF and paying DOWN. This is a million + dollar property, so pay off is not an option 😁, but I appreciate your insight. I have been looking into side hustles, but with my current full time job, it’s easier said than done. I am leaning your way though and hope to get a raise soon!

Quote from @John Clark:

Quote from @Samantha Springs:

BP! Would love some thoughts and opinions from the community. Here's the sitch:

I purchased a duplex in LA in 2020 with a sub-3% interest rate. I moved out of it and now operate it as a rental (one unit LTR, the other MTR). It cash flows a bit, nothing life changing.

I bought a second duplex in LA this year that I am currently house hacking (live in one unit, the other is LTR). I did a temporary rate buy down assuming rates would go down much quicker than they are, so the interest rate goes up to 6.1% next year (2025) and again to 7.1% in 2026. The mortgage payment is already high and my life circumstances have changed, making the payment even more of a stretch (not impossible, but definitely above the recommended percentage of take home pay).

I am considering selling the first property next year (which has about $200K in equity) to do a mortgage recast on the primary and get my payment to something more reasonable. I am hesitant because the first property is located where all the Olympics and World Cup activity will be in the coming years and the interest rate is so fantastic. But I also sometimes think owning only 1 property in LA would be less stressful and a more reasonable mortgage payment would improve my quality of life. I am not looking to build a real estate empire, just a few doors, and will probably only purchase out of state in the future.

What would you do? Are there other ways to reduce my mortgage that I am not aware of (besides refinancing)? What other factors should I be considering? Thanks for reading and any feedback.
 

Sell the second property and move back into the first?

I’ve definitely thought about that! But I just put a ton of money into the second place for a new kitchen and the first place is not in an area I want to live in anymore. It was fine during the pandemic but not at this stage for me. 

Quote from @Samuel Diouf:

Hey Samantha, if your first property is cash-flowing in LA, I would hold on to it. The amount of cash-flowing deals in your market is extremely low, so when you get one you should hold on to it as long as you can so you can reap the benefits of that LA appreciation especially if the property is in a good location. 

If you need access to the $200,000, you could use a HELOC to temporarily pull equity from the property when good opportunities arise.

Thanks for the feedback. Taking on more debt through a HELOC does not solve the problem of the high mortgage payment on my primary, however. Lowering the primary mortgage payment is the ultimate goal, not acquiring new properties.

BP! Would love some thoughts and opinions from the community. Here's the sitch:

I purchased a duplex in LA in 2020 with a sub-3% interest rate. I moved out of it and now operate it as a rental (one unit LTR, the other MTR). It cash flows a bit, nothing life changing.

I bought a second duplex in LA this year that I am currently house hacking (live in one unit, the other is LTR). I did a temporary rate buy down assuming rates would go down much quicker than they are, so the interest rate goes up to 6.1% next year (2025) and again to 7.1% in 2026. The mortgage payment is already high and my life circumstances have changed, making the payment even more of a stretch (not impossible, but definitely above the recommended percentage of take home pay).

I am considering selling the first property next year (which has about $200K in equity) to do a mortgage recast on the primary and get my payment to something more reasonable. I am hesitant because the first property is located where all the Olympics and World Cup activity will be in the coming years and the interest rate is so fantastic. But I also sometimes think owning only 1 property in LA would be less stressful and a more reasonable mortgage payment would improve my quality of life. I am not looking to build a real estate empire, just a few doors, and will probably only purchase out of state in the future.

What would you do? Are there other ways to reduce my mortgage that I am not aware of (besides refinancing)? What other factors should I be considering? Thanks for reading and any feedback.
 

Thanks all! Very helpful feedback. I decided to do a month to month lease at a higher rate once I reviewed his references, spoke to the previous landlord, and reviewed his bank statements. They just passed a law where I cannot collect advance rent, so that wouldn't work. A co-signer would have been a good idea and I will keep in mind for the future!

BP! I have had the back unit of the duplex I just purchased to house hack listed for almost a month. I have had some showings but no applications until today. The applicant has no verifiable income (he is an artist and woodworker), but has basically zero debt and an excellent credit score (almost 800). He has lived at his current place for over 5 years and I have asked for his bank statements and will check his references. He says he is getting a regular job in Q2 of this year, but who knows. 

He told me of his situation during the tour and he is willing to pay several months of rent in advance. The home will be for him and his pre-teen child. Thoughts? Run for the hills? Wait for another applicant? 

Quote from @Mark Pedroza:

Quote from @Samantha Springs:

Quote from @JJ P.:

I'm not sure if I can post a link, but Dawn Richenbach, "The Note Queen," has helped me in the past. She does all types of loan purchasing and what not.

@Shannon Wright can assist in all 58 CA Counties. She's with New Venture Escrow in Temecula....good luck..

Thanks! So much!

Thank you!

Quote from @JJ P.:

I'm not sure if I can post a link, but Dawn Richenbach, "The Note Queen," has helped me in the past. She does all types of loan purchasing and what not.

Thanks! So much!