Skip to main content

Looking for portfolio advice

Just looking for another perspective on my real estate portfolio. I'm fairly risk averse and think I'm in a pretty good situation but I've used up a good portion of cash reserves to buy my last property.

Here are the details on each property: 1. Primary home. $570k value. $285k mortgage @1600 a month. Also has outstanding HELOC just used to buy rental at $145k (10% interest rate).

  1. Rental. $320k value. $160k mortgage @ 900 a month. $1500 rental income.

  2. Rental by the room. $580k value. $410k mortgage and payments of $2100 a month (+$1k in utilities). $5300 rental income.

  3. Identical room rental with a partner. $580k value. Mortgage of $2500 a month. $725/mo payments to partner. $1k utilities. $5300 rental income.

  4. Rental with partner. $275k value. No mortgage but would owe partner $205k upon all. Pay partner $870 a month. Rents for $1500 a month.

  5. Rental. $390k value. Owe $205k (6.25% interest). Payments of $1650 a month. $2050 in income.

  6. New purchase (with heloc). Purchase price of $205k. Renovating for $20k. Value should be about $270k to $290k. Will rent for $2k a month. Expenses are $400 a month but currently no mortgage.

My thoughts are to aggressively pay the heloc off over the next year and just leave it without a mortgage until a more opportune time. The heloc has a high rate but refinancing would cost an extra $5k+. The only other property that has a high rate is property 6, but it's stable.

Wondering what other options there might be on this. We don't need any of the income the properties generate and with our regular jobs I'm confident we can put $10k a month toward paying off the heloc with a little more some months. The only other consideration I have is that I don't think the interest in the heloc is tax deductible since it originated from my primary?

I don't really think we need any additional properties but I want to eventually replace the room rentals for apartments.

Looking for any suggestions

submitted by /u/obie1cajoby
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/18lxc6o/looking_for_portfolio_advice/
Labels:

Comments

Post a Comment

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more

Obtaining a real estate license as a hobby?

Hello, I am 24 years old - 2 years out of college and I have my main job. I was looking to get a real estate license (in California if location matters) as a hobby/for fun since I like real estate ever since I was in high school. In the past 2 years, I would go to open house in the weekends to look at homes for fun. I don’t plan to practice real estate full time as I have my main job but I am curious are there any benefits to this? In the future, I plan to own multiple properties and have rentals, so I was wondering if getting a real estate license can help me with it? Thanks submitted by /u/AlohVera [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1f0qx9i/obtaining_a_real_estate_license_as_a_hobby/
Post a Comment
Read more

Advice? Moved out of my primary residence and now renting

I moved out of the house I own in August 2021, I lived there for 8 years, I have been renting an apartment the past 3 years and renting out my house. My current tenant is moving out in September. I seem to have just missed the living 2 years out of 5 years rule for being exempt from capital gains tax and my house being a primary home. Any advice on what the best thing to do would be moving forward? Continue to rent out my house? I'm happy with my rental, but wouldn't mind buying another property down the road. I could sell my house down the road and try to do a 1031 exchange? Moving back in my house isn't ideal because it's an hour away from where I currently live. I could take a HELOC perhaps and try to buy another property and continue renting for the long term? I do have a 2.4% mortgage rate on the house so I don't mind keeping it for a while. Thanks for everyone's advice. submitted by /u/Ok-Top-7859 [link] [comments] source https://www.reddit.co...
Post a Comment
Read more