All Forum Posts by: Jaron Walling

Great question and look forward to other peoples responses. I was in the same situation last month with $15K in student loans. I decided to pay the loans off. My reasoning was my DTI ratio since my income isn't that great. I'm working two jobs but want to leverage debt on a future property. Another part is paying off the loans should improve my credit score. Also, the interest rates on my student loans were 4.5-6.9%! That's higher than a fixed rate mortgage so I feel I made the right choice. 

Also, to add to @Kevin Sobilo comment, you won't be able to make strong offers as quickly as other investors. By strong offers I mean cash offers because everyone here knows a cash offer wins 99% of the time. 

@DJ Lee What he is saying is it appears you don't have a plan. It's important to figure which property type to go after. You can't list SFR, duplex, tri, etc and expect to find deals on each one.

I would start networking with local REA and see if they specialize in ONE or TWO of the types you're looking for. You could also meet up with local investors doing the same thing. 

@Andrew B. Really great response! As a landlord you cannot wait for tenants. Staying diligent and proactive before they stop paying rent, cause property damage, or move out unexpectedly is really important. 

This question will not be answered without numbers. I would sit down with wife and hash out some numbers (purchase price, local rents, rehab costs) and see what's possible in your market. Some people above mentioned going the REFI route and taking the equity. That's a great plan unless you live in Boston (Jamaica Plains), like my friend, where he can't even buy utility shed.  

Good luck man! 

Adding to what @Brandon Reed said, 203k loans are not easy acquire. Even if you find a local bank that offers them, there's a bunch of hurdles they require and they only work with certain contractors. I would consider looking for hard money lenders, family, or HELOC if you have another property.

Good luck man! 

Location, Location, Location. That's all that matters because people won't pay a premium for property in bad locations. Networking with more REAs in your area may be helpful too.

You need three things: deal, money, or knowledge. If you have 1 or 2 of these the other will fall into place. Take money for example. How much equity do you have in your current home? How can you leverage it to purchase another property? What are the cap rates for your market? 

You made a point about "loving house hacking but my husband doesn't". I've seen people talk like this before. Something has to give so you can agree on the investment otherwise you're just wasting time.  

@Benjamin Seibert That's a lot more clear. Either way it showcases you need a good deal! If you over pay for the property the BRRRR strategy doesn't work because you end up with tons of cash "stuck" in the investment.

If you're planning to hold this property for the long haul I would listen to @JD Martin and go with vinyl or wood flooring. It may cost more install upfront but the durability wins, year after year, tenant after tenant.