All Forum Posts by: Bernie Tobin

Well done!  Congrats!

That makes sense.  I am just worried about getting a loan for my own home if my debt to income is too high.  I do have a job and make pretty decent money, so I suppose if I do not get "too" leveraged, I should be okay.

After spending a ton of time on this site and listening to a bunch of podcasts, I am finally taking action.  I've got a partner with experience in rehab/holding/flipping and today I began the process of getting a home equity loan. 

We are putting together a business plan and looking at properties.  We found a nice auction single family that we will be bidding on in the next month or two.  

I know that leverage is good, but as part of my plan, I want to know when to pay off loans.  Do I try to do this as I go?  Maybe buy a couple properties, then throw money at the loans?  Let the entire loan run it's coarse?

The terms of the loan I am looking at to get me started are interest only for first 5 years at a variable rate (3.75 to start), and I believe amortization over the following 10 years, for a total of 15.  

Keeping in mind that in the next few years, my wife and I will want to buy a more permanent home (currently house hacking a duplex), what should be my plan for payoff?

Also, the duplex I am living in has appreciated in value (about $50k more than I paid).

I am considering taking a home equity loan (a local credit union has a 3% on this), and using the money to purchase another rental.  Would I just build the expense of the loan into my "do it or not" equation?

I have knocked out all of the larger interest rate loans and the highest is around %3.6, I believe. This is a good point you make about the interest rates... I'm sure I can get a better ROI on a good investment property (vacation or duplex).

Thank you, both!

After doing some research and listening to a great podcast from this site, I am thinking the vacation rental may be a good option for me.

Here is my situation, I am wondering if anyone has advise or thoughts on this.

• My wife and I are currently paying off student loans
• I live in Michigan at make about $90k a year
• We are owner-occupiers with a duplex (about $100k left to pay)
• I reached out to my mortgage guy for pre-financing
• What I'm looking at:  A cottage on a lake, near a ski resort, and casino

Any advice is welcome... I am nervous about taking out a large loan to begin investing but I realize that there are no rewards without risk.

Hello,

I've owned a duplex for about 3 years and my wife and I live in one half.  We are working to pay off our student loans, but would like to buy a house and more rentals.

My current strategy is to pay off all loans, save for a down payment for a house, buy a house, save for a down payment on my next property.  Thoughts?