All Forum Posts by: Melissa Harris

That's a good point. I didn't see it that way. I do need to focus on the cash flow and what it will bring me in the future. Good advice!

Awesome story! Finding that first deal can be extremely hard and time consuming but it certainly pays off once you find that property where the numbers line up. I hope I can do the same soon. I'm focusing on trying to find a good duplex or 4 plex to purchase, live in 1 unit and collect rent from the others but so far the numbers don't like up. I'll find one! Thanks for sharing! 

@codyl That's a very good point! 

Now how do you get a tenant out of a unit to where I am able to move in. Do I offer them cash for keys? What if they don't accept? Should I move onto another deal?

@jaredbouzek I did not know that! So you think it's best to just keep my primary but fully turn it into a rental and then buy the duplex as my primary and live in one OR should I just sell my primary get the $70k and just have the duplex?

@eric c. That's very interesting! Ill definitely pm you and get your lenders info. 

So do you think I should try to keep my primary as a rental, move out and move into one of the units in the duplex OR do I sell my primary and get the equity out of it and just have the duplex?

@ Jared BouZen at the moment I still live in my primary residence and have not had anyone live with me to show that I am collecting rent. So I think my first problem, right? 

And no I don't have much debt, the biggest debt I have currently is my mortgage and then my brothers truck which is $27,000 (this is the debt I'm trying to get out of my name but my brother has bad credit and so he can't take over the loan or pay the gap if I sell it) Other then that I don't have any debt. My credit score is 720. I am definitely going to talk to a few more lenders to see what they have to offer.

So I feel like I am stuck in the middle and don't know what would be the best thing for me to do. Here is my story and the dilemma I am in, I hope some of you are able to give me advice and guide me to the right decision!

So 2.5 years ago I bought my very first ranch style house for $210,000 here in Northern Colorado. It was a brand new construction home with all the bells and whistles, like granite countertops, stainless steel appliances, valued ceilings. It is a patio home (maintenance free living) 3 bedroom 2 bath home with a master suite, unfinished basement. Total sqft is 2,600. It is in a great location right across from a great school, also walking distances from a rec center, park and basement fields. 

My plan WAS to refinance my personal home into a conventional loan and then go buy a duplex, 3 plex or 4 plex AND then make my personal home into a rental and rent it out because it is in such a great location and I can get top dollar for rent. But the situation I just ran into when I tried to refi is that I wrote off to much on my taxes :( So I only have shown that I made $65,000 total in both years plus my debt to income ratio is a little high right now (working on getting that down currently) So I am in a possession where I can't go this route until I show more on my taxes and get my debt to income down. 

My second plan is to possibly sell my home, get the $70,000 (after I pay a $23,000 tax lien and closing fees, etc.) as my house would sell for around $290,000 and get the equity out and then go buy a duplex, 3 plex or 4 plex. The duplexes, 3 plex and 4 plex are selling for around $400,000 + in my area. 

What would you guys do in my position? I know that I have read and heard to NEVER sell any of your properties but I feel like it might be best in the situation that I am in to take advantage of the equity in my home, pay off my remaining debt and then live in one of the units and either have most of my mortgage paid for or have it all paid for. 

@Doug Emerson I certainaly do see your aspect of this deal. I like the way you approach it and how you figure if it is a good deal for you or not. I need to do a little more homework on this one and start running those numbers. Thanks again for the advice!

@Jerry Evans great advice. I didn't think about that. So in this case, would the net operating income be what I would net after all expenses? If so, is that $83,000 a good number?

So would that net operating income include all of those besides the property managerment fee?