All Forum Posts by: Jeremy Muehlbauer

Michael, you have to just do what is right for you in whatever situation you're in. I've done both a HELOC and a cash out refinance on my current house to buy my 9 units and it may not be the most efficient way to purchase but it has allowed me to own 2.5 million in real estate and have 500k in equity that will grow at 3% or $75k a year with normal inflation. That's like another full time job. You just need to make sure when something goes sideways cause it will that you have your reserves and a plan.

 Ha, yeah that had always been my concern but some of the suggestions on here seem valid about strict rules and regulations on the leases, and I would be providing housing at 20% to 30% cheaper than anyone else could find of they wanted a studio to themselves. I know the demand is there just don't hear too many personal stories from people that have actually done it. 

Minneapolis and surrounding metro investor here.  I would say yes to this market if you like steady consistent growth and low risk.   We have 18 fortune 500 companies in the metro and the number 1 largest private company in the United States. 

I agree with previous response.   You may need to see if you can get the balloon time extended.   I did something similar just last year on a bigger scale and made sure I had 7 years for my balloon since I only put 16% down. 

So, I have an option to buy my brother's house and I would buy it subject to. He has a great 2.75% interest rate and a ton of equity that he would allow me to buy him out over the next 10 years at a 0% interest rate on the equity.  This house as is is worth about $340,000 I would be purchasing it from him for about $320,000 with a $30,000 down payment.  Between his normal p i t i of about $1,200 a month and the 1166 a month that I would pay him on a secondary note at 0% my total payment would be about $2,500 a month.  The house is a five bedroom could be converted into a six bedroom three bathroom house about 20 minutes from downtown near schools in a secondary suburb. Rents are about $2,800 to 3,000 a month for 4 to 5 bedroom homes in this area.   The only way this would cash flow much is if I rented by the room I could rent it for about $750 per room if I added the 6th bedroom in the basement. The only reason I'm thinking about doing this is because I would get a ton of loan pay down very quickly because of his low interest rate and 0% secondary note to pay his Equity off.  I don't know if rent by the room is worth it I have. I currently have four properties which are nine rental units that all do just fine but I don't have any experience with rent by the room and I don't know if it is a huge hassle or not.  Any insight on this would be great thanks.