Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (5316)	9/15/2002 12:39:02 PM
From: MSI	Respond to of 306849

The crucial point: when the valuation is improved the 80% loan becomes 100% of the cost of the property. Investors know this. I keep forgetting you take the anti-investor POV, and would miss that. For example, the last property I bought with all cash for $100k since the seller was in a hurry, I upgraded for $30k, now rents for $1700/mo., I refi'd $140k, current appraisal is $300k, and LTV is 50% or better. That is what I refer to by "100% financing", since I've got 100% of the cash back out. FWIW, this was purchased two years ago, and is one of the sales coming up due to the ramp in valuations. It's hard to find many deals like this at the moment so am liquidating some things until either a correction, or we've plateaued out. If rents don't support the costs I'll concentrate on other areas.