All Forum Posts by: Michael Fellers

Jacob,

Thanks for the affirmation. Congratulations on becoming self employed, that is written in my 5 year goal as well. I’ve been studying the exponential growth of leveraging debt for a while now, and I’m very intrigued. It just worries me a little bit with the state our world economy is in at the moment. 

Jack, 

I appreciate the constructive criticism, and I’ll admit that inexperience is something that describes me well. As far as the numbers and other information; I have a degree in business and have read dozens of investing book. I know that doesn’t account for much but I am fairly confident in my ability to look at numbers from an unbiased perspective and make a good decision based on the info I have. I currently have a full time job as a sales rep and make 2,500$ month after tax and 401k. My mortgage payment for my primary residence is 580$ but I pay 630$ which equals out to one extra payment a year. I will be getting married soon and my soon-to-be wife is more than willing to invest with me, but I don’t want to tie her name in yet to avoid damaging her credit if things take a led to turn somewhere. The market value for renting a 1000 sq ft unit in this area isn’t about 650/month Which would total 1,300 if both rented out with out problem. The estimated mortgage payment would be just over 800 I figured if i escrow tax And everything. I have about 5k in savings and 3k in my checking. 

As far as advice, is there anything you would specifically look out for or anything to make sure of before you put an offer in? 

Thank you!

Hey investors,

I'm getting ready to act on my first deal (extremely excited), but the funding is worrying me a little bit. I am looking to put an offer on a duplex in a small town outside of Lake of the Ozarks, Mo. There is a very large window factory being built just down the road from the units, and I don't think I'd have any problems renting out the units. It doesn't need much renovating, and I have a background in painting and trim. The asking price is 135k.

I am 23 years old and currently own my house and have 72k left on my mortgage and have around 35k in equity. I don't have the cash to put down any kind of down payment, so I'm going to get a HELOC for the equity in my house for the down payment and take a mortgage for the remainder.

Any tips or advice to keep me from making mistakes taking on this much debt?

Thanks in advanced

-Mike