All Forum Posts by: Brendan J.

Welcome Tyler. I assume you're a rising Junior with at least 2 years left at school in SC?

What kind of resources do you have available? There can be some low down-payment (3.5%) funding sources that will give you a loan if you have decent credit.

If I'm you and could do my Junior year at school over again; I'd find an inexpensive, but solid, multi-family property (2-4 units) close to campus. Live in one unit, get your buddies or other classmates to rent the rest of the building out and make them pay your mortgage, and maybe even cashflow it for you. Force yourself to still save the money that you would have paid for rent and hopefully you'll be coming out well ahead. You can even hold on to the property after you graduate as your first true rental.

Best of luck!

On the bright side Navi, it sounds like if you get the house for $190K per the verbal agreement, you'll be able to cover this transfer taxes plus a bit extra. When do you sign?

Please don't take this the wrong way, but this quote may have exposed the real problem here.

You're asking if you should force this house into a rental position you don't like, or sell it at a huge loss because you want to move to a bigger, nicer home? Unless you have 8 kids, do you really need to improve upon 4,200sf right now with this situation unfolding?

Prudence tells me that you should stay in the home you have and work on getting the debt paid off. You may have reached for this house before you were ready, and you're looking at moving up again? Seriously Brian, these are the type of situations that 100,000 members of this forum are trying to avoid and you're about to do it again.

Again, I'm not throwing stones or making any moral calls here, I'm just presenting the 3rd option that you haven't, if you're really looking for a solution to this, "Dilemma."

Welcome to BP Matt! We are glad to have you and wish you a long and fruitful time here with us.

Frank, perhaps there are more things you can do to increase exposure (which others can help with). But I would have to say that you haven't given it enough time yet. It sounds like you just posted the ads yesterday. I would think that on a Wednesday night, you may have not gotten the looks that you will receive going into the weekend (when most people have much more time).

Post it to as many sights as you can, and re-evaluate on Sunday. Don't lower your rates just yet...

Kevin, you're very right, it's hard to pass up cheap money like that. If you have the means to pay back a HELOC in full if it's called at a moments notice (you can cash out investments if need be), you're in fine shape.

I get worried for some of these investors that max a $100,000 HELOC on their primary and use it for long-term investments that are not liquid at all. If the bank wants the money back tomorrow, there will be some awake nights for sure.

Welcome again and good to have you.

Welcome Brian! We're glad to have you and I hope that BP can be a great source of wisdom for you like it has been for so many others.

Perfect Josh, just wanted to make sure. You remember highschool though, no work shown, no credit given!! Haha.

Ryan welcome to Bigger Pockets, and welcome to Knoxville as well! You'll find BP to be a tremendous resource and look forward to hearing your thoughts moving forward.

Josh, you're correct about the taxes probably going down this year with the lower assessment on the property. However, I want to make sure you have used the 50% formula correctly.

50% formula says that over a period of time, expenses should equal 50% of market rents. $650/2 = $325. Expenses would include everything except the principal and interest on the loan (even taxes, insurance, and property management).

Calculating your loan of $21,600, 5.45% interest, @ 15 years is $175 (principal and interest).

$325-$175 = $150

We arrived at the same number, but I think we've done it a different way that should help you evaluate others deals in the future.