All Forum Posts by: Will Bachino

Need some help deciding whether to buy a rental on a smaller lot to reduce landscaping and overall maintenance or a larger lot for the sake of faster appreciation. I'm looking at a single family rental in a suburb of Austin Texas. Thanks! 

All who commented, 

I did not buy the house after all. With increasing rates and such low FCF, I passed. 

 Judd 

Easier said than done. Also we don't have a state income tax. Not sure about your situation 

 Thanks Marian. We considered leasing our current home but my wife loves where we live. We'd also be downgrading substantially if we did which neither of us want. 

 Thanks Judd. Fortunately I live in Texas. Unfortunately it's not cheap. 

No just stating facts. Thanks for these comments and your assumptions about my alterior motive. Hope you got your vote. 

 Jesse, 

Gross rents less 6% vacancy $24825 annually. After all expenses but Before HELOC int expense, $2600 annually. And that's year 2. Because it's new construction, which I also failed to mention, I pay property taxes on only the value of the dirt putting another $6000 in my pocket year 1.

Jeff, 

Already cleared to close with Provident Mortgage. No seasoning of funds required. Only a lender letter showing what new min payment will be on HELOC.

good points, Jesse. I guess I could have provided more details. I'm longterm on this one as the area is growing quickly and is the strongest real estate market in the nation for years now. Also, I'm already pre-approved. Lastly homestead lin laws inTexas all but prohibit me from losing my home should markets tank and I don't make my HELOC payments. It's clear you don't follow the philosophy of using other people's money when investing. I do.

I'm about to purchase my first investment property. I'm going to use my HELOC as my down payment plus a 30 yr fixed rate mortgage. My questions are whether or not that's a good idea, whether I should count that interest only payment as a business expense when comparing properties or should I exclude that when comparing, so that I have an apples to apples comparison and a true cap rate in the traditional sense? Additionally if after the interest payment I'm still cash flow positive, is this a decent investment. I'm in Buda, a suburb of Austin, which is appreciating like crazy so I want to get in quick. I'm buying a $273k 4bd 3 bthrm... Thanks!