All Forum Posts by: Account Closed

Here is the scenario. I have a home that I’ve owned for 6 years. It’s worth about $380k and I owe about $240k. I want to strip out as much equity as possible. Today a wild idea occurred to me and I want to consult the community. But first the traditional options and why I don’t like them.

1. Refinance - This would require 80% LTV and only allow me to strip about $64,000. Also requires closing costs.

2. HELOC - same as above with a higher interest rate and an additional monthly payment on the borrow. Also requires closing costs.

Now for my wild idea...

3. Sell to myself - If I buy the house from myself using an FHA loan @3.5% down I'll pay about $13k plus closing costs. I'll get the tax exemption having lived in it for 2 of the past 5 years along with a new basis of $380k. Most importantly, I'll clear about $140k on the sell side with $13k plus closing going back in for a net of $127k. I realize I'll pay PMI and my monthly cost will go up..but putting an extra $63k in my pocket in the middle of a pandemic seems like the move.

Has anyone ever done this?? Is it even legal??

@Jorge Vazquez Blackstone didn’t use Realtors to analyze the metrics of their investments. That’s a job for their analysts.

If you’re going to scale, don’t ask the cook to steer the boat.

@Austin Kost I am looking for a prop management company for 3 sfh rentals and want to pick your brain on rents for a quadplex here in Phx we are analyzing. If you’re in the wholesale game, I’m a buyer all day long. Let’s chat.

I’m specifically looking for a smaller property management company that is hungry and customer oriented with reasonable fees and good local relationships.

@Carol Shilliday I am a buyer of the build to rent product here locally. I own 3 currently. I’d love to chat about your product and plan sometime!

@Tiffany Goglin

Here is an option agreement I found. This should get you started but have an attorney review.

https://lookaside.fbsbx.com/file/Standard%20Option%20Agreement%20AZ.pdf?token=AWxNjvDcMbH7lRFZb6BKYbQih9gUvn7bAJpVhZLgMEGFhre7QHJbAdvaD0d7_YgwBYnRqzYJq-3XaDZ_9DDoJLL3wMmzoS237pEQ8kBUpn254kGQGZIXzzzD_imsgaSD9YRilUdLme_NKxqzYqjt9d27c446qOJ2ahXK5pkxN43QkKNeoMOG2f68I4WeN7qvWU7mU3K8nndz3-btM9ZC_-Gx

@Michael P. It’s 50 degrees in Phoenix today with a high of 77 for the week. 😎 Ummmm...I mean it’s miserable...stay away.

@Jovann Thompson I only had about $10k to invest in Phoenix 4 years ago. Now I own 3 rentals worth $1M with decent cash flow and a ton of equity. Find the right people to guide you and get started!! Yesterday! Let me know if you wanna chat Phx market.

@Isaiah Pearson it’s MOVING out here in AZ right now. Properties are flying off the shelves and inventory is at a low point. More wholesalers are absolutely needed here to find those hidden gems!

@Kyle Johnson I’ve got several contacts here in terms of lenders. At 5+ units you are looking at a commercial loan of course. Let me know if you need some help. Happy to oblige.

@Kyle Johnson If you want to chat about the Phoenix market I have got a lot to say. Send me a DM and let’s connect.