All Forum Posts by: Dillon Dale

@Javen Gumber I bought my first property last year as a junior in college going to school full time. It is possible and you can do it. My advice is to be frugal and save as much as possible for a down payment, rehab, etc. In the meantime read books, study the market, listen to podcasts, meet people, build your team.

Hi guys, I am wondering what you would do if you found yourself in this situation. I feel this could be a good learning opportunity for myself and other's who are in the early stages of their investing career. My question is, how would you grow from this position?

Scenario-

You bought your first duplex one year ago for $205k. Your mortgage balance is $173k at 5.25% annual interest. Monthly PITI is ~$1400. You are currently living in one unit and the other is rented for $1000 per month. Your unit could rent for $1300. Both units have been renovated. The property has updated electrical and hvac. The water heater and roof do not have much life left, but the siding and windows are in ok shape. The property is now worth $240k. You have $5k cash.

Question-

1) How would you grow from this position?

2) How would you manage your cash flow? I.e. how much to set aside for reserves/capex/maintenance etc.

This post leaves a lot of room for you to be creative and is intended to help new investors grow their portfolio, so please provide as much detail as you can. All ideas are welcome!

Research what the rent went to in your market during 2008-2009. I would consider that worst case scenario, but you never know what can happen.

It depends. On a residential mortgage they will limit you to a certain debt-to-income ratio (DTI). On a commercial deal (5+ units) they loan based on the income of the property, not your personal income. In this case you would just need to come up with the down payment.

Congrats!

Congrats! As a newbie investor, this post is very inspiring to me

Hi BP,

I am 22 years old and a junior in college, majoring in finance. My fiancé and myself currently rent an apartment near St. Paul. When our lease expires in May, we would like to buy a duplex in the Minneapolis-St. Paul metro area to house hack. My long term goal is to reach financial independence by age 30 through rental properties. 

I hope to learn as much as I possibly can in these coming months before making my first investment. I am looking forward to meeting everyone and learning from people who have had success investing in rental properties.