All Forum Posts by: Kelly Conrad

Are you planning on selling in 10 to re-pay yours back then since you're doing the interest only then? 

Perfect! Thank you @Ryan Murdock!!

Interesting @Sam Alomari, so in your example we'd take about $167 out of your cash flow to pay back the HELOC if I'm understanding correctly?

Awesome! Thanks for your response @Sam Alomari, I appreciate it! I've been seeing that doing this will increase your own mortgage payments, how much did it increase yours? I'm guessing it also depends on your interest rate and state, but I'm curious if it's like $500 more a month (which probably takes away all cash flow) or like $100 more a month. That seems to be the one negative I'm seeing besides the personal loan stuff.

Looking to invest around Lake Nokomis/Richfield/Bloomington, MN

I've been doing some reading, and with the prices in my area I don't have enough funds for a 20-25% downpayment for multi-family properties. I have almost 30k available, but with some of my calculations using the BP Rental Calculator to get a good cash flow, most of these properties are looking to need about 60-70k down.

Now, we own our SFR and bough it at 224, and now it's been assessed at about 275 according to our property taxes. My question is, can I take out a HELOC on our primary house and use some of that money to put a down payment on our first property? From my reading it looks like that shouldn't be an issue, but it doesn't seem to be how folks are getting money for their first property downpayment.

Hello! All those minor things you can do. Looks like major electric upgrades, structural repairs, new additions, plumbing, and grading often require special licenses and/or permits from a municipal or local government. 

Hey @Logan Allec! Thanks for the input. For some reason when I tried searching for out-of-state buying the search wasn't loading, so I figured I'd try posting until it eventually worked :p

Anyways, you make some good points. So for residential properties like that, you don't have anyone checking to make sure things are ok? Since I can travel to this area for work on a weekly or semi-weekly basis, I suppose that wouldn't be much of an issue. I also have a ton of coworkers in that city so I could tap on their knowledge as well. How often are landlords physically going to their properties even when they're really close? Maybe it isn't as big of a hurdle as it might seem.

Also, since at least some of these properties are occupied, I wouldn't be able to make any rent or upgrade changes until the lease is up. So then potentially I could be getting cash flow in right away and we can save up for those changes after the lease expires?

It just seemed like to at least get things moving, being able to have at least one or maybe even two properties out there bringing in cash flow so we can save up for the more hot market where I'm located could be a potential option. But of course, it doesn't seem to be the most ideal, especially for repairs or dealing with tenants as needed.

Just as an example, say the multi-family properties in your area are hot and going for at or above asking price.

Now, say 1.5 hours away in a different state, there are multi-family properties with tenants, but it's also in a college town (some of the properties don't look to be student tenants, but long term tenants). Obviously because of the distance, you need a property manager to handle the day to day, but you regularly are in that town to stop by if needed.

Say the cash flow is there as well, so that isn't an issue. If it were you, would this be something you'd consider? Why or why not?

@David Faulkner Thank you! I guess I don't have to tell my husband we're getting separated ;)

I'll look harder at the hard money lending! That just might be a good spot to start for us since we're really close to that mark but not quiet there. Have you used hard money before?

Interesting. What qualifies as someone living at a property? Just having bills in his name and staying there? This all sounds shady but now I'm just curious