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Updated over 7 years ago,

User Stats

18
Posts
4
Votes
Jonathan Larkin
  • Saint Paul, MN
4
Votes |
18
Posts

First investments - what would you do

Jonathan Larkin
  • Saint Paul, MN
Posted
I have referenced these forums for some great information in the past. I finally registered and look forward to learning more on a continual basis. I'm interested in buying some REI properties in the Minnesota area.I have keep my eye on the market for the past 2 years and viewed about 80 properties in the St. Paul area in that time. I do feel I have a decent understanding of this market. My wife and I are getting a HELOC right now and we have savings also. Initial purchase/purchases would be out of savings then HELOC. We have decent credit, both are in 730's. Mortgage broker can get me into mortgage packages on multi families 4.25%-5% (depends on down payment) for 30 year fixed. We are in our late 20's so we are in a good spot to start investing. I would like to use my cash and the HELOC to pick up a few properties, pay down HELOC and purchase more on HELOC and future savings. Based on this plan-system, I'm starting to think I'm better off looking outside of the cities. In smaller towns like St. Cloud, Rochester, Duluth, Mankato and other cities of decent size. I realize I may not see the equity growth long term but these location seem to have higher cash flow because the properties are less expensive and they still have decent rents. I may be able to purchase 1 or 2 multi family's in the cities vs 2-4 in rural markets. In other words I have a fixed amount of money I can put into the initial properties (not comfortable saying the exact amount but this should give you a decent understanding). I understand the issues with owning property in other cities than you live. If you were in my situation what approach would you take? How would you start you REI career if you did it again and we're in my shoes?I'm open to ideas/approaches to take. I'm not looking for specific information on the Minnesota market, any experience in situations similar is greatly appreciated. Thanks for you help!

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