All Forum Posts by: Daniel Pitner

@Clifford Paul Thanks for your input! Are you suggesting more cash for a down payment, or more cash in reserves in case of emergencies (Or both)? 

@Joe Splitrock, we will most likely do loan with PMI on the new house with 20k down (or we will save up for the next few months to increase our down payment). Is this the route that you would take or do you see a better option if I were to wait it out for the multifamily property?

@Joe Splitrock, thank you for your reply!  That's correct. I'm banking 3.5k to 4k/month.  Currently I have 20k in liquid cash to be used for an investment/property. 

As I have posted before, my wife and I are looking to get into Real Estate investing within the next year.  We currently own our home and plan on turning it into a rental, as mentioned in past posts. I wanted to get some feedback on what you guys would do if you were in my shoes. My current financial situation is as follows: 

1) 3.5k-4k extra cash flow/month

2) we have no debt other than our home

2) Our home is worth $186 and we owe $148 on it so we would most likely take a loss if we sell

3) Our mortgage is $860/month 

4) The home should rent for around $1250/month 

Unfortunately , house hacking is not an option for us at the moment.  With all of this considered, what would you long term plan be if you were in my shoes? 

@Nathan Roberts thanks for the insight! Currently I have a very flexible job situation with the ability to field calls throughout the day and come and go as I please. I am also done for the day by 2pm most days.

To answer your question: yes and no. I would love to become financially independent on my rental properties at some point, however I would like to use my real estate license to generate income in the short to mid term.

@Aaron Kinney, I actually love my current sales job! The part that is making me want to change is mostly the long commute . I also enjoy the grind of sales, I just don't find my particular industry to be sustainable for long term growth. 

I hope that helps!

@Alexander Flores I think you are right, I would come very close to losing money on the property if I sell it right now. I appreciate your input on this! 

Hi Guys, 

I currently have a great sales job that I love and make good money at it.  The problem is that I have a very long commute (often over an hour) and I don't find the sales grind a long-term, sustainable option.  Along with starting to invest in real estate, I have been playing with the idea of getting a real estate license and working part time in real estate while I grow the business. 

What are your thoughts on this? What challenges will I face? 

I appreciate your input!  

@Jason D. The plan would be to invest the extra money at some point down the road in another property, most likely in two or three years. I would have it sitting in a mutual fund during the downtime.  My biggest scare is being over-leveraged; As a 24 year old I was only in 8th grade during the market downturn so I didn't feel any personal effects of the downturn, I only know what I've been told about it. 

@Alexander Flores, these are some great points. We want to grow at a steady rate, but not too fast. I've thought about using a HELOC for our next purchase, but I'm admittedly not too informed on how a HELOC will work. How much equity do I need in a property to take out a HELOC?

A question for both of you guys is "if you woke up in my shoes what would you do?" I'll give you some background: 

We purchased our current home as a starter home before we first got married a little over a year ago. The purchase price was 170 and it is worth around 188 now and the mortgage on this is around $800/month. Before we moved in we rented it as a STR and, in my opinion, did decent with the return. For the four months that we rented it we would bring in around $1600 in revenue and that was in the heat of the Phoenix summer.

Would you purchase a new home and rent this one out? If so what criteria would you use to find the next property? 

Thanks, guys! 

Hi guys, 

I've posted in the past regarding me and my wife's plan to purchase a new home and rent our current one out. A new question that popped up is regarding how much money to put down on our new home. We will (most likely) be using FHA financing to move into our new property and live in it for a year or so before we rinse and repeat so we have the ability to put less than 20% down. Financially speaking we could do 20% (or close to it) , however what would you do in this position? I have heard different opinions regarding this and I would love to get your guys' take!