All Forum Posts by: Martin Silverstrim

@Hart Pearson thanks. Food for thought. do you do LLCs? I'm still on the fence about umbrella vs LLC. I'm leaning towards no LLC to start and just increase my insurance.

@James Phan I would consider VA, but I don't plan on moving. My primary residence has a VA loan. I do encourage any younger vet I meet to go VA route, but do it as a house hack. Wish I had known about that 10-15 yrs ago!

@Marion Lee thanks. I hadn't considered that I can actually consider the actual rental income as income...I only thought of the rental income in terms of what my net ROI would be that could be put towards future down payments after I had set aside anything for vacancies, maint, and capex. Seems like alternating is the best decision.

@Todd Rasmussen thanks. Not opposed to alternating at all. Probably worth considering

@Ryan B. Thanks. Good to hear it can be done. My current plan is basically worst case scenario: using current liquid assets to fund first three deals w financing, setting aside 3k for vacancies/maint/capex from the start, and continue saving up for future purchases w my W-2 job and cashflow from properties. I have 2-5 years left before leaving my Guard service and DoD civilian job (both with pensions down the road, but secured as of end of 2021), so looking to keep financing risk as low as possible. My 'why' for REI is really to get more time with my family by obtaining cashflow producing assets where possible and work part time as my kids enter middle and high school. We're pretty secure for actual retirement down the road, but could use more cash flow and time now:)

@Josue Vargas I've heard that as far as conventional financing goes 10 is about as high as you can go, but with each spouse doing 10 mortgages we could possibly get to 20 properties that way. I've also gotten the idea more recently that it might be more like 5 or 6 that each of us could do.

Either way, the grand plan is to simply get my first property done through a turnkey...get my feet wet and learn a little more about how things work. Then purchase

another within the next 12-18 months. Then another in another 12-18 months. At that point, my current reserves/savings for down payments, closing costs, and about 3k for a reserve fund for each property will be gone minus any cash flow from the properties.

Somewhere after 5-7 properties I should be able to have enough cashflow to buy another property (with financing) each year.

@Lynnette E. We may do that as well. She's not as interested in REI as me, but is ok with me starting with a few properties. I'm hoping things go well and she hope on board full steam ahead.

Buying my first rental property in the next month or two. Planning on putting the mortgage in my name. If all goes well, we'll purchase another in my name in another 8-12 months and be on our way. After 5-10, we'll start putting them in her name. We do plan on doing LLCs. Anyone see My issues with this?

Definitely planning on 4 properties. We'll see about more, but want to leave the door open on the finance side. Have a good plan in place, I think.

@Will Fraser

Thanks hadn't thought of the lender having an issue with it, but I'll look into that end. Yes, I like the idea of rinse and repeat. I'm realizing more and more that I don't need to build up from zero every time once I get rolling.

We're purchasing our first rental at the beginning of 2020. I'm funding that through cashing out some stocks and using some savings with a 30 yr mortgage. Hoping things go well and looking to purchase another prior to the end of the year. I have enough that I could do the 2nd property down payment without issue, but if I'm looking at a third property soon thereafter I'd need to find another means of doing a down payment. We have about 110k equity in our house valued at 420k. I'm not worried about paying off my primary residence mortgage as my wife and I both have secure jobs. Any advice on using HELOCs for future purchases and then using cash flow to pay down the HELOC? Do you consider this risky?I just don't want to overextend myself. I think a property a year is reasonable. That said, with cash flow from two properties (and then three, I think I could come pretty close to being able to purchase a new property at least every 18 months between cash flow and additional savings, basically paying off the HELOC each time and repeating the process.

I appreciate your input as I'm new to this but am seeing my plan develop and move towards reality. Thanks