All Forum Posts by: Michael Phillips

Hello all,

I live in the greater Kansas City area and would like to move to a new primary residence but do not want to mess up my plans of buying rentals. I currently live in a home that would make a good rental that I owe $35k on. The house is worth around $175-$200. I ultimately would like to start off in small multi family so not sure what I should do with this house as to not mess up my debt to income for rentals. I could cash out refinance place the down payment on a new primary and rent the old house this should leave enough money to buy one or two more. I have also thought about selling so I can gain access to the 20% I would have to leave in the cash out refi. I have yet to speak with a bank about all of this because I want to be somewhat knowledgeable of my options before having that conversation. My debt to income is very low. I make $120k-$140k/year and owe the $35k on the house and $12k on a truck. Let me know what you all think I’m trying to have all my ducks in a row by early spring time

Lots of good points to think about. I’m considering setting up the heloc just to have extra if I find a deal I don’t have all the cash for. I can save $30k per year. I’m not totally against risk but if I can come out on a similar trajectory with less risk than another than I’m for that path.

@Bill F.

This is where my fear/ debate is my current annual expenses on my home is slightly under $6k. From a risk management perspective, is it the same risk, to my home, to have a mortgage on an investment property, with a down payment I saved cash for or to pull the same down payment out on a heloc?

I’m trying to make a decision on how to get started in buying the first investment deal. I have a $130k paid in full personal home and I’m nervous about putting my home at risk by leveraging it if I have a deal go wrong. Are my fears rational? Would it be better to save a down payment and leave my home out of all my future deals?