All Forum Posts by: Chris Mills

I would wait and not risk spooking the bank on your personal residence. They don't like to see a lot of drastic changes and activity they're not familiar with. You want your file on their desk to be as plain, boring, and polished as possible to ensure things go smoothly and possibly improve your rate. Once you're closed, have at it.

I'd vote for option 2, the bird in the hand. Anytime you can net healthy profit and remove unknowns and liability that's a win in my book.

Hi Colton,

Historically speaking, 3-4 weeks is a very short time span to see really huge jumps. It's not impossible though. At the same time, mortgage brokers will tell you rates can fluctuate day to day, week to week. I think it's really a matter of how sensitive you are to those fluctuations. Rates are going to go up, it's just a matter of how quickly. I heard people two years ago saying we'd be at double digit rates right now. No one knows for sure.

This stinks @Sabine French. Sorry. If you stay in this game long enough, you'll take your hits. We can learn from our hits, and keep them from happening again. We can also learn from others, so thank you for sharing. Also, like @Steve Shafer said, with time this will just be a memory. You got this. Just keep moving forward.

@Jack Seiden Makes a great point. I would actually say if you are newer to the game it would be better to start outside the city to get your legs, then move into the city. Investing in the suburbs can be a lot more forgiving.

Hi @Reah Neves! Congratulations on taking this step. Having a friend in the area is always ideal investing out of state. A great property manager is everything. Even if you land a great deal, a bad property manager will sink your investment. They'll also know all your local landlord tenant laws. I'd put most of my effort into researching that, once you've nailed down the region you want to be in. Build property management into your models when forecasting. For most, self-management out of state on the first property is way too big of a leap.

@Bhairav Bhavsar This is a pretty straightforward deal. Is it a good deal for you? That's the question. If you stick with that cap rate, and make an offer based on your calculated NOI, can you live with that? If all you as the new owner can do is raise rents, you're stuck, which can be a dream or a nightmare. If rents don't go up, or go up much, are you good with it?

There are private money houses that specialize in this. That may be the way to go. We do that here on the east coast. If you find private money in your area and they're good, they should be able to lay all that out for you.

@Travis Schmidt I've gone the attorney route like @Dan Travieso and I've done the virtual office thing too. They both worked out well. You've got options. 

I agree with you about Chicago. Baltimore near me is similar. In both cases, you really have to know the area or have someone trusted who does. I like the surrounding suburbs as well of those cities. 

I wouldn't write of Indianapolis. I think it has shown relative stability over the years. 

You may prove correct about the heat, but I think I still like the southeast long-term, all things considered.