All Forum Posts by: Christin McKamey

Hello! I'm hoping to get a little advice from those more experienced than I. =) I own a small SFH that is paid off and worth around $85K. I also own my current home outright which is worth $280K. I'm thinking of either 1) buying another property (possibly multifamily), OR 2) adding another level on my husband's building (he owes $100K on it). If we go this route, we would build two 1000-square foot apartments, or a commercial space. There are other high-end apartments in the area and it's roughly 3/4 mile from a great downtown.

So first I'm wondering, which would you suggest for a semi-new investor? I'm leaning towards putting on the addition since we already own my husband's building.  I feel like it might be a good idea, but I've never been involved in any type of construction deal so I want to make sure I'm not getting in over my head.

And second, as far as financing, would you advise that I take a HELOC out on my current residence? (Sadly, I haven't been able to find a bank that will do a HELOC on an investment property). I also have about $15K cash right now and plan to have another $20K by the end of this year so I'm not sure if I should wait a bit until I have more cash on hand. (Note: I also have another $25K emergency fund but I don't want to spend that).

Any tips anyone has is GREATLY appreciated! =) Thank you. 

My husband and I have 3 small single family homes AND our personal home paid off in full. The only debt we owe is $100K on a commercial property for my husband's business. I agree with others that there is no greater feeling than the feeling of being debt-free. We get great cash flow from our rentals. But it's a personal choice that we have made together. Yes, that means we are not able to grow with real estate as quickly as others and I have to admit, sometimes I wonder if it's the right choice to move slower. But for our future plan, it works. We don't want to be moguls; we just want to live comfortably and have freedom. And when COVID hit, we were feeling pretty comfortable- which was completely opposite of where I was in 2008! I'd take debt-free any day. But yes as others have said, it depends on your goals and where you are at in life. =) 

@Andrew Postell Thanks for your thoughtful reply. I agree that business $ shouldn't be spent unless it's making you money. I guess as usual, it all comes down to the numbers and there's no one right answer.

I've been looking into the BRRRR strategy. At first it seemed a little intimidating (for the rehab part) but I feel confident in my husband's ability to help me out with this (he has A LOT of relationships with contractors, etc.). This might be the way to go. I'm definitely going to keep researching. I've already learned so much through this community already. Thank you! =)

@Jeremy Taggart thank you for your response! I like the idea of keeping a HELOC just in case I get a good deal. It looks like my bank offers 3.5% for the first 12 months but it also comes with some upfront costs, including documentation fees, appraisal fees, credit check fees, third-party fees, etc. I don't like that, but I guess it depends on how good the deal is, right?

@Alina Trigub I completely agree. I am pretty conservative by nature and definitely won't over-leverage. I hate having any amount of debt period so getting into real estate is really pushing me to shift my way of thinking.   

I guess the point I'm taking away from this is if I can find a great deal now, it's worth it. If not, I'm good to wait. I also would rather not spend ANY $ on interest (or bank fees) if it's not completely necessary (unless the deal is crazy good it offsets all of those fees). So my plan is to keep researching properties, learn as much as I can, and be patient while I'm putting more $ away. 

Thank you both for your advice. =)

Hello, I feel like my mind is going off in a million directions and just want to get some feedback from those more experienced. =) I am planning to buy my next rental property (hopefully a multifamily if I can find a good deal) in the next year and a half. I own 1 single family home free and clear that's worth around $70K. I also own my primary home outright (worth $250K) but would prefer not to take out equity on my main residence. I'm wondering- is it better to just be patient and save up $ over the next year to year and a half (I think I can come up with $50K or $60K) OR is it better to use a HELOC or equity from my rental property to use as a down payment for a new rental property NOW? I guess I'm not really understanding why people don't take more time to save up cash and if it's a good idea to move on something when I don't have the cash to do so.

I'm generally a pretty cautious person with a debt-free mindset, so I'm struggling with how much risk to take and when. Any help is greatly appreciated! =) 

Hi there! I'm Christin, from Royal Oak, Michigan (north of Detroit). I am fairly new to real estate. I bought a single family home (750 square feet) in a neighboring town (Hazel Park) for $46,000 in 2016, paid it off in 2 years and now it's worth around $70K. I am planning to save up another $50K cash in the next year, sell my property and put all of that $ down on an apartment building for around $650,000. I am taking this next year and a half to research and learn as much as I can while I'm working and saving money. I am really trying to be patient!! =) 

Side note- my husband also has 2 small single family rental houses (paid off), a building for his business (small mortgage) AND we have our house that we live in paid off as of this month! Yay! We're hoping we're in a good spot to make this happen the RIGHT way, with the least amount of risk possible. I'm really excited to learn as much as I can about real estate and meet other people with similar goals. =)