All Forum Posts by: Sharee Paulino

@Craig Jeppesen Thank you for the input. That is definitely an option. I am just trying to use this trapped equity for more deals, sooner. 

The search continues. Thank you again 

Hello again BiggerPockets, I have a Dilemma I would love to get some input on.

I purchased a condo in June of 2017.

All in with rehab, the cost was $75k (including furnishings).

It has been on Airbnb for nearly 2 years now.

After all expenses, (including management) the property nets around $3k/month (hands free) consistently.

It is a condo that has proven nearly impossible to (re)finance (due to mostly investor ownership in the community).

Now it has a market value of roughly $150k+. Even with the new valuation the property is still preforming at a 20% plus cap rate.

I would love buy 20+ caps (B class properties) all day, but the lack of leverage presents a problem when one is trying to scale.

I have however, been able to reinvest the cash flow directly into a couple small multi family deals.

On the other hand, In my market the extra $ down (from sale or refi) can absolutely get me a larger multi family deal (which is my desired trajectory).

so, the question is:

(A) Sell a 45+ %+ cap rate property (which truthfully makes me cringe), take the double up on investment and 1031 to a bigger deal.

(B) Keep property and scale accordingly via reinvesting cash flow + savings.

Or,

(C) Something I may be unaware of.

Any/all input would be greatly appreciated.

@Luis Rinconeno I believe you are referring to deal machine. It’s extremely useful. 

Good luck with it, and Happy investing!

Hello again BiggerPockets, I have a Dilemma I would love to get some input on.

I purchased a condo in June of 2017.

All in with rehab, the cost was $75k (including furnishings).

It has been on Airbnb for nearly 2 years now.

After all expenses, (including management) the property nets around $3k/month (hands free) consistently.

It is a condo that has proven nearly impossible to (re)finance (due to mostly investor ownership in the community).

Now it has a market value of roughly $150k+. Even with the new valuation the property is still preforming at a 20% plus cap rate.

I would love buy 20+ caps (B class properties) all day, but the lack of leverage presents a problem when one is trying to scale.

I have however, been able to reinvest the cash flow directly into a couple small multi family deals.

On the other hand, In my market the extra $ down (from sale or refi) can absolutely get me a larger multi family deal (which is my desired trajectory).

so, the question is:

(A) Sell a 45+ %+ cap rate property (which truthfully makes me cringe), take the double up on investment and 1031 to a bigger deal.

(B) Keep property and scale accordingly via reinvesting cash flow + savings.

Or,

(C) Something I may be unaware of.

Any/all input would be greatly appreciated.

@Danielle Wolter That is something I will look into. I’m  guessing, because I didn’t have a portfolio at the time, I Subconsciously blocked it from my mind.

Super helpful! I will report back in the next few days with any updates. Any other feedback you or anyone else may have would be extremely helpful as well. I have obviously had at least one blind spot.

Thank you again 

@Nik Moushon I actually purchased it outright and currently  owe nothing on it. 

As far as the number of lenders I have reached out to... I can say close to 20, from private money to local and large banks.

I really appreciate your  feedback though. As well as anything else you can come up with.

Thank you again 

Hello BiggerPockets, I have a Dilemma I would love to get some input on.

I purchased a screaming deal in June of 2017.

All in with rehab, the cost was $75k (including furnishings).

It has been on Airbnb for nearly 2 years now.

After all expenses including management the property effortlessly nets around $3k/month consistently (according to my Trailing 20) which is in the 45%+ cap rate range.

It is a condo that has proven nearly impossible to (re)finance (due to mostly investor ownership in the community).

Now it has a market value of roughly $150k+. Even with the new valuation the property is still preforming at a 23% plus cap rate.

I will buy 20+ caps (B class properties) all day, but the lack of leverage presents a problem when one is trying to scale.

I have however, been able to reinvest the cash flow directly into a couple small multi family deals.

On the other hand, In my market the extra $150k down can absolutely get me a larger multi family, which is my desired trajectory.

This begs the question; To sell, or not to sell?

(A) Sell a 45+ %+ cap rate property, take the double up on investment and 1031 to a bigger deal.

Or,

(B) Keep property and scale accordingly via reinvesting cash flow + savings.

Any/all input would be greatly appreciated.

Thank you in advance.