All Forum Posts by: N/A N/A

So last month, I finally bought my first rental. I did it on a 5-1 Option ARM. I also have the same thing (5-1 Option ARM) on my private residence. Now... I'm making interest-only payments to keep from going into negative amortization. I COULD be paying in the low $400's as a minimum payment, but I've so far sent the Interest-Only payment of low $900s

The only reason I did Option ARMs on the houses in the first place was to have the (duh!) option of sending less money should the need arise. The payments are locked for 3 years by the way.

So... the meat of my question: to buy my 2nd rental, what would YOU do? Would you make minimum payments on my personal and 1st rental houses and SAVE that money that WOULD have gone to make "regular" payments? If I do that, I figure I can save approximately $800 per month. In 2 years, I'll have socked away just over $19K. I could then use that as a downpayment on another rental.

Whaddya think? Again, the only reason I got the Option ARMs were for investment purposes; not trying to afford a house I really can't afford (like a lot of people do then get screwed later with higher payments). I do realize that both mortgages will go into negative amortization, so that's where my questions arise.

Help?

Emrah

Well, I've been on this site for quite a few months now (maybe almost a year???) and 2 weeks ago, I finally bought my first rental property.

A little introduction:

I live in Chaska Minnesota. I work as a race car mechanic in the Grand Am Road Racing series in the Daytona Prototype division (we were formerly a Trans Am team), and I'm getting married in 7 days (May 28th) in Vegas! Of course, that didn't stop my fiance and I from buying our first rental. We had a ready-made renter in our friend who is getting divorced (and is a realtor no less!).

We'd like to pick up another property before the end of the year. I'd like to be able to afford a duplex; we'll see.

Anyway, I'm trying to plan ways to make this my life and business (I can't stand my job anymore. If I hear another race car, I'll puke)

I've been lurking a long time here and have gotten some really great info. Hope I can contribute in some sort of meaningful way if I can as well.

Thanks,

Emrah