All Forum Posts by: Craig Jeppesen

what I would do is purchase a duplex, triplex or 4plex depending what you can afford and move in one unit. If you get a duplex and you are paying $700 in rent, your $700 in positive cash flow becomes $1400, probably $1600 for a triplex and $1800 for a 4plex. then you can save up another down payment and do it again. You do this a few times and save up some money for reserves and you will be cash flowing close to or more than your job. My cash flow numbers are just approximation; could be more could be less and I have no idea what you pay in rent or what you can earn on rent. It is just an example of how you can earn more with RE. Run the numbers with an FHA 3.5% down loan and see for yourself. Once you start cashflowing jump to a job or start a business that you love and keep investing part of your monthly cash flow. Spend a few years working hard and saving as much as you can and you will be in a much better financial situation and your wife will be onboard.

Congrats on creating $60 k of wealth from $10 k. Maybe you can’t get all the money back in a refi, but you still have the wealth and a pretty good cash on cash return on your investment. I would say that is a success especially in today’s market. Also I didn’t look at all the pics the the few I did looked really nice. Nice work.

Do you already own the lot? If so use it for a down payment for a construction loan. you probably want to stay away on a hard money loan. They are short term and usually for flips.

Yeah there is no need to post your listing here for an Idaho listing. The market is hot in BOISE and Pocatello right now. What type of property are you listing and what city? I invest in East Idaho.

yeah, life can get a little busy sometimes. sometimes your job requires more time, sometimes it is your family. Some days it is a property. Every once in a while it comes from all directions and seems unbearable. Just stay focused, prioritize, try not to be scatter brained, and take a deep breath. I have a demanding job, a side business, currently flipping a house, manage rental, and family. Right now is the busy time for my business and I am trying to wrap up the flip. So I haven’t exercised a lot the past few weeks. And it is okay. I still do when I can, just not at the level I want to. But I will start up again in a few weeks, and will also have more time for my family. Just take a deep breath and know that some days you can’t do everything and it will be okay.

It is really hard to get a traditional mortgage for a flip because most are considered unsafe to live in but not impossible. I have a good relationship with my lender and they have let me do an escrow holdback for certain safety repairs. I pay for the repairs upfront with the loan and I have to finish in 30 days or so. The appraiser then does a reinspection and signs off and I get my funds back.

That is a really high debt to income ratio. If you will still be high once the car is paid off that means your mortgage is too much for you. There is only two ways to get a better ratio; increase your income and decrease your monthly debt payments. If the problem is the house probably time to list.

It is all about risk and returns. You have less risk if you pay cash as there is no loan. The bank can’t foreclose on you because you own the property. However, you can get a higher return, and more opportunities if you leverage and buy multiple properties. Leverage can also help you scale and grow your portfolio quicker than saving and paying cash for each property. You just don’t want to over leverage where if you have a financial issue it would cause you to not make a payment and you could lose a property. It is less stressful to have a paid off property and you will want to get there eventually even if you borrow for a while to build your portfolio. There is no right answer, it is a personal choice based on your goals and risk tolerance.

Is the bank giving you credit from your rental loan income and backing off depreciation or do your rentals not Cashflow? Rentals should give you a better dti income. DTI is months loan pmts divided by monthly income.

She can setup an account at credit.com and see her credit report card. This will tell you both what areas of the calculation is causing the most harm to the score. Debt utilization (high balance to credit limit) usually has the biggest effect followed by 90, 60, and 30 day late payments. if you paid the collection acct you should see a score improvement within 30 days. Pay down credit card balances or asking for a higher limit can help as well.