All Forum Posts by: John Lampertius

FHA and state funded loan programs are the way I started out.

Hello Zach / Eric,

I started by buying my first home with a friend...making it affordable for both of us.  The house was large enough we actually rented out two extra rooms and then I bought his half out 2 years later.

Starting out is hard. What I did is "back-filled" the homes I purchased and lived in.  This way the mortgage lender will more easily provide the loan (owner occupied) and you have less closing costs and typically a better interest rate. 

This also gives you a chance to renovate the new home as quickly as you want. 

I also worked with the same lender - so they know your history/track record. Makes it easier for the next one.

I moved from my 2nd home and back-filled it with tenants as I moved into my third.

Good luck!

Cheers,

John

Hello Bradley,

I understand the idea of being "debt-free".  I do have a mortage on my recently purchased current primary home.  Since my divorce in 2009 (and her side forced a BK), I've had to live with Debit cards and honestly, it is refreshing to not have to worry about paying down any 'revolving' credit - which, since the 80's? is no longer a tax benefit.

The two rental condos I have are 'free and clear' because of it's all the money I had after liquidating my 401k's to get back into RE investing. 

I agree with Dax on the benefits of leveraging your money.  If you put 20k down on a 100k home and it appreciates 5% per year...you've 'earned' 5k on the 20k in the first year...and hopefully net positive each year following.  You also have huge tax benefits because you deduct the mortgage interest from your rental income and can in some cases have a "net loss" that can reduce your employment based taxes...

I'm now in the process of a REFI on one condo to pull out money to purchase the next.  I believe it's called "leap-frogging"...but this got a lot of people in trouble in past couple decades.  You have to be comfortable with the level / % of debt and risk. 

Having  access to "funds"...and "seasoned funds" will allow you to take advantage of more opportunities as they arise.

Good luck!

Cheers,

john

Hello Mary Lou et al,

Similar history...started in 1989, added a couple SFH's, got married, 3 stooges now in high school, divorced, lost nearly everything except one home that I lived in...back up to 2 rentals and aggressively looking for more. I'm a renovate-to-rent...haven't gotten into the flips yet.

Cheers to all and this wonderful site!

John

Blake - I considered Hawaii when I've been there in the past. 

At this point, I'd be more interested in Europe...having been there a couple times recently.

Cheers,

John

Thanks Kathleen!  Thanks Blake!

Sorry, it doesn't look like I can respond directly to your notes...just getting the hang of this.

Cheers,

John

Thanks Sam!  I was glad to get out of Royal Oak - their fees and "cooperation" were getting out of hand - and I was even on the RO Zoning Board for a couple years...

Cheers,

John

Hello All,

New to group. I've left SFH's and duplexes behind for condos. If the HOA fees are reasonable, they are a low-maintenance investment. Screen prospective tenants well and they practically run themselves. Make friends with the HOA's, their maintenance groups (if available) and it makes life so much easier.

Only issue is initial purchases and HOA's requiring new owner to live/occupy unit for 1 year prior to rental. I'm just about to make an offer on a 1Br in a new complex to me...and will be approaching the HOA to see if I can pay a HOA monthly premium for the 1st year to get it rented right away. I have a good history / track record to present to them...and many times they would rather have the money vs. not...or at least in theory - as I was on the board of the first condo I purchased (and lived in).

Hello BP Community!

Not sure how I stumbled on this site...but what a fantastic resource!

Cheers to all and happy to be a part of it.

John (Farmington Hills, MI)

Hello BP Members!

New to the site and wondering if any of the HML providers making comments work in SE Michigan?...or can refer me to someone working in Michigan.

Thank you and have a great day!