All Forum Posts by: Brad Cullen

@Evan Polaski @Joe Villeneuve - thanks for the responses. I spoke with some mortgage bankers today and our payments will go up a bit (about $50) without taking points. Even with a slight increase in the payment, we believe it still makes sense. Our two properties have been filled since we bought them and we are making $420-$480 in profit per month. We are closing on a third house in the area that will provide the same profit. If we can replicate the same numbers, which we should be able to, a $50 increase in our primary mortgage would be well worth adding two more assets and pocketing about $900 more a month. This should also set us up for success with hitting our goal of 10 units by the end of 2022 (we currently have 2, pending on that 3rd).

I am a newer real estate investor. We currently have 2 rental homes that are doing fantastic. Our primary house has an abundance of equity in it and we have 25 years left on our mortgage. I'm thinking of doing a cash out refi which looks like our monthly payment would stay the same and I'd get enough cash to buy 2 more rental units. Is there any reason we shouldn't do this? Or, is there anything I should be cautious of? Thanks for the feedback!

Hello,

My wife and I are working on purchasing our second rental house in Michigan. We are also working on setting up an LLC.

Would be it more advantageous to put us as co-owners as part of a multi-owner LLC or just have one of us as the "founder" and the other as an employee to potentially write off as a tax deduction.

We are planning on buying more units in the near future as well.

Thanks in advance for the advice!

Hello,

First time poster here - a good friend and coworker of mine introduced me to Bigger Pockets about six months ago. Purchasing our first investment home without his expertise and the information on BP would have made it a nightmare! So, big shout out to him for his help, you know who you are!

The home we purchased is in a blue collar suburb of Metro Detroit. We had a fabulous real estate agent that was able to find several houses that were already tenant occupied. The original list price was $80,000 but we ended up paying $77,500. 

The current tenant had a lease that was good through October of 2018 but we just signed a new lease last week extending him another 12 months! 

Here are the numbers that we were working with:

Purchase price - $77,500

Interest Rate - 5.25%

Month mortgage, taxes, and insurance - $579

Monthly Rent - $1,000

Monthly profit - $421

The house is in good condition. The only immediate repairs/upgrades that are needed are gutters, pitch the landscaping away from the house, and painting the garage (being required by the city for the rental inspection).  Over the next few years it will need a new roof and potentially new windows. I am handy so I plan on doing those projects myself to save some cost.

Now that we have house number one under our belts, we are excited to work on our second property! 

Feel free to reach out if you would like more information on our experience or if you have any questions!