All Forum Posts by: Josh Young

@Carter Neal quitting your full-time job is going to set you back on investing if you plan to get conventional financing (typically the least expensive financing).  I would recommend buying at least one property before you quit your job, maybe something that you can house hack to help replace some of your income or at least help keep your expenses lower.

@Carlos Silva if you don't mind moving this is the best way to acquire rental property. The financing for a primary residence is much better than it is for an investment property, you can put less money down and you get a lower interest rate. What difference does it make if the loan is on your personal home or an investment property, it's still your debt.  Also, you will never own anything free and clear, you will always have property taxes and insurance (although insurance does become optional once the loan is paid off).

@Terra Ternet you should talk to a local Property Manager/Realtor to help you. They will determine fair market value and put a lease in place for you. You will need to contact your insurance company and update your policy to a landlord policy. I don't create LLC's for my rentals because I have found that the added protection from liability is minimal if any and it just makes financing much more expensive if you want to do any kind of refinance. I would highly recommend you use a CPA to do your taxes as they will likely save you more money than you will pay them. I would make sure you have 6+ months of PITI payments saved as reserves, maybe even an extra $10k to cover cap Ex depending on age and condition of the property. Also, if you are in an HOA you want to make sure that medium term rentals are allowed.

@Jimmy Rojas there are a few, here is a map. Shoot me a DM if you want to check any of them out.

@Robert Johnson I don't think you have enough capital to buy something right away, you need reserves for cap Ex, maintenance/repairs, and vacancy. I like the idea of saving for another 10 months then buying another primary residence, the down payment is so low it's basically like doing a BRRRR as far as capital conservation goes, but the the financing is so much cheaper on a primary residence vs a BRRRR. Don't be in too big of a rush, and remember the more properties you have the more reserves you need.

@Tiffany J. I like buying a new primary residence and keeping the previous as a rental, this helps keep the down payment manageable (around 5% or less), it helps me better understand the condition of the property when I turn it into a rental (I fix/update some stuff while I live in the house and prepare for it to become a rental), and it helps make sure I always buy in a good area that my family will want to live which is good for appreciation. 

It is important to learn as much as you can and a mentor can help answer questions you might have, these forums are also good for that, but the truth is I learned more by doing it than I could have ever learned from a book/podcast or mentor. 

My suggestion would be, save to have more reserves than you think you might need and go for it, the extra cash savings will help offset a lot of the risk of not knowing what you don't know.

Here is what I did: https://www.biggerpockets.com/forums/61/topics/1096979-how-i...

@Lynn Wong San Tan Valley and even a little farther out into Florence you can buy a new build that will cash flow at 30% down. You can get a lower interest rate on a new build using the builder's lender and you will have almost no cap ex or maintenance/repairs for several years (long enough to give you time to raise rents and maybe even refinance). This area is growing and will continue to grow with the addition of new highways connecting this part of the valley. Full disclosure, I am an investor and agent/property manager in this area and I help investors find, analyze, buy, and manage properties using this exact strategy.

@Armando Carrera never do #1 or #2. You might refinance #1 in a few years, but don't lock up your cash in that property, once you do it can be difficult/expensive to get the cash back out of it. Don't touch #2, just enjoy the fact that you have a good rental with a great interest rate, at some point you might want to do a cash out refinance on it, but probably not until your LTV gets super low.

If I was you I would buy another primary residence using a low down payment, save most of the cash and then buy another primary residence a year later, and/or use some of the money to buy an investment property putting 25% down and save some of the cash as extra reserves.

@Jonathan Vince why is your interest rate so high, did you buy it as an investment property instead of a primary residence? You should be able to refinance it as your primary residence and get a lower rate. If you are looking to grow your wealth and add to your portfolio I would add leverage to the Bakersfield property, if you do a cash out refi you should be able to get 75% LTV which would pay off the $100k investment loan and you'd have $50k left over to invest. Then take part of that cash and buy another primary residence and rent out both sides of your current home. Here is a link to a post I did that might help you: https://www.biggerpockets.com/forums/12/topics/1108744-how-t...

@Seth Nichols rather than getting into fix and flip why don't you buy another primary residence using a low down payment and turn your first house into a rental?  Here is a post I did that might help you: https://www.biggerpockets.com/forums/61/topics/1096979-how-i...