Southern Oregon Starter

[Janis A.]

Hello to the BP Community!

Four years ago a little idea started developing: I wanted to make extra income without a second job.  I'm not sure exactly what pointed me to real estate, maybe just the general knowledge that it's an overall good investment.  My dad is into investing into the stock market, but that is something I just don't have an interest in learning about at the moment or had the cash for!  

In 2014 I was able to buy my current home with some help from my family.  Then I settled in for the long task of really reigning in my budget, improving my credit score, and paying off debt.  Through my current profession I was able to get into a loan repayment program and pay off $70k in student debt.  I transferred my credit card debt with 21+% interest into balance transfer credit cards allowing me to pay off my credit card debt without paying interest (that would later negatively effect my credit score, little did I know, due to opening new lines of credit--C'Est la Vie!)  

Besides really working on my debt, I also began researching.  I read The Book on Rental Property Investing by Brandon Turner and some other books.  Using the advice from the research, I contacted my co-worker's partner who owns around 9 properties in the Rogue Valley (where I live) and interviewed her.  By the time I interviewed her it was 2017 and I had done most of what I needed to do but wasn't sure when to actually get started.  She gave me a great push by saying, "Just starting looking at the market and getting a feel of what's out there and when a deal comes along, you'll know what it looks like."  She added that there really is no "right time" to start and you just have to do it.  And that gave me the push I needed.

Now I have just closed on a Cash Out Refiance on my current residence.  I used the cash to pay off the final bit of my credit card debt to improve my credit score even more (it's currently at a low 700) so I can qualify for lower interest rates.  I've put the remaining $17k in savings and plan to use it as a down payment for a second house.  My overall goal is to invest in single family homes, move from one to the other and build up to between 4 to 10 properties.  

I remember when I first started down this path, how far away the action phase of the plan was and now here I am!  It's so exciting!  I've done so much research and writing out excel tables and calculating, and now at the end of the year I plan on getting a second property when a deal comes along!  I do get nervous thinking about the what ifs...like what if I should use the $17k in another way, a way that would get me to more properties faster or what if this doesn't work or what if this is biting off more than I can chew.  Of course, I also think of the good what ifs...like what if it works and I can reduce the hours I work or travel more!

So here we go!