All Forum Posts by: Account Closed

Hey Geri Symons I'm seriously thinking about jumping into the Pueblo market later this year. Mind sharing what it is that you weren't expecting?

@Cory LaChance

It's about equity. The more equity you have, the more you can leverage. It does not have to be free & clear.

I doubt a single LOC could be tied to multiple properties but call around. Every institution has their own criteria.

@Duane Johnson

I'm a total newbie and can't addresss your question, but this sounds like it might be a flip. If that's the case, my understanding is that the 70% rule is a good guideline.

($389k x .7) - $50k = $222k max purchase price

You probably know what your doing though so disregard this if it doesn't make sense.

Chad Clement I have great credit as well and recently found 4.75 variable for 80% LTV (5.25 for 90). The rate can be fixed after close for 1 point higher. No fees/closing costs if the LOC is under $100k. Payments are interest only during 10-yr draw period. I called about a dozen banks & credit unions and this was the best I could find in the Denver area.

Dan Bryskin Really appreciate the perspective, Dan. I'm hoping to get started very soon and looking forward to seeing how much different the journey looks a few years (or even months) down the road. Thanks for the encouragement!

@John Jacobus

Thank you so much for the input and for taking my post seriously. Yes, I absolutely meant to say "# of Units".

I'm printing out your post so that I can comb through all the details and really understand it.  I wasn't expecting anything near this helpful so this will definitely help me to refine the plan.

Thanks also for the encouragement. It's great to know that the end goal is doable.

Hey BP

I'm in the early education/planning phase of my REI journey, laying out a road map to financial freedom, and I'd really like your input.

I am leaning heavily toward a focus on multi-family rentals and want to see what you think about the 10-year plan outlined below.

Here are the assumptions:

• The goal is to have a passive income of $150K/year by 2026.
• I'm assuming $150 of cash flow/unit/month after the 50% Rule (e.g. $1200 rent / 2 = $600 - $450 expenses = $150)
• I've got $40K available for downpayments this year. Closing costs, inspections, reserves, attorney's fees, etc. would be above and beyond this and are not pertinent to this calculation.
• I think I can come up with another $40K for downpayments in 2018. In 2019, I would need $80K for downpayments and that number would go up in the years to follow. I don't yet know where the $80K would come from, but imagine that some of it would get pulled out of the 4 properties that I own by that time.
• The $100K purchase price is an average and that could certainly go up over the next 10 years.

Here are my questions:

1. Do you see any glaring problems with the plan or the assumptions?
2. If you had $40K and were working a full-time job for the foreseeable future, how would you invest it today?

Thanks in advance for your input!

I'm in Colorado and recently called about a dozen banks and credit unions about HELOCs. The best I found was 90% LTV with no fees or closing costs.

I've got a friend who might be able to help you. He is a wealth strategist and is actually the person who suggested we get involved in real estate investing. PM me and I'll give you his contact info.