All Forum Posts by: Larry Littrell

I will try to make this as brief as possible but it gets a little complicated. After years of being underwater in my home i can finally get out without bringing money to closing.

My wife and I want to downsize and move. The question is sell or hold and rent.

2 loans=    265k first - $1700 payment

78k HELOC - $300 interest only adjustable payment but will be $650 when locked

Rent potential $2200 per month

House is in excellent condition 9 years old.

The HELOC is pretty much consumer debt from when we used to use our house as a cash machine (ugh).

Wow! A buy and hold expert, Podcast Rockstar and now she flips!!! Is there anyhting Dawn can not do??

First off I don't live in a submarine my home is financially underwater :)
Our story: My wife and I did the "charge up the cards then use your house as a cash machine" thing for 15 years and it worked great ....until it didn't.
We learned our lesson hard and we have stopped using cards and have been paying them off steadily.

Our Home:
Feb 2008 appraisal: $407,000
March 2010 appraisal: $248,000

Todays value: $305-310,000

Our Loans:
Primary Mtg $270k Under %3 interest Payments = 1700 (inc Tax and Insurance)

As you can see I could easily satisfy that with proceeds from a sale but....

HELOC 78k Interest only at %4.5 ADJUSTABLE Payment= $300

(Note:Option to go to fixed rate payment would go up to $725 month)

So I'm in it $2000 a month just for mtg payments.

Rental possibility= $1800-1900 month

We are now empty nesters in a 4 bedroom 2500sf house.

Eventually I want completely out. This house is not good for a rental. I would like to owner occupy a 3-4 plex.

Just wonder if the BP nation has any creative ideas. Right now I am working a second job to pay off our debt then I will focus on our HELOC and just pray rates don't go up.

@Lillian Mitchell

Hello and welcome from Monroe WA!

I am studying for my test right now. I have found a lot of difference in commission structures. I have found a broker with an 80/20 split and no transaction fee. I will probably do that until I get a little experience and complete a few actual transactions. This way the Managing Broker has more riding on my success. Once I get a little more experience I will pay the "transaction fee" and keep all my commission. I hold a full time job and want to use the MLS and be able to list houses as I can.

@Don Konipol and @Bill Gulley In Wa State Agents are called Brokers so I guess I would be a Broker/Agent. I plan to fix and flip eventually converting some of my purchases into rental properties. I am obtaining my license primarily for MLS access. However, I have a large extended family and also could turn some leads that I didn't end up buying into listings.

Another thing I was wondering about is if Agent/Investors used MLS forms to purchase their fix and flip properties?

I am currently studying to obtain my Real Estate Brokers license. I am also looking for my first fix and flip. I was wondering if those of you who hold a Broker or Agent license keep your business separate or integrate the two somehow?

@Mike Lisenby

I'm right next door in Monroe hope to see you at a local meetup. I have gotten together with @Zach Schwarzmiller and the rest of the Sno County meetup crew. It's a great bunch!

Maybe if we summon the podcast Gods (@Joshua Dorkin and @Brandon Turner ) they might have some ideas on a guest for the podcast who has a good system in place. I just finished The E-myth revisited so I am interested in this process as well.

Hey @Joshua Dorkin

and @Brandon Turner

The last two podcasts 37 & 38 have been awesome! I could have listen for 2 hours each!