Newbie Plan. Thoughts?

[Stephen Fleming]

I currently own a home but I’m looking to move and rent out my current home. My mortgage rate is 2.875% so I don’t plan on refi to get equity out. I have 100k in equity in this house and plan on using a home equity loan to get about 65k in equity out as a down payment for my next primary residence. New primary mortgage will be about $2500 a month, old house that I will rent out long term is $1000 a month. Plus about $600 a month for Home equity loan payment. I expect to get $2,200 a month for rent and will manage it myself. That takes roughly $600 a month off of my new mortgage. 

I also have money saved up for a down payment on another property. I’d like to get started with a Airbnb/short term rental in northern Michigan. I have about $20k saved up there but I do have a partner who is also willing to go in 50%

what are your thoughts??  Good plan?  Things to look out for?  Things you would do differently?  Also if there are other investors in the Detroit metro area looking to work together I’m interested in at least having a conversation!!!

[Travis Timmons]

Agree with @Caleb Brown - go slow and do 1 thing at a time. I don't know how much you like your current home, but don't let a low rate convince you to keep a property that is not a great rental. There are also few things better than tax free cash if you want to sell it and move out. We have a handful of rentals, and none of them pencil out exactly like we thought they would. Some are better and some are worse than we expected. The pro-forma estimates just don't  provide enough information to plan long term. Do 1 thing, stabilize the property, and then move on to the next.

On the short term rental, I would encourage you not to partner. Getting a short term rental to market is death by a thousands cuts. You spend so much money before you make a dime of booking revenue. It's really stressful, slow, and expensive. Having a partner that is also new and does not know what to expect is a recipe for disagreement, strife, unmet expectations, etc. I do understand that not partnering pushes back your timeline substantially...I'm in the slow and steady wins the race and stay small, own it all camp, though.