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6 homes and refinance updates

October 14th, 2015 at 04:34 pm

HI all

Few updates

Found someone else to do the refinance with. the file is w the underwriter. fingers crossed. I can get either the same rate 3.25 with OUT many closing costs cover or a slightly lower rate. I SO MUCH want to be out of the refinance.. having to get a new loan every year business!!

Settling w my old property manager. his paperwork and reporting is not very good. even he was not able to justify numbers..he came to our meeting with a stack of papers and we both used calculators for 2 hours.. but we are working it out. VERY high expense numbers again this month ..but that should smooth down

November 1 starts the new property manager. Hoping and thinking that works out but scary leaving and having a change in that area..

about it for now

DID look at homes in high B areas and still lots of REO or foreclosures (some in good shape) so I CAN swap out my homes in C areas for high B areas with less differntial than I had hoped. and may be better long term..

My birthday is TOMORROW!! 45..

8 Responses to “6 homes and refinance updates”

  1. AnotherReader Says:

    Happy Birthday!

    What's the rent to price ratio in the high B areas?

  2. SecretarySaving Says:

    I hope you do something nice for yourself tomorrow! Happy Birthday!

  3. Rachael777 Says:

    I may do a separate post on this later but in general. if I get a house from a bank (9 of these homes sold in the past 6 months) I can get a nice 1000-1100 sq foot ranch for between $55-68k and rent it for $1200.. similar tax and other expenses. My homes in the C areas should sell between $45-50 (for the 2 homes on 1 lot) up to $65k.. maybe a little more for some if I got an owner occupied person.. and they rent for between $1000-$1150 right now. Again taxes and other costs are similar. SO cash flow would be very similar.. The area these high B examples are from is a very desirable sortof 'enclave' with the best schools. high school and grade in town, low-no crime and people fixing up homes. Possible issues: investors are always looking in these areas so you hvae to be quick and snap these deals up. Owner Occupied homes go for $90-$130k and up..and investor bidding has the potential to bid these up. The prices on my homes are based on what an 'investor' buyer would pay vs an owner occupant.I AM going to wait to sell until next year but very exciting to see the possibilities. Of course these deals can be snapped up which means I have to pay higher for these homes which may reduce my # of homes and cash flow. A fair estimate of work needed on these bank owned homes are between $2-5k each based on folks who have bought them but several have gotten some in move in condition. Switching to this high B area would also mean price appreciation and much easier raising rents and no need to go Section 8 at all. also some of my homes are older and more 'complex' Victorian etc and in general lend themselves to more maintenance than a ranch . I think I need to get my work heating up again (currently only working 45 hours.. was working 50, 55, 60) and get some more hours $$ banked.

  4. Livingalmostlarge Says:

    Happy Birthday! I hope you are able to celebrate. Have fun.

    These are the 6 homes you just paid off? Is it more valuable to switch entirely into 3 unit or something similar properties? More apartment style versus SFH?

  5. Rachael777 Says:

    Generally multi units have higher cap rates and can be less long term maintenance cost (roof, larger items since there is only 1 per unit.. if I buy a 6 flat. it is unlikely the roof will cost as much as 6 separate house roofs. taxes are generally lower ).. they can be more work mgmt wise (dependent on where it is). I would LOVE to get some of these $65k homes in this little area but am not opposed to apartments or 2 flats if it makes sense. Really looking long term now.. not 'get in and trade up'.. on a HIGH note. I looked online at comps and actually pricing for 2 of my homes might be higher than I had thought..lowest price in this one area is $85k and I have 2 homes there.

  6. CB in the City Says:

    Happy Birthday!

  7. snafu Says:

    Best wishes for your birthday and a terrific year!

  8. Rachael777 Says:

    thanks for all the birthday wishes guys! 45 years old yay. Smile

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