bachanon Posted July 26, 2008 Share Posted July 26, 2008 I have a 2-1-1 in Cypress Trails of Timberlane in Spring, TX. I've had the best tenants for the last five years. They are moving on next month and I'm presented with an opportunity to sell or lease again. I'd like input from the HAIF community.The property will bring 250-300 a month positive cash flow; however, I have over 20K equity I'd like to use to reduce debt and buy a new AC system for my current residence.I'm not sure, in this market, whether I should hold on to it for awhile longer and delay current needs or sell and be a bit more comfortable.I look forward to your responses. Quote Link to comment Share on other sites More sharing options...
BryanS Posted July 26, 2008 Share Posted July 26, 2008 Pull a home equity line on it, if you can. No need to sell it to get cash out... You have good cash flow on the property... Quote Link to comment Share on other sites More sharing options...
bachanon Posted July 26, 2008 Author Share Posted July 26, 2008 isn't 80% the max on home equity in texas? Quote Link to comment Share on other sites More sharing options...
RedScare Posted July 26, 2008 Share Posted July 26, 2008 Pull a home equity line on it, if you can.That would've been good advice about a year and a half ago. Quote Link to comment Share on other sites More sharing options...
TheNiche Posted July 27, 2008 Share Posted July 27, 2008 That would've been good advice about a year and a half ago.The operative words were "if you can". That's the problem with the housing market, is with the availability of mortgages...and what caused that problem was that it actually would not have necessarily been good advice about a year and a half ago, but that banks were too eager to lend anyway.If the loan is available to bachanon in the first place, the interest rates should actually be pretty attractive. Quote Link to comment Share on other sites More sharing options...
jscarbor Posted July 28, 2008 Share Posted July 28, 2008 I have a 2-1-1 in Cypress Trails of Timberlane in Spring, TX. I've had the best tenants for the last five years. They are moving on next month and I'm presented with an opportunity to sell or lease again. I'd like input from the HAIF community.The property will bring 250-300 a month positive cash flow; however, I have over 20K equity I'd like to use to reduce debt and buy a new AC system for my current residence.I'm not sure, in this market, whether I should hold on to it for awhile longer and delay current needs or sell and be a bit more comfortable.I look forward to your responses.Positive cash flow is a good thing.I might even think about selling using part to fix what needs fixing in your house and use part to try and buy another rental that can bring close to the amount cash flow you have now. Another way to look at it is, will the rental property you have now need any items replaced soon? If so its time to sell before they come up or you will have not only your current res to fix then you have this on top of it.$.02 Quote Link to comment Share on other sites More sharing options...
BryanS Posted July 29, 2008 Share Posted July 29, 2008 There is NOTHING wrong with a home equity line drawn against property that is line with personal incomes to support such properties, in a given local real estate market. No matter if you took out a loan last year, 2 years ago, 10 or 20. As long as the fundamentals are there, and are in balance, HELOCs - if used correctly - can be wonderful tools.Houston has been fortunate. Properties here have had fairly tame, fairly reasonable market values vs. other parts of the country. If you have enough equity in your property, you can borrow against 80% of it by law. You should be fine in many parts of the city where values are stable. Don't blow that equity on vacations, cars, etc. Use it for other means: emergency fund, if needed, sensible home improvements, down money for another house, etc.It would have been stupid to take out a HELOC on a piece of property in Southern California a couple of years ago. Actually... it was just as stupid to have bought any property in California back then because property values are headed straight down now - in that market... but not necessarily here. Quote Link to comment Share on other sites More sharing options...
BryanS Posted July 29, 2008 Share Posted July 29, 2008 The operative words were "if you can". That's the problem with the housing market, is with the availability of mortgages...and what caused that problem was that it actually would not have necessarily been good advice about a year and a half ago, but that banks were too eager to lend anyway.If the loan is available to bachanon in the first place, the interest rates should actually be pretty attractive.I took out a 20K HELOC... about a year and half ago... and its rate is now 4.15%, variable. Hard to beat that (vs. a credit card with a 20K limit). Less than half of it is tied up right now. I can still get the same deal, today. It all depends on an accurate, honest appraisal (the equity has to be there), and your ability to pay... Quote Link to comment Share on other sites More sharing options...
aggiez28 Posted August 24, 2008 Share Posted August 24, 2008 I took out a 20K HELOC... about a year and half ago... and its rate is now 4.15%, variable. Hard to beat that (vs. a credit card with a 20K limit). Less than half of it is tied up right now. I can still get the same deal, today. It all depends on an accurate, honest appraisal (the equity has to be there), and your ability to pay...i may be interested in buying it. could you pm me details on the house. Quote Link to comment Share on other sites More sharing options...
TonyH Posted August 24, 2008 Share Posted August 24, 2008 I'm not sure, in this market, whether I should hold on to it for awhile longer and delay current needs or sell and be a bit more comfortable.I look forward to your responses.Advertise it for both rent and sale, whichever comes first.If you sell it, bear in mind that after commissions and price negotiations the 20K in equity you think you have may be negative.If you rent it, it may be easier to refinance it (vs it being vacant). Not sure how high the LTV or CLTV values can go up to (may depend on the lender too). Quote Link to comment Share on other sites More sharing options...
bachanon Posted August 24, 2008 Author Share Posted August 24, 2008 i may be interested in buying it. could you pm me details on the house. i put an ad in haif classifieds and it should be on mls soon. i don't want to risk getting a bad tenant and have decided to sell. the house has very little work to do to be ready to sell (paint, touch up, yard, carpet). i've met with a couple of realtors (one a relative) and the conservative thing to do is to sell. haif classified think i should remove the overgrown shrubs on the right of the garage and reveal the brick and a bedroom window? also, showed the house today. potential buyer wants to bring family member back to see it this week. Quote Link to comment Share on other sites More sharing options...
20thStDad Posted August 24, 2008 Share Posted August 24, 2008 If the bush will survive a trim down to about 3 ft, or whatever gives the window some light and view, I would do it. That thing is huge! Quote Link to comment Share on other sites More sharing options...
bachanon Posted August 24, 2008 Author Share Posted August 24, 2008 actually, there is no growth behind the bush. it is simply a huge trunk. if you cut it back one foot, it will be bare. Quote Link to comment Share on other sites More sharing options...
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