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Old 10-28-2020, 11:50 AM
 
Location: NYC/Boston/Fairfield CT
1,853 posts, read 1,946,234 times
Reputation: 1624

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Quote:
Originally Posted by JayCT View Post
Holy cow, what a difference a day makes. According to Redfin, Fairfield County has the fastest rising real estate prices in the country. Wow! Jay

https://westfaironline.com/129410/re...prices-in-u-s/
This is great news and validates my bullish view on Fairfield County. I was buying when it was all doom and gloom about stagnating prices and the death of suburbs. I focused on Greenwich and Fairfield for rentals, did some flip deals in Stamford, Westport and Wilton. Definitely feeling great holding the Greenwich/Fairfield portfolio right now. No plans to sell, rental demand has been through the roof!

 
Old 10-28-2020, 01:36 PM
 
Location: Coastal Connecticut
21,640 posts, read 27,928,930 times
Reputation: 6692
Quote:
Originally Posted by New Englander View Post
This is great news and validates my bullish view on Fairfield County. I was buying when it was all doom and gloom about stagnating prices and the death of suburbs. I focused on Greenwich and Fairfield for rentals, did some flip deals in Stamford, Westport and Wilton. Definitely feeling great holding the Greenwich/Fairfield portfolio right now. No plans to sell, rental demand has been through the roof!
Nice one.
 
Old 10-28-2020, 02:23 PM
 
Location: USA
6,750 posts, read 3,644,980 times
Reputation: 3440
Quote:
Originally Posted by New Englander View Post
This is great news and validates my bullish view on Fairfield County. I was buying when it was all doom and gloom about stagnating prices and the death of suburbs. I focused on Greenwich and Fairfield for rentals, did some flip deals in Stamford, Westport and Wilton. Definitely feeling great holding the Greenwich/Fairfield portfolio right now. No plans to sell, rental demand has been through the roof!
Now would have been the time to sell, cash out and realize those gains. Then buy back in when the foreclosures start back up and get bullish all over again.
These HOT markets don't come around often.
 
Old 10-29-2020, 08:54 AM
 
36 posts, read 41,139 times
Reputation: 88
Quote:
Originally Posted by SteveM85 View Post
Now would have been the time to sell, cash out and realize those gains. Then buy back in when the foreclosures start back up and get bullish all over again.
These HOT markets don't come around often.

His cash flow from his original purchase is way too valuable IMO to sell them now (keep those things forever dude). Theres nothing anymore you can buy in those areas thats not an off-market pit that will rent for anything resembling a decent return. With realtor commissions, excise taxes, hes looking at a 7%+ haircut. He's also going to pay cap gains unless he 1031's them into something bigger, which is not smart now given there might not be anything to buy within the 45 day window.



He can always take some gains by refinancing up to a comfortable amount loan-to-value, since the appraisal comps should be nice and juicy from this summer. Win/win - keep the cash flowing asset and take some profits without any of the sales costs and taxes (he's obv going to pay closing costs to refinance). I'm sure he knows all of this already .
 
Old 10-29-2020, 10:52 AM
 
Location: USA
6,750 posts, read 3,644,980 times
Reputation: 3440
Quote:
Originally Posted by esm1983 View Post
His cash flow from his original purchase is way too valuable IMO to sell them now (keep those things forever dude). Theres nothing anymore you can buy in those areas thats not an off-market pit that will rent for anything resembling a decent return. With realtor commissions, excise taxes, hes looking at a 7%+ haircut. He's also going to pay cap gains unless he 1031's them into something bigger, which is not smart now given there might not be anything to buy within the 45 day window.



He can always take some gains by refinancing up to a comfortable amount loan-to-value, since the appraisal comps should be nice and juicy from this summer. Win/win - keep the cash flowing asset and take some profits without any of the sales costs and taxes (he's obv going to pay closing costs to refinance). I'm sure he knows all of this already .
Great work, well done.
I didn't get deep into the finances but yes, the net gain after haircuts would need to be worth it. Of course, absolutely. I've been there too.
 
Old 10-29-2020, 02:19 PM
 
16 posts, read 19,212 times
Reputation: 14
Hello all - first time, long time.

Quick heloc question to those with knowledge... Closed on a new home in June (7 month short sale fight) but got it for a steal. Comps today are going for upwards of 70% more than my purchase. What would be the negatives with grabbing a heloc based on the today's value of the home? Would love to put some money back in to rehab, wife's business, investment property etc? Any advise would be much appreciated.

It's worth noting I am a believer residential prices are severely inflated due to the perceived escape from NY and I don't believe my house is 70% greater now...but if a bank wants to lend me that then why not? Also not interested in flipping...two young kids, ready to settle for a few years.
 
Old 10-29-2020, 03:24 PM
 
Location: Danbury CT covering all of Fairfield County
2,626 posts, read 7,410,950 times
Reputation: 1372
Quote:
Originally Posted by AD232 View Post
Hello all - first time, long time.

Quick heloc question to those with knowledge... Closed on a new home in June (7 month short sale fight) but got it for a steal. Comps today are going for upwards of 70% more than my purchase. What would be the negatives with grabbing a heloc based on the today's value of the home? Would love to put some money back in to rehab, wife's business, investment property etc? Any advise would be much appreciated.

It's worth noting I am a believer residential prices are severely inflated due to the perceived escape from NY and I don't believe my house is 70% greater now...but if a bank wants to lend me that then why not? Also not interested in flipping...two young kids, ready to settle for a few years.
Don't go crazy taking out $. Invest in a moderate renovation to bring closer to market standards and business if she is doing well. Maybe put money in a low risk fund.
 
Old 10-29-2020, 03:50 PM
 
Location: NYC/Boston/Fairfield CT
1,853 posts, read 1,946,234 times
Reputation: 1624
Quote:
Originally Posted by Stylo View Post
Nice one.
Thanks!
 
Old 10-29-2020, 03:52 PM
 
Location: NYC/Boston/Fairfield CT
1,853 posts, read 1,946,234 times
Reputation: 1624
Quote:
Originally Posted by SteveM85 View Post
Now would have been the time to sell, cash out and realize those gains. Then buy back in when the foreclosures start back up and get bullish all over again.
These HOT markets don't come around often.
I understand where you are coming from but holding these properties forever unless I see some outrageously high return (3X-4X). I am in it well past this recession.
 
Old 10-29-2020, 03:57 PM
 
Location: NYC/Boston/Fairfield CT
1,853 posts, read 1,946,234 times
Reputation: 1624
Quote:
Originally Posted by esm1983 View Post
His cash flow from his original purchase is way too valuable IMO to sell them now (keep those things forever dude). Theres nothing anymore you can buy in those areas thats not an off-market pit that will rent for anything resembling a decent return. With realtor commissions, excise taxes, hes looking at a 7%+ haircut. He's also going to pay cap gains unless he 1031's them into something bigger, which is not smart now given there might not be anything to buy within the 45 day window.



He can always take some gains by refinancing up to a comfortable amount loan-to-value, since the appraisal comps should be nice and juicy from this summer. Win/win - keep the cash flowing asset and take some profits without any of the sales costs and taxes (he's obv going to pay closing costs to refinance). I'm sure he knows all of this already .
This is spot on. This post should be pinned for those who looking to buy and hold real estate. I have a healthy amount of equity and always like to keep refinancing under consideration. Right now, I am just enjoying the cash flow
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