All Forum Posts by: Account Closed

@Mindy Jensen I'm sure I will become more comfortable with it as I go through the process and learn more. If I do this right even if I have to take on more leverage other people (tenants) will be paying for it. 

Wish it were so with my student loans.... ha!

@Michaela G. Yes, you are correct! Instead of paying rent to someone else I'm "paying rent" to myself and that puts me in the green!

Hmmm, it would take me 10 years to save that much.

The way I see it- I want my money to work FOR me. If I'm paying rent at $450 a month- that's $5400 a year x10 years = $54,000 just to have a roof over my head, not including utilities, etc. Right now I'm in the middle of buying my first multifamily property with an FHA loan- I won't be making a huge profit on it but the rent I collect will cover my mortgage + a little extra and I can live for free so the money I would have spent on rent I can now save towards the next property. Yes there will be periods of vacancy where I will have to pay the mortgage out of pocket but even if I end up paying the entire mortgage for a year that's money that goes towards equity so I don't consider it a loss.

@Matt Faix Thank you! Good advice.

@Bart H. Thank you for the input. Its nice to know that other people have been successful going the route that I'm going!! 

@Michael Boyer Thank you! and thank you for the advice! I'm certainly not in a big hurry- I want to do this the right way which isn't necessarily the fastest way. (I do listen to the Dave Ramsey cd's too! He cracks me up.)

I'm buying my first property (finally!) with a FHA loan, it's a BEAUTIFUL three unit house in a good neighborhood with a strong rental market, meets all my requirements (off street parking, good schools, quiet street, good aesthetics, etc,) and it's fully updated- needs nothing! This house isn't going to be a huge money maker right now because I will be occupying one of the units, but I will come out a little ahead and be able to live for free so I can start building equity and the money I save from not having to pay rent or a mortgage will allow me to start saving for my next property.

So my question is- whats the best strategy to acquire my second property? Should I sink extra money on the mortgage for now, refinance to a lower rate and use a home equity loan to as a down payment on the next house? Should I just keep the mortgage as is and start banking every penny I have into a savings account? With my current job and 'living for free', I should be able to save around $1-1.2k a month and if I get a second job I could potentially save bank another $1k. 

I really don't want to use a third party to borrow the down payment from- the less people I owe money to the more comfortable I will be, I would much rather use my own cash/equity.

Any advice is appreciated! Thank you!

If you don't have a contract that's locking you in then just write a very polite and professional letter thanking them for all their hard work but also stating your intention to terminate your business with them after x number of days. Or better yet, if both companies are good, write a letter to both of them explaining your intention to consolidate and let them know you are accepting bids for the job. You might get a better deal that way. 

It's not personal, it's business. If they are professionals they will understand.

This is the company I'm looking at as my backup- Crown Real Estate

http://www.pittsburghpropertymanagers.com

(I have a friend who used to work for them and if she's willing she is my first choice for property manager- she's amazing!)

They keep telling me I can't be approved because I'm not getting 40 hours a week. Mind you in the last three weeks I worked 32, then 40 then 48 but the week before that was only 24. My hours fluctuate but I'm making good money and my bills are getting paid. My current debt to income ratio is only 6%. Yes I have student loans but my car is paid off. I have a credit card that I'm working to pay off- its around 24% utilization. 

I'm desperately trying to find a 40 hour/week job but I keep experiencing setbacks- like my school misspelled my name when they submitted it to the state board of nursing TWICE. (Idiots.) It was a HUGE deal to get it sorted out.

I'm ready to pull my hair out.