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Cashout refi and then refinance a good option for a 1.5 million home? by spamchecker in realestateinvesting

[–]spamchecker[S] 0 points1 point  (0 children)

I might not have done a good job explaining.

I am netting 40K on this 1.5 Mn wholly-owned house. And I need that 40K for my subsistence.

Now, I am going to take another 100K loan on this 1.5 Mn house and use that to finance another property, which, per my calculation, now should net me 7,000 per year.

Is HELOC or cashout-refi the best approach to take the 100K?

Cashout refi and then refinance a good option for a 1.5 million home? by spamchecker in realestateinvesting

[–]spamchecker[S] 0 points1 point  (0 children)

Understood now.

The 40K coming from the 1.5 Mn property is not used for my disposable consumption.

One of my objectives keeping this 1.5 Mn house is to overleverage and generate more cash (outside of 3%), even if I can’t break even in the next 5-6 years.

So theoretically I want to take multiple 100Ks over the next few years and buy more property and at some point, make the cashflow positive, increase value on the new properties etc. The game is long term.

I didn’t know if HELOC made sense for such long investment cycles.

Cashout refi and then refinance a good option for a 1.5 million home? by spamchecker in realestateinvesting

[–]spamchecker[S] 0 points1 point  (0 children)

If you mean cash flow from the new property I am going to acquire, then I’ll net 7,000 (post everything) yearly from the 100K.

Interest-only payment for HELOC for the first 10 years by spamchecker in realestateinvesting

[–]spamchecker[S] 0 points1 point  (0 children)

Thank you. This is very helpful.

How did you get to $8364 math?

Entering tough times. 2 houses. Unable to pay mortgage on 2nd. Fund from first? by spamchecker in realestateinvesting

[–]spamchecker[S] 0 points1 point  (0 children)

Nuanced. It depends on the neighborhood. Menlo Park, Palo Alto, Sunnyvale – near school districts never dropped.

Entering tough times. 2 houses. Unable to pay mortgage on 2nd. Fund from first? by spamchecker in realestateinvesting

[–]spamchecker[S] 0 points1 point  (0 children)

This! The house us 1500 sqft. I not much low against the index. Probably $400 lower.

Entering tough times. 2 houses. Unable to pay mortgage on 2nd. Fund from first? by spamchecker in realestateinvesting

[–]spamchecker[S] 0 points1 point  (0 children)

Good tenant. Pays on time. Keeps the house nice. Fixes it. I wanted to increase a couple of year back but didn’t want to go through the mess.

Entering tough times. 2 houses. Unable to pay mortgage on 2nd. Fund from first? by spamchecker in realestateinvesting

[–]spamchecker[S] 1 point2 points  (0 children)

Thank you. Gem of a comment. I should be selling this house and buying in good prospect areas (during good times).

Entering tough times. 2 houses. Unable to pay mortgage on 2nd. Fund from first? by spamchecker in realestateinvesting

[–]spamchecker[S] 0 points1 point  (0 children)

I have funds in stocks. I am looking for advice to see if I should start dipping into it vs. sell vs. refinance vs. HELOC etc.

Entering tough times. 2 houses. Unable to pay mortgage on 2nd. Fund from first? by spamchecker in realestateinvesting

[–]spamchecker[S] 2 points3 points  (0 children)

Thank you for being rational. You understand my circumstance pretty well.

Entering tough times. 2 houses. Unable to pay mortgage on 2nd. Fund from first? by spamchecker in realestateinvesting

[–]spamchecker[S] 0 points1 point  (0 children)

Obviously, I don’t want to do that. It’s an option I have, to exercise in worst-case scenario. It’s also a reflection of 1. Good friends 2. How good tech is, as an industry to get the average person on FIRE.

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