Need Advice (Where do I go now)??

[3dbigrigs]

Here is my situation

Here is our real estate investments so far.. in jacksonville florida

property 1      owe   67,000   appraised value   140,000     15 yr mortgage   $50 cash flow a month
property 2      owe   98,000   appraised value   145,000     30 yr mortgage   $240 cash flow a month

equity     $120,000                                                      

both have renters in them. we are temp in Indiana in transistion but are looking
to move back to FL and buy our 3rd property( as primary residence) in a better area there. The Jacksonville area is heavily over priced right now, so I was thinking of looking in foreclosures, but have no idea how that works.  I could do a refinance on  property 1 and pull out 40,000 but what is the best thing to do with that 40,000 again the houses on the market there are so overpriced. please help.

we need some advice where to go from here. If someone from Jax can talk with me that would make my day. Anyone else can give advice on here.

thanks again

John Downs

[aak5454]

if you need cash for new investments, consider a HELOC.  Bof A, Wells (and probably some of the other big gys) to NOO up to an LTV of 0.8 or 100k pretty easily.  You'll pay prime +0.5 or so, but no money out of pocket to get it; use it as you need it.

I just did one with BofA to access some equity for new projects

[JeffInCT]

You wil be in a negative cash flow if you pull equity from property 1. Is that ok?

[3dbigrigs]

You wil be in a negative cash flow if you pull equity from property 1. Is that ok?

If you see property 1 is on a 15yr mortgage I would refinance to a 30year mortgage and pull out the 40,000. So I would not be in a neg cash flow. I just got off the phone with a buddy of mine in Jax, and he said that it is crazy how much the home are selling for. Maybe I can find a realtor who finds FHA or HUD foreclosures with a little TLC and buy for primary residence. : and invest the rest of the money in a better investment area like TN or SC or TX. still looking for advice though

[shaun]

if you are interested in learning about foreclosures read Conti and Finkels book.  I'm reading it right now and it's good.

http://www.reiclub.com/products/84