All Forum Posts by: Matt J.

@Luke Grosskreutz

I couldn't agree with you more. I managed to pay one of my rentals off in about three years and am at about 40% LTV on the others. How'd I do it? Like you said, I pay extra on principal every month to the tune of 3k-4K. It's amazing how fast this builds. Sure my friends all drive new cars and I'm rolling a 10 year old F-150 but we'll see who finishes ahead.

Thanks for coordinating a great event, looking forward to next time! 

@Bill Goodland Great suggestion on using the HELOC for a cash purchase and then getting a loan after acquiring and paying off the HELOC. I've done this before and it works excellent. To all reading this thread just make sure you have the financial strength to cover a sizable HELOC payment.

@Michael B. @Marcia Maynard is on point. Disclose in writing and get their signatures acknowledging it.

@Adam Kennedy How big are the units? Beds? Bath? Garage? I don’t want exact location but if you provide and general area I can tell you what to expect in rents. I’m local and know Puyallup well.

@Brian Sullivan I want to add clarification. You’ve really asked two questions. Based on others comments in your state you’re required to have a real estate license to work as a property management company. This is the same in WA state. However you don’t have to be a Realtor. A Realtor is a member of the National Association of Realtors and is not a requirement to operate as a property management company (at least in WA). Good luck.

@Jovon Itwaru I’m going to echo what others have said. This does work. Example - I subscribe to CL rental alerts for a few cities around me. About 4 months ago someone posted a SFR for rent. I didn’t really feel like calling but I did and asked if they were interested in selling. They actually said yes but after more conversation I didn’t want the property. Right before getting off the call though I asked if they had any other property they were interested in selling. Turns out this couple owns over 40 properties, one of which is an 18 unit complex in my area. Long story short they were/are interested in selling it. I made an offer (extremely low) and they said not at this time. I’m still in contact with them monthly and I’m sure when the time comes I’ll get first crack at it. So yes, this is a way to get deals.

@Joel Owens I enjoyed reading your comments/insight, thanks for for sharing.

Am I the only one wondering why the title to this thread isn’t “Should I buy a primary residence or rental first?”

@Nicole Heasley two comments on this thread. 1st, I’d suggest visiting myfico dot com. This websIte wIll tell you exactly what factors determIne your credIt score. @Chris Ball your explanation is almost spot on. The only thing I’ll add is that the FICO scoring model looks at each individual credit card, limit and associated balance. So if you have two 10k credit cards and owe 1k on one of them you’d be at 10% of your limit on that one and zero on the other. It’s not a total available limit across all cards compared to what’s owed across all credit cards. Please don’t take my comment as an insult, I’m only trying to provide accurate information which is why I suggest visiting FICO’s website.