All Forum Posts by: Michael Breedlove

@Scott Ellis man, thanks for the insight. Really appreciate you taking the time to comment. I may need to go around to some local banks and get some more information. Doesn’t hurt to ask! 

@Tyler Wehrli man I appreciate you taking the time to comment. It does look like we are going to be able to get a conventional loan for a second property and we are going to hustle hard to get enough money for the downpayment on a SFR property. We'll move out of the 4plex and rent out our unit as well and get max market value rent bc it's been completely renovated. And in a few years, we'll be able to refinance the 4plex and be in a good position to continue our pursuit of financial freedom through real estate!

I appreciate the knowledge and I’m very grateful for those like yourself with more experienced and wisdom who are willing to share with others like myself! 

@Scott Ellis do the same parameters that apply to SFR apply to multifamily properties when it comes to Heloc?

@Angela Yan thanks for the comment. The main need for space is not necessarily for the babies themselves but for all of the things that come with having twins along with 2 toddlers and 2 medium size dogs. And the apartment style living is not ideal for a family our size either. Sharing a yard, having tenants above you walking around at 3am and sliding chairs around while you’re trying to sleep, not enough parking for guests, etc. But, you’re right, there may be areas we can declutter some things and we certainly don’t want to rush and make an unwise decision. 

@Raul R. great suggestion. Thanks for posting. It is something I have considered as an option. Renting a house the size we would need in our area would not be a cheap decision. And if we move out of our 4plex and have that 4th unit rented, the total income could certainly apply towards a second mortgage while still being able to set money aside for capex,  vacancies, repairs, etc. So, we are looking at houses and just may not be able to do all of the renovations that we would prefer to do immediately. But, may look to purchase something that she move in ready that we could do update soon little by little while living there over time. And then in 3-5 years sell the single family house and continue to pursue our real estate goals! 

@Stephanie P. thanks so much for all of the input. And thanks as well for the congrats! We definitely know the twins and all of our kids are a blessing from the Lord! And He’s going to provide the right home for us too!! 

@Stephanie Potter @David Cruice @Upen Patel @Kevin S. Thanks so much for taking the time to reply. Let me clarify. Currently, we owner occupy the 4plex and have a conventional loan for that property. It is looking like refinancing is not going to be an option for us. I’m going to have to find another way to get some extra money for downpayment and purchasing a bigger vehicle to fit our family. But, we should be able to qualIfy for another conventIonal loan and purchase somethIng more move In ready. A total of 4 kIds under 4 (IncludIng newborn TWINS), along wIth 2 dogs, & 2 adults is going to be pretty cramped where we are currently.

Thanks for the comment @David H.. I definitely wouldn’t try to do all the work myself. But, I am considering trying to find a house that’s more move in ready. 

Hey @Alexander Wardell, thanks for taking time to post. Yes, you do need a licensed contractor when doing a 203k loan. I own a painting company and have several friends that are licensed contractors. But, you may be right....just look for something that fits our needs that doesn’t require a lot of work might be the way we have to go. 

Thanks on the congrats! Yes, the 4plex currently cashflows positive after all expenses are paid and with only 3 units being rented and 2 of those units still being below market value. So, once we move out and rent out the 4th unit...that’ll be an additional $1,200-$1,300 that we will certainly use a portion of towards our next mortgage. 

We can get another loan for our next property and be able to potentially only put down 3-5%....but, was hoping to purchase a fixer upper that we could build some sweat equity into so that our goals for investing could still remain attainable. Not sure what requirements there are for a 203k renovation loan. But may consider that as well. We just don’t have a ton of money for downpayment. Annnnnd with the twins we also are having to purchase a bigger vehicle too. Ha ha