All Forum Posts by: Steven W.

@Mike H. What a fantastic analysis! Thanks so much. Actually 99K was the purchase price, we put 15% down, financed it down to 4.25%, and owe 79.5K on it. 

@Bill S. I'm trying to wrap my head around the benefits of paying this off more aggressively. If I pay this down, then yes, it leads to greater cash flow, but am I not just parking that $$ into the house when it could be used to help purchase another property? And at 4.25%, should I really be rushing to pay back cheap money? 

I'd really love your thoughts! Thanks for continuing the thread--it's a great education for me (and I hope others!).

Steven

Hey @Matt M. , thanks for the thoughtful questions. Since I live in San Francisco, there's no way that my real estate investments will replace our income, at least not until retirement (I'm 50). I don't need the cash flow right now, except to service debt/cover expenses/save for additional properties. 

We are definitely not finished buying properties, but I think that we will exhaust our own resources first--use of HELOCs, cash out refinances, selling some of our mutual funds, setting up a self directed IRA and using the $$ that's in there for RE.

Once we've used much of those resources, then we'll think if selling is a good idea.

Thanks for making me think more carefully about this. I've asked my RE broker in Denver to provide some comps for me on the property just so I get a better sense of what the place is worth.

Steven

Hi @Johnson H. I'm in. This'll be my first meet-up. I'm very much looking forward to it. Thanks so much for putting this on.

See you on the 10th.

Steven

@Anson Young and @James Stevens Thanks so much for bouncing these ideas back at me. I don't need the 65K right now, and I know that the Denver market has heated up so much that it's very difficult to find anything now even somewhat attractive to an investor.

That place was a PITA for the first year or two--tenants trashing the place, problems with Section 8 regulations, etc., but I think that we've turned the corner on this one.

Since I have more than 4 investment properties, my lender tells me that I can't do a cash-out refi, but can I do a HELOC?

Steven

Hi everyone,

Here's a question that I have. 5 years ago, a bought a ramshackle place (that was rehabbed) for total price of 99K in Denver. I'm now getting $1250 a month rent through Section 8.

I'm getting some comps on it right now, but let's say it's worth about 165K now. What would you all do?

1) Keep it and allow it to appreciate more (and try to raise the rent, though it's tough with Section 8 regs)?

2) Sell it now, even though I'd be missing out on nice monthly cash flow ($600 a month that inlcudes PITI and PM fees) and reinvest in other properties?

3) Try and get a HELOC or second mortgage if that's possible and use the money to reinvest?

I'm sure that there is no "right" answer, but I'd love to hear what people think.

Thanks,

Steven

Thanks @Brian Eastman for the clarification. I'm thinking of using either Sense Financial or IRA Services as my SD IRA custodian.

Steven

Gents,

I had a very good conversation on the phone today with @George Golub from Growth Equity Group. I very much like the idea of working with a turnkey provider for my Self Directed IRA, since both my wife and I work full time.

I asked George to send me some references that I could contact who have worked with them. I'll post here what I find out.

Should I be looking into other groups to purchase property from? I'd appreciate any and all suggestions as I am new to investing in Self Directed IRAs.

Thanks!

@Account Closed That's a great suggestion about buying properties in only my name and/or my wife's name, but unfortunately, given our debt, I wouldn't qualify by myself. I need to get a higher paying job!

Short of that, once we get to ten properties, I'll be looking for advice as to where to get money, e.g. portfolio lenders.

I know Venice Beach a bit, and I think that lack of parking would be a deal breaker, unless you leased a spot somewhere for short term renters. While it's true that you can walk to many places in Venice, if you are vacationing, you are either driving to the vacation house or at some point, you'll want a car to see something other than Venice.

I would think that a parking space would add/subtract a couple of hundred thousand dollars to the price. I know that it does here in San Francisco.

@J. Martin This is a fantastic analysis of the market in Oakland--thanks so much! As far as buying a place "sight unseen", I was being a bit hyperbolic, but I think that I could buy a SFR in a "nice" suburban area of Dallas, or OKC, or Memphis with greater ease than doing the same in Oakland. I think that one really needs to know the areas in Oakland to a greater extent. For example, my friend lives in a cute house off of 56th and San Pablo. Very close to shopping in Emeryville, easy access to the bay bridge, great weather, low prices....but, I wouldn't live there with my family no matter what. A drug dealer got shot and killed across the street from them a couple of months ago, and I don't think it was a complete anomaly.

That's why your input is so invaluable to help us understand the ins and outs of the area.

Kudos to you!