All Forum Posts by: Adeva Edobor

@Tom B. Like @Dorian Guin said, it's a matter of your utilization. If you get a HELOC try to get way more than you need then use just a little if it. The lender can't tell how it'll affect your score. It looks risky to the credit bureaus if you have access to a certain amount and you use most of it. To them, It means you are in a tight situation and need as much as you can get. On the other hand, if you have a lot and you use a little of it, you look like you have everything under control financially.

@Courtney Rollins I agree with @Jared Forman about checking out the rest of the property because the previous owner has already shown negligence by allowing that degree of damage. Also, I think you should look at alternative short term rentals. Airbnb may not be the most cost effective since you are not too excited about renting. You will most likely pay more than you would with a traditional month to month rental.

Also any concern with structure in a building is a huge red flag. For your first time, I wouldn't recommend trying to deal with that.

@Matthew Paul @Tj M. @christian The bank is the best partner you can have. A partner that after giving you money never talks to you again, never tries to tell you how to run your business and never gives unsolicited advice.

Think about this scenario. $30k property 25%down finance $22,500 @ 5%. In 15 years, you will have paid $9,528 in interest payments.

If you put the $22,500 (because you had the cash to begin with) into the s&p500 for 15 years assuming a super conservative rate of 5% (since most experts say it's about 9% or 10% before inflation) you will make an extra $25,058

Would you rather make $25,058 or save $9,528

Or better yet, stay with real estate and invest the $22,500 into 3 other properties and let the bank carry the rest of the cost. In 15 years, you will have 4 paid off properties with the extra 3 only costing you $12,704 each.

@Matthew Paul Not if you think of the bank as your partner who's bringing more money to the table and the mortgage as your attempt to buy out the partner. Having this wealthy partner gives you access to control more assets within a short period than you can by yourself.

@Tj M. Don't worry too much about interest saved. Remember the tenant is paying it. Not you.

@Tj M. Looks like you want to invest for about 14 years. Try to acquire as much as you can with 15 yr mortgages. You would be about done by quitting time. By then you'll have a good idea of which ones are performing and which ones are not. Then you sell the problem ones and chill with what's left.

@Mark Coleman Sorry for the late response. I just saw this. Yes I meant refinance the property with a traditional mortgage to pay back the equity line. That allows you reuse the line. Think of the equity line like a credit card. You use it, pay it off and go shopping again.

@Tj M. I think the answer is relative to the situation. If you are just starting out and you have many years left in your real estate career, leverage as much as you can (safely) to acquire as much as you can. If you are closer to retirement or the end of your real estate journey, focus on paying off the properties to cash flow as much as you can.

@David Waddleton As someone who just bought my first rental recently, I think the cash flow is too low to consider this a deal. I would recommend that you be patient and keep shopping. You can definitely find something better. You're going to make mistakes on your first deal but this is too much of a risk.

@Lance Bricca I think you need to establish some credit and save some money. During that time, study Real estate investing. (Watch videos, read books and talk to people) Spend some time analyzing deals and scenarios. Every so often, you'll find the perfect deal. However, don't rush in. There'll always be another deal. Figure out how you plan to invest: wholesale, flip, buy n hold etc and when you do, stick to it