All Forum Posts by: Craig Jeppesen

It might work, but I would have a backup plan to mitigate the credit risk. First make sure your lender is fine with it, and it doesn’t hurt your dti ratio. I have seen many people who were qualified for a mortgage and last minute buy a car or a boat and suddenly are not able to get a mortgage. Second if you want to use $10k make sure you get a $20-30 k limit so your credit score is not affected too bad. Third never be late on your payments or they will charge you late fees and start charging you 30% in interest. Personally it is too risky for me but I am pretty conservative. I do use a cc to lower my carry costs. First, I buy my materials at Lowe’s for example on my pro account, I then pay for it with my cc 30 days later, and then pay my cc off in 30 days. I just got 60 days no interest, and I increase my cc rewards which I use to buy materials later.

The market will not be crashing anytime soon. Unemployment is very low, inflation is great, and inventory is still super low. The market is slowing just a bit as mortgage rates go up, but just a bit. It is still a sellers market. It is predicted that we might have a recession in 2020 or 2021but that does not necessarily means the market will crash and most likely will not. If you want to watch for recessions watch the 2 year and 10 year treasury. If there is a rate inversion it will probably lead to a recession which might cause the market to slow down.

I work for a credit union and just checked today’s investment property mortgage rates. A 30 year rate with 25% down and a 1% orig fee is 5.625%. It is usually another 25-30 bpts if you don’t want to pay the orig fee.

I have a new flip I will close on next Wednesday.  My goal is to finish rehab and have it on the market by 3/1/19 and use the gain to put a down pmt on a rental when a good deal pops up and start on another flip once my new rental is ready to go.

More specifically this is what I would do if it was me. Step 1 buy a duplex with 20% down, rent out one side, and since you are on the road a lot get a roommate. Step 2 save all your money. Step 3 network with your office and your clients and find out who else does real estate, or is good with their hands. Step 4 while saving and networking learn about your local re market. Step 5 partner with someone you have met that already does flips, invest your money and help out on the weekends or when you are in town. Now within a year or two you have experience flipping and as a landlord.  Now repeat. Keep saving up more money by living frugally and using your good w2 income and money from flips and rents and keep adding to your rental portfolio with large down payments, keep doing flips with your partner, and pay down your re debt by snowballing. If you stay consistent you will be a net worth millionaire in 10 years. Keep it growing slowly and start to enjoy life a little.

You work too much for $16 an hour. You need to slow down your w2 job to you will burn out. 

You could find a partner in your area that has more time to do the work and you put in more of the money. You can use property managers if you want buy and hold. You can be a private investor and lend your money to flippers in your area. You could house hack a duplex and live in one side. Lots of options to be involved in re investing. If I was in my 20’s I would live on $20k and save the rest of your income after taxes. You could have a few hundred k to be a hard money lender in a few short years, or a private lender to flippers. Whatever you decide to do, spend your free time on the road learning and becoming an expert. If you do you will be successful in whatever direction you decide.