All Forum Posts by: Josh Mitchell

@Albert W.

If you do a cash out refinance, the first mortgage is paid off and the new mortgage is open. So if you have a mortgage outstanding of 290k (300-10k), then you do rennovations to the place and it comes back at $500,000 and you are able to get $375k (75%), you will pay off the existing mortgage of $290k at the closing, along with the bank closing costs and be left with the balance. So 375k-290k-closing costs (dont know what they are in your area). I would imagine you would be left with about 80k cash out, and your new mortgage amount would be 375k.

Hope this helps clear things up a little bit for you.

Welcome to BP @Christopher Madden!!

Welcome to BP @Anthony D'Angelo you are def. in the right place!!

@Garrett Pearson

 welcome to BP Garrett! You are right down there street from me! Wish you the best of luck in your journey, and if there is anything I can do to help, just let me know!

I just turned 26 and have two condominiums in the suburbs of Chicago. While this isn't the ideal investing model because of the HOA fees included on most condo's, it was a good way for me to learn landlording and not have to worry about doing all of the work myself. I have learned what can go wrong (or better said, what will go wrong) and about dealing with tenants. Even with the HOA fees I have managed to make both properties cash flow. Soon I hope to expand to a small 2-3 unit MFH in the next year and grow from there. Just getting the equity built up in the properties now, while I continue to advance in my 9-5 job until I can earn enough to do REI full time!!

@Theo Hicks

personally I think REI is the way to go, but keep in mind that the 401k plans often times have company matches to go along with them (Free Money!!!) I would just invest the minimum in order to get the maximum match from your employer and invest the rest into REI.

Quit convincing your friends to get involved, less properties for the rest of us!!! ;)

Welcome to BP @Gerrick Ratliff

@Ronnie Gilmer 

I would assume the "condo fee" would be the HOA (Homeowners Association). Most times with condos these fees cover things like yard maintenance, common insurance, maybe some utilities, trash pick up, etc., clubhouse, pool. You will still have to get insurance for the interior of your unit, as the common insurance is for the outside of the building.

@Ronnie Gilmer 

make sure you do your math before. Does this property need any repairs? Make sure you account for all costs. Keep in mind, the HOA fees can and most likely WILL go up!! They will eat into your cash flow.

@Solomon Tompkins 

welcome to BP! Reach out if you have any questions.