All Forum Posts by: Kathryn Bennett

As a millennial - fear. Between prices and rates the payments are stupid high. Knowing people who lost it all in 2008 has me scared. 

Hey! Seeking some advice as I see conflicting information on this topic quite often. Let me give you some back story:

I purchased my first home in 2016. Lived in it for over a year and then rented it out. I still have this and it has been consistently rented since 2018. I owe around $195k and it's worth around $260k (just a guesstimate based on internet data). 

My boyfriend owns a townhome that he bought in 2016. His family lives in it now. It was appraised at 244k in October (it's increased already since) and he owes around $180k.

We just bought a primary residence together and still have the other two properties. 

I work for a mortgage company. I just started with them in Sept and my income cannot be used until Sept 2020 for qualifying purposes with traditional financing. 

We are looking to expand our rentals and are looking to possibly get into duplexes/triplexes.

Because we aren't able to use my income in the traditional sense and we own 3 properties between the two of us, what would your recommendation moving forward be in terms of forming an LLC or continuing to get properties in our personal name (as much as we're able considering traditional financing won't use my income).

We are still learning/figuring it out but one thought we have would be to convert our properties or some of them into an apartment complex long term.

We could get HELOC's on our properties to use. I am not sure if I can because of my employment history, but he could.

Recommendations would be greatly appreciated. We are in VA.

I would not say it’s an “issue”and quite frankly I don’t care what Dave Ramsey says either way because he isn’t me or my situation! We got ourselves into debt, we recognized it, and are making our way out now. And problems do not always get worse; otherwise what is a solution? ;)

 Agreed. It's very hard especially when you have another person who is not nearly as sacrifice driven as me. I had no debt besides minimal debt for a vehicle and twice as much saved a few years ago, but with buying the first home we spent a good deal. He also doesn't share my mentality nearly as much. Working on that :)

Thank you!

Katie

 Essentially yes. We do plan to get married by the end of the year/early Spring. 

I thought about the HELOC but I wouldn't be able to get it on my own. I don't think I can add my fiance to the rental property at this point unless I am missing something. I was planning to speak with someone about a HELOC that way I know what is required of me so I can plan accordingly. Based on everything I have read about LLC, it doesn't offer any real protection for an individual. It seems as though it is a pretend veil. My end goal is to have everything into a corporation where my personal name is not attached whatsoever but that will take plenty of time, so I am starting from where I am.

 We currently have around 30k in personal loans/credit card debt. 

Matt,

Thank you very much. The first home was actually purchased with the intent to rent it out and I currently have an infinite return on it. 

We kind of lost sight of our end goal with buying the second one and getting ourselves into debt, but we are trying to autocorrect now. Luckily, we will be relocating for my fiancé's job and they will be purchasing the second home (which we live in) from us if we can't sell it within 60 days of his relocation and we have actually gained some equity on it, but not much. The mortgage is too high for us to even break even if we rent it out based on what I see in the current market. I could be wrong, but data says otherwise. 

Now it's time to buckle down and save, pay off our debts, keep learning, and I want to start networking as well.

Hi Matt,

Sorry for the confusion. We currently have two homes. One in my name, one in my fiancé's name. The goal is to build my portfolio and create positive cash flow. 

Thanks,

Katie

Hello All,

Per the title, I am looking for opinions here. I currently own one rental property with a bank mortgage that I purchased at 21 yo (just over 2 years ago). 

Here is the dilemma - after we purchased this home, we moved, and we lived in it for approximately a year. By doing this, I left my job and the industry I was in because I disliked it and became a real estate agent. We ended up purchasing another home to live in. Stupid, I know. This home is in my fiance's name. We will be selling it soon without taking a loss and he will no longer have a mortgage to his name. Our credit is pretty strong, we only have about 7k cash on hand, and we screwed ourselves into a good bit of debt. Needless to say we got onto the wrong path for a few different reasons, but now we are getting back on track.

I cannot get another mortgage - I do not have a two or even one year job history at this point and I do not have the income or down payment.

He cannot currently get another mortgage because he is tied up in this one. He has the job history, income, and credit. 

1. I would like insight on options I personally have.

2. Do we just wait until he is open to get another mortgage? If so, if we do not have the down payment, how do we approach that?

3. If he does get the next investment property in his name, how would we get the next and the next if we just rely on our own personal line of credit with no money down...?

4. Do I suck it up and go back into the industry that I disliked at the time and buckle down knowing I can bring in thousands of extra dollars per month? (Not interested in being a real estate agent for full-time career)

I know this is a lot. I know this is far from ideal. I know what position we are in and would appreciate feedback only based on a positive note. I am still learning a great deal. 

Thanks in advance,

Katie