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I doubt a person witha million invested is going to be taking advice from anonymous posters on an internet site. .
Eh. Even Fortune 500 companies like Ford and Starbucks run crowdsourcing campaigns to see what kind of ideas anonymous posters on the internet will come up with. A lot of it is marketing and brand engagement, but you never know... some random person might come up with a good idea that you never thought of.
Reminds me of the "Suze, how'm I doing?" segments where people want to be rated on their retirement planning, but to me it's just an opportunity to get pats on the back for how wonderful they're doing. "Suze, I have 1.2 million in my 401K, 475K in investments, no debt, blah blah blah"....oh, shut up! LOL
The suggestions for cash out on rentals are seemingly logical - however - most banks will not use investment properties as collateral, unless you are a client of their private banking operations.
You'd need to hunt down portfolio lenders, which usually come at a price of higher fees and higher rates, and restrictive lending capabilities.
The 100,000 property was bough as a vacation home and in hopes to flip it and sell it. This all occur in the middle of the financial bubble to I bough high and got stuck with it. I haven't rented the unit because neighborhood deteriorated significantly and I feel I take more risk renting the unit than having it vacant. Also the apartment is in another city 4 hours away from where I live so anything were to occur to the apartment I would be a headache to manage.
From your other posts, it sounds like you pride yourself on doing all of the maintenance and management of the properties in your portfolio. And you don't have to share any of your profits with middle men. However...
If I were in your shoes, I would hire a local property management company to deal with this condo that's four hours away. They do have mgmt fees which will cut into your profit, but still you'll get rental income that will be greater than mgmt fee, property tax, HOA monthly payment, and basic maintenance. Plus, rentals are usually safer when they are occupied (many people break into vacant properties to squat or cause vandalism). Then when the market picks-up, you could also get a higher selling price when demand picks up in that area. How much lower could that property value possibly drop? $55K sounds like too good of a deal for a Florida condo (unless it's in the gator swamps!).
This is probably moot since it sounds like you're under contract already to sell the $100K condo for $55K.
The suggestions for cash out on rentals are seemingly logical - however - most banks will not use investment properties as collateral, unless you are a client of their private banking operations.
You'd need to hunt down portfolio lenders, which usually come at a price of higher fees and higher rates, and restrictive lending capabilities.
You do what you need to do. Higher fee and higher rates comes with the territory, but you are comparing apples and oranges. You can't compare the fee and rates of an owner occupied loan versus a non owner occupied loan. If you can't use an owner occupied loan for an investment property what would you even compare the rate , fees, and terms. It is like saying the mortgage rate of 4% is higher than my new car loan of 0%.
Has far a trying to hunt down a portfolio lender, you only need to pick up the and call a mortgage broker and ask for a cash out no owner occupied mortgage, it's their job to find products for you.
I'm also not sure of most banks, but are you saying the B of A, Chase, Citi, and Wells are no longer doing no owner cash out or are you calling them Portfolio lender?
The main question was ideas on how to buy more with what I have in hand. I had a few ideas of my own, like what you mention private investing pool or refinance a few of my properties and start thinking about buying a small building (4 or 5 units).
I'm going to exclude talking about your primary residence. You have 736k in cash invested returning $5740 a month, of about 9.3% per year, plus appreciation, if you have 5% appreciation you are making about 14% on your cash or a little over 1.16% a month.
You are buying homes 7% below market and putting in time and money to repair them and sitting on them. Look at what you do as three businesses 1) Buys property and sells property to rental investors 2) Repairs / handyman/ construction business that gets paid for time and material 3) buys rental property and makes money every month and when sold. Unless most people, you are making money on the buy.
Even if you can make 4% on flipping a house in 2 month, you'd be making 24% per year versus 14%.
Use OPM Other Peoples Money and Buy Borrow Die. Share the wealth and make more money.
One of the main reasons why I haven't look into buying multifamily homes is because there simply aren't many at lease here in miami which is were I live. The market is mainly for condos or houses.
Why'd you need to buy a vacation home when YOU LIVE IN MIAMI??
Quote:
Originally Posted by LEFTIMAGE
67k for a condo in Miami ? I hadn't realized prices had fallen so low in recent years.
Yeah, I've seen a number of 2/2 condos for less than that. Prices in FL are dirt cheap.
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Oh, the internet.
