Hello all and thanks in advance for your thoughts, help, time and consideration!
I'm book smart, going on street smart... Here's an incomplete of the books I have tackled this year (which also marks the beginning of my venture into the wonderful world of REI).
(No order)
Build a Rental Property Empire - Mark Ferguson
The Millionaire Next Door - Thomas Stanley
The Book On Tax Strategies for the Savvy Real Estate Investor - Brandon Turner
The Book on Investing In Real Estate with No (and Low) Money Down - Brandon Turner
Rich Dad Poor Dad, Cashflow Quadrant, and Guide to Investing - Robert Kiyosaki
Crushing it in Apartments and Commercial Real Estate - Brian Murray
Profit First - Mike Michalawicz
From Janitor to Multi-Millionaire - Mike Weese
Tax-Free Wealth - Garrett Sutton
Start Your Own Corporation - Garrett Sutton
If there are any others that you think I MUST read before buy my first investment property, I'll tackle it in a heartbeat.
Here's my deal:
I have a comfy job that gives me some spare time and money; thus I've got to start investing before I spend it all. I also wouldn't mind that ever elusive idea of early retirement.
I am an investor by nature. Before I read about REI or even heard of house hacking, I had already purchased a huge house that is paid for by my tenants. Details on that below.
Here's my current dilemma:
In one month I'm going to have the following:
1. Real Estate License (not looking to be an agent, just an investor for now)
2. HELOC of $20-30k on my primary residence
3. Pre-approval for a new home loan to buy my first investment property
My first question to BP members:
"If I can't find a great deal with seller financing or a lease-option, is getting a conventional loan with a HELOC as the down payment the next best way to go? Or, is there a better option that I'm overlooking?"
The HELOC will be 1.99% interest for the first 4 years. I can pay this off before the rate goes up to 6%. I don't know what the details will be on my new home loan. I will have to use the HELOC as my downpayment, as I have been putting all my cash into paying off my primary residence.
Primary Residence:
3,000 sqft - bought $269k
3 rentable rooms, $700 each, usually only rent 2 at a time
my room - no rent
Mortgage - $1152
Rent collected - estimate $16k for year 1
I live for free and make a little as well. I also depreciate the rented space, common areas, and my home office.
I'm sure I'm probably not the first person to ask some of these questions... If you know of an article or post that solves my problem, a link will definitely be appreciated.
I'm greatly looking forward to any and all feedback. If you are have a real estate license and are a REI, please message me as I have several other questions that I'd really like some help with as well.
Thank you all so much!
-Cliff
