All Forum Posts by: Sara Kirkpatrick

@JD Martin

Thanks- I agree! Our original accountant retired and we inherited our current accountant. She’s typically spot on but her response to pulling equity out blew my mind. I was under the impression she does have real estate as an investment but if she does, she’s absolutely more cautious and has a different philosophy than I do.

@Forrest Williams

Thanks- I was thinking along the same lines- if we did do this it would have to be a “home run” type property where the risk would be relatively low.

My husband and I own our primary home outright, it is not in our LLC where we hold our rental homes.

We had the local bank do an in house appraisal and it came back about much higher than we anticipated.

I asked our accountant about pulling equity out to purchase a rental home and she absolutely advised against it- for tax reasons (we would have to count the interest paid from our LLC as income and we are at a place we don't want to do that- trying to keep our income low). and risk (we could lose our home). I wasn't planning on pulling anymore than 1/3 of the value out but that's just a matter of risk tolerance).

Any suggestions, ideas on how to not let that equity just sit there? We do have plans to brick the house to do a forced valuation here in the next year or two.

Thanks!

@Nate Sanow

Politicians are using real estate as an investment, as in the ones who write the rules for real estate are the ones using real estate to their advantage. Changes for sure, but not massive ones.

@Eric Bilderback

I’ve been there myself a time or two, haha!!

@Eric Bilderback

We’re in rural Nebraska where pretty much everyone is essential, up until this month we were 100% paid.

One of our long term renters unfortunately caught the ‘Rona and was quarantined at home without pay for about 3 weeks. The family has been great to work with the past 4 years and they’ll get caught back up.

Side note: He stated that he’s had worse hangovers and we’re thankful it wasn’t a serious case.

@Kenneth Garrett

That’s close to my numbers/mortgage payment. We live in a small town, rural area and the taxes do run low here.

And thanks! I knew when I ran the numbers that it was a good buy. I just don’t usually figure cash on cash and wow, those are some good numbers!

@John DeBetta

Small town, in a rural area. I wish there were more deals like this! We try to buy one house a year here- there just aren’t a ton of houses for sale. Looking at spreading out into other areas though

Last fall my husband and I bought a duplex for $42,000, making a down payment of $10,000.

Each unit rents for $550/month and we’ve had it occupied all but one unit for two weeks. ($13,200/year)

Taxes are less than $500/year and insurance is at $700/year. 
we’ve had a plumber over once for a clogged drain for $60.

I come up with a cash on cash of 96%?

I don’t usually figure my deals using cash on cash, but that can’t be right, what am I leaving out/where are my figures wrong?