All Forum Posts by: Connor Graham

 No, I don't. I had did a few offers last year but nothing is a super deal so just playing the wait game. And I am pretty good with my spending habits. However if I plan to resod ($1300) my backyard if I don't figure something out soon. 

 The home is valued at 140k, I currently owe 68k, the mortgage company said 30 vs 20y will be a .25% difference (not bad). I believe it will be around 3.7%.

That is exactly my thinking, right now I am house hacking and have a tenant in my master bedroom at $500 a month. So money right now is now issue, however who knows how long I can put up with having a roommate so I want the flexibility if things get tight down the line, say I purchased a property, etc.

Would it be worth pulling out all the money I can on my house or better off just leaving some in equity?

 I am waiting, my new loan closes in a few weeks. That's the problem, I want to get into real estate this year however it will be difficult with when I wont be able to prove income for at least another year.

I could really use some guidance right now I listen to all the pod casts and still need help! Here's my current situation-

I have a full time job (30k income)that I am ready to go part time, I also own a part time cleaning business that I want to make full time (first year in business, so no tax returns yet) (brought in 30k last year but didn't show much profit). I own a home with my brother and I am buying him out. I will have to pay him roughly 30k. Should I add this full amount to my loan, take the most out on my house which would be around $45k or what?

I have right around 40k of liquid assets, and another 10k in stocks, I could access if needed. I have this put aside for my real estate ventures. 

Question 1: see above

Question 2: Refi with a 30y loan and pay 200 extra towards principle (17 year loan at that point), or a 20year loan, no extra. Reason for 30y would be so that my debit to income ratio would be lower if I was applying for a 2nd loan.

Main thing is I won't be able to qualify for a loan without my full time income, however, I really need to go part time asap as the busy season for my biz is coming up. I just don't know what to do!

Robert, thanks for the reply, yeah, I didn't go into fine tooth details as I don't have a home in mind. 30k is one thing, 65k is another. Depending on the house, location, etc, 900-1000 is very do-able. $800 if its under 1000 sq ft. I plan to manage myself, lawn would be there issue, if mine, I would pay my business/myself to do it. 

Property tax, isn't that in my mortgage costs? Insurance, most homeowners here is around $1000, I don't know about renters..? 

I also forgot to include, I'm not looking to get major cashflow returns, but more looking to start getting in the game, as a learning experiance. I want to start building a portfolio. Right now, I don't necessarily need to have a great cap rate, anything breaking even would satisfy. Down the road might be a little different..

Thank you for posting, as it helped me think of a few things.

Critique my plan, this is what I feel fits my situation best. 

   Here's a little background on me.. 20 years old, credit is decent but lacks time (roughly 720). I bought my 1st house a year ago with my brother (84k). I rent one room out that pays 80% of mortgage. I have a FT job and a small PT business. Work roughly 50-60 hours a week I do around 40k a year. I have about 20k to invest..

Plan is simple to me, seems to easy, and that's what scares me. Help me see this through!

I want to spend (35-65k). That gets me a (Lets be honest here..) fairly run down, fixer upper in a less desirable part of my town. But a very rentable area. 

Put out around 7-10k for down payment and closing costs. 

Then do a light remodel, fresh paint all around, remodel a bath if needed, texture ceiling, drywall, wood repair, add curb appeal etc. Spending roughly 5k, more if needed.. I do all of the work myself as that is my hobby and my father is would be able to help on anything major..

Rent for around $900-$1000. After the set aside money for future repairs, should be $250-$350 in cashflow. 

My question is, what else is there. In a perfect world is it that simple? Any warnings or concerns before I proceed to find a cheap house to rent out? I am aware of the effects from lower income renters, but I don't worry as I wont have too much tied up into this property. 

Thanks