All Forum Posts by: Sean Stroh

@John Morgan and @Shai Flax central to this thread - increase cash flow or build wealth. Simple. And, a seemingly obvious distinction that I've not totally considered (but...I will do immediately). 

I did chat with my lender yesterday, and downloaded Investing in Real Estate with No / Low Money Down, and - in a short period - it is clear the options are pretty diverse. Nonetheless, you all are awesome. I appreciate the community, perspectives, and willingness to share ideas and approaches.

I hope you all enjoy the holidays.

@Thomas Straub, @Bud Gaffney Thanks! Thomas, it sounds like your deal made a a ton of sense. Really appreciate the example - I have that down in my notebook as a method.

@Steve Vaughan Thanks! I appreciate the perspective.

And, thanks to everyone for the input. You guys are awesome. I definitely have a little work to do - Super helpful to hear from you all.

@Joe Splitrock Thanks for the response. You are correct. Some more analysis is required. I worked through the numbers and I believe Stephanie is right - tap into the equity. This is where I need to learn more, however. Im headed off to dig into ways to get after this as I am not as knowledgable here (pull money out - as you mentioned; refinance to increase cash flow, etc.)

Purchase price: 174
Current Value: 252

Rents:1550

Current rate .0285

Expected rate .031 

@Stephanie P. Absolutely. I appreciate the response. Do you happen to have a book or youtube video that you've used to learn how make equity work for you? 

I am a fairly new investor and have pondered a decision on my first single family home:

a)Refinance the loan to increase monthly cash flow. Or, stay the course with minimal monthly cash flow and faster loan pay off.

I have 9 years remaining on the loan. I have had a tenant in the home for a few years - very reliable. The property cash flows under $100 per month.

b) Refinance. Drastically reduce the monthly payment - increasing cash flow. But, extend the years to pay off the loan. This would reduce risk and provide cash flow for a second rental.

I've set a goal to purchase one SFH per year.

Running the numbers it seems logical to refinance to increase wealth now to provide options as I continue to build toward my goals. 

I am wondering if anyone has confronted a similar situation, if I am missing something, and if there are better approaches.

Thanks!