All Forum Posts by: Derek Mihlfeith

@Shiloh Lundahl - That's a great point, I hadn't thought about that.  Thanks for the tip!

Thank you all for the responses, and advice, it's appreciated.  The Mrs. and I have some thinking to do, but it does sound like option 1 - provided there are no legal issues - sounds like the smarter thing to do.

@Dylan Speer - I'm open to discussions. Appreciate the tips.

Hello all,

First time investor here looking for some advice from the pros.  Please correct me if this is the wrong forum to post.

My wife and I are in a position to invest in our first investment property. We're likely going to be using the BRRR method, with some possible short-term renting mixed in with this second property (pardon if my vernacular isn't correct).

We have a couple of options available to us, but can't quite decide on the best route.  

Option 1: - Finish our basement and convert it to a rental unit,  which based on comps, we believe we could get close to $1800/month.  This is enough to cover our mortgage on the note of the total house.  The caveat here is that it would require about $40-$50k capital, which would lower our purchasing power on the second property. This would likely take 3-4 months to finish, and likely another few weeks to find a renter. Our primary residence for the time being would be the upstairs portion of this house.

Option 2: - Purchase the second property, preferably a 2 unit rental. One unit would be a short term rental, so that we could use it when we want, and the other unit a a mid to long term rental. If we went this route, we could live here, and turn our original house into a 2 unit rental house. The problem is that we likely wouldn't have the capital to finish the basement on anytime soon on the original property if we went this route.  Unfortunately, I don't have the numbers on the potential second property yet, as we're still looking, and deciding the best route to take.

Any guidance, pointers, opinions, clarifying questions or things I might be missing are greatly welcomed and appreciated.

Thanks!