All Forum Posts by: Jessie Keating

I think even if the appraisal comes in lower, that doesn't mean much to the seller. It just means you need to bring cash to close in order to get the loan with the bank. Of course if this guy was desperate to sell he may have lowered to not lose you! This sounds like a great deal and congrats!!!!

@Caleb Heimsoth Yes I am pretty sure about the $1900. Agent just confirmed $1900-$2000/ month. I would confirm with a Property Manager, but so far it is looking strong. 

@Patrick Menefee That is definitely an interesting option to think about... and you are right, the risk appetite is what is making me uneasy! 

@Nathan Gesner you're right, lots of emotional attachment!

@Account Closed it helps to hear that advise, thank you! I want to go with my gut but want to be sure it is for the right reasons! And yes, I agree I won't be doing marble again - live and learn!

I am terrified, but I don't want to let the fear prevent me from the smartest decision.

I own a home now, and my offer was just accepted for my new primary (seriously - hit every check mark on my dream home list!). I am pre-approved with the lender to keep both properties (heck yeah to not having any other debt besides my mortgage, having a high credit score, and liquid reserves). What is the best option based on my goal?

GOAL: Create a stream of passive income that ultimately allows me to retire from Corporate America if I want to. Let's say $10k/month. 

Market: I am in the Phoenix area, home prices are crazy here right now. The numbers below seem so much higher than what I hear on the Bigger Pockets podcasts, but it is what it is. 

Current home: Purchased in 2014 and completely remodeled under the assumption I would live here a while (before I found Bigger Pockets and considered rentals). Mortgage balance $163k, PITI and HOA is $1154. Let's assume rent at $1900/month or sales price of $320k. Pics included for kicks and giggles of before/during/after reno.

New primary: needs ~$40k in work, but will ultimately be worth it. Offer accepted at $415k, comps with one more bedroom sold for $550k - but I will be here at least 5 years, if not forever. Based on my personality, I need consistency with where I live rather than moving with each investment. 

Option A: Rent current, live in new primary

 - Can rent for ~ $1800 - $2000. Let's call it $1900 for argument's sake 

- Landscaping is $100/month, tenant pays water/electric, undecided if I would do Property Mgt company, but most likely. 

- If they don't make me close it, I have a $50k HELOC on the current at 6.75% for remodeling the new primary AFTER closing as to not mess with DTI.

- Can only put 10% down on new house from cash reserves, so I would have to pay PMI. The increased mortgage payment on the new house makes me nauseous, so would likely get a roommate.

***I am terrified with this option. The combination of not being able to put 20% down and being a landlord is clouding my judgement***

Option B: Sell current, live in new primary

- Use the equity for 20% down payment (no more PMI) and for renovations

- Cash reserves remain untouched for a different investment property next year, and more would be added to this fund but then as well

- Very unlikely I would be able to get the same kind of cashflow from property next year, but I could do more "tenant friendly" updates, instead of the marble bathroom countertops I have currently. 

*** This seems to be my gut answer, but I might be saying that out of fear***

This is the current home. Cash on cash ROI in the calculator is horrible because I was not renovating over the past 5 years for tenants, but for myself.

I am in Gilbert too. I am running into similar situations BUT on the other hand, the rent we can reasonably get is higher as well. It is becoming a lot more appealing to young professionals with the development of DT Gilbert as well as DT Chandler. 

I am in Gilbert and would be interested!

Yessss @Bevla Reeves - I need to try and focus on that! Delayed gratification is SO tough! 

This will be my first one, but I am very much looking forward to meeting everyone!

@Jeremiah Pangan I got "The Book On Rental Property Investing" - so amazing and eye opening!

Wait wait... you mean having a boyfriend means I get to live for free while keeping all my money for myself and future investments of my own? Dang I have been doing this wrong! 

Yes she should pitch in for rent and/or bills, especially since it is still a savings for her. If she pitches an attitude about it then that is a sign of her character and you need to take that into consideration of what you want for your future. Only exception is if she is taking care of your children, in which case that is a job in itself.

I would never ever expect a free ride, but a situation that is mutually beneficial for us both.