All Forum Posts by: Kelly Conrad

Hey @Ralph R., thanks for the post! My husband and I are incredibly lucky that we were involved in the VW diesel scandal and so the payment we got allowed us to pay everything off except the mortgage on our house. Truthfully, since we no longer have any debt except our house, it makes me a little nervous going back into debt since a payoff like that will likely never happen again! 

I didn't think about cutting back on my 401k, I currently have it at 15% since I like to save money :p I suppose I could lower it way down and put the extra into real estate, I'll talk to my Financial Advisor about this tomorrow!

I know, it's just one of those things where I don't want to waste their time until I have a plan and can tell them what I'm thinking. I figured they'd take me more seriously and appreciate that I'm not bugging them until I've decided I'm 100% in

@David Zheng I don't suppose you have a copy of the spreadsheet (with more "general info", not your exact figures and everything!) you used to help others in my position see where to start? That would be incredibly helpful if you could! :)

@Alexander Felice Awesome! That's what I'm looking to eventually do as well, it's nice to see that this has been working well for you to reach that goal! 

@Alexander Felice Thanks for the response! Looks like others are in agreement on using BRRRR as well. How convenient that today's webinar is also on that topic :)! It looks like you're focusing on SFR, what is your end goal if you don't mind me asking? Are you eventually looking to purchase your own building?

@Marc Jolicoeur Interesting, I've been seeing that mentioned a lot but didn't really put 1+1 together on that being a good way to start so you can get funds for other properties! Are you focused on SFR or Multi-family in the Twin Cities? I was looking around on RedFin (I know, I haven't gotten a realtor involved to get access to MLS yet just because I want to have a solid plan before reaching out to them) and within the Twin Cities for residential there aren't many cheap multi-family properties! They're all in the high 100's or mid 200's from what it looks like.

Hello again! Another money question :)

Thanks to the folks who answered my first question about funding repairs, but now that brings me to a different question: purchasing second, third etc properties.

So say you have enough money to purchase a property with 20% down and you're also able to do a few repairs. You also have a little cushion of your own because you've already purchased a house that you live in (not house hacking or looking to really "flip it") and have dreams of being able to do bigger changes in your own home or going on a nice vacation someday.

So now you've spent a really good chunk of change buying that first property and doing some repairs and now you're making an extra $100 a month from that property which is getting re-invested. Now my question is, how can you afford to buy another property when you can't do the 20% down again? I can see how this would be super easy if you had a bunch of other properties already, but when you're putting money into your 401k and aren't getting another 20, 30, or 40 grand in a year (or even 5, 10?) to put down another down payment, how do you keep purchasing these properties? Also, if you're taking out a bunch of loans, how are you able to make money when you're always paying others off with interest (especially if you already have your own house with bills and a mortgage)?

Some advice on others who have been there and have been able to overcome that would be incredibly helpful! I want to do this so badly, but the conversation revolving around money and who's paying for what is something that's really important for me before I can start the process. 

Thanks in advance :)

Edit: In case it matters, I'd be focusing on properties in Minnesota, ideally in the Twin Cities area for buy & hold

Thanks for the responses everyone! That's exactly what I was looking for :) 

Hmm..so then that brings an interesting point. So what if you have enough cash for the 20% down and need to get a loan for the repairs, how are you able to pay for the next purchase in a year? It won't have enough cash flow for another 20% and more repairs on another unit. Sorry if these are dumb questions, I appreciate all your insight!

Hey @Patrick Liska! Thanks for the response. Interesting, I suppose it's worth a try to see if they'd be willing to help you out! Sounds like if I found a 5 unit building rather than a duplex that this might be easier to achieve?