All Forum Posts by: Karen M.

Bill B., Thank you so much for your detailed, emphatic and encouraging reply.  Great suggestion to work with a mentor.  To be honest, it takes me a while to get to know people, and it might take as much time for me to develop a relationship as it is to find a property -- BUT!  It doesn't have to take that long,  but I need to get out there and work on relationship building and really have some substantial conversations with people in our local investing community.  I've been to REIA meetings (which are difficult to get to with my family schedule) and I can't connect with people that fast, it's way too quick.  I should put more effort into getting out there, and getting to know more of the local people who participate here at BP.   Great point.

Available time is a big thing to consider.  Really.  I have this romantic vision that I will have a perfectly organize filing cabinet with leases and things, but in all honesty, it might be a total disaster for me to take it all on.  One property to learn on is a good idea, I think, but it could get complicated.   I think I am more of a tortoise and I enjoyed Marcia Maynard's podcast where they buy a rental every 5 years.  I am not sure what our pace will look like (and it will depend GREATLY on how the first one goes!)

Our home mortgage is cheap at 3.5%.  Most of the arguments I'm absorbing for paying off the home mortgage are emotional rather than math-y.   #1)  When your mortgage is paid off, your security is so much higher -- paid off homes typically don't get foreclosed on.   #2)  not owing anybody anything is liberating.  There is a Clark Howard research piece about how retirees with paid off mortgages are happier than ones with mortgages.  I think about how my husband's job really becomes optional rather than a requirement if we dig in to pay this loan off. I think that would be a tremendous burden lifted off him.   Dave Ramsey often quotes the Bible verse:  "The borrower is slave to the lender."   It's good to be mindful of the obligations.  

I have been a bit obsessed with personal finance and investing planning lately, and it is because I'm viewing all this investing and planning and saving and financial stewardship to be an act of love for my family. :)   @Bill B. 

 Robert, thank you so much for that info!  I had never heard of a Home Depot project loan, and that is very interesting.  But -- is it different from a basic HD credit card?  I will have to look at your link.  Thank you for sharing that. 

I am so impressed with how Dawn used Lending Club and Prosper and those are also very interesting and creative options too.  

It is true, there is money out there and if the property will make money, then borrowing conservatively should not be a problem, at least, I hope.  I am very curious about the worst-worst case scenarios.  (I will start another thread to chat and brainstorm about that.) In essence, I think it's those worst-worst case scenarios that Dave Ramsey is trying to protect people from.  We are very blessed and feel like we have some safety but I don't want to take our financial security for granted either.  

Thank you for the conversation! 

 Hi Steve, i think you have a good idea.  I need to read up more about exactly how HELOCs work, and how they might work for us compared to a regular Home Equity Loan. 
I'm just not up on the terms of these types of loans and how they compare to other types of loans and lending.  Good to investigate, thank you!  

 Good points, Mike.  I believe in listening to smart people, and getting great ideas from people who have figured things out and made it work.  Thus said, I regularly listen to several sources of investing and personal finance information -- Dave Ramsey (personal finance podcast),  Jim Cramer (stock market podcast / email show recaps),  Bigger Pockets (podcast and forum community) and the Motley Fool (paid stock services and paid forums).  I also have collected a small library of business books, mostly real estate titles (because it is such an intricate and detailed topic).  So, I take it all in and let it roll around my brain. I love learning, it has been a wonderful time to take in all these ideas and, on the stock market side, put things in to practice.   

I am still hatching a plan for Real estate investing -- the vision is starting to come together, but I'm not there yet -- just last week I flip-flopped on what parts of the city I should focus on, and I'm also struggling with the question of how much money is appropriate for an initial experimental investment, and whether I can realistically handle property management, or should I have a manager right away.  These are all big questions.  As much as I love the encouragement to get started, don't fall into analysis paralysis, etc, I want to feel GREAT about the first investment. 

I was thinking the other day that it might be like having kids -- you're never really ready to have kids, and there is always risk and unknowns.  But it is good to have reasonable expectations and a long term commitment to what you're getting into!  :)  

Thank you everybody for taking the time to help with this conversation, it's wonderful and I appreciate all your insights!  :)   I love this place!   I'll go through and respond to each post a little at a time.   

@Dell Schlabach   thanks for the suggestions,  we're going to pass on this property because there is too much "unknown" and while it could turn out great,  it's not close enough to a sure thing, and we don't have enough extra cash on hand to have the confidence to go for it or to involve a lender.  Thanks for the ideas!  

@Marcus Johnson  -- I like the simplicity of waiting and saving.  :)   Would you suggest paying off our home first before investing, or would you go for it with a property sooner than that (see above for detail).   Thanks!

Big Henry -- a private lender sounds like a good idea, if we were to move forward.  I think we are going to pass, but I will be watching the auction over the next few days.   Thanks.  @Henry M. 

It is our intent to try land lording with an affordable first property.  How exactly did you stretch or go above and beyond the Dave Ramsey baby steps @Christopher Leon 

@Brandon Hopkins   I don't think we would be bankrupt with no mortgage payment, but, we certainly could become very uncomfortable and stressed out.   Are we investing with the goal of getting stressed out?   No! 

Would you pay off your personal residence first if you were us?   I'm waffling on that.  

Thanks for the advice!