All Forum Posts by: Mike Robinson

Thanks all for the suggestions.

To the money community,

We currently are doing a cash out refi on our primary residence. We will get 50k cash and will have a 4.875% interest rate. We plan on using the majority of this money to pay off most of our current debt load as follows:

CC Debt $4,400 @ 22.74%

Car loan $32,000 @ 5.99%

New Roof $8,900 @ 7.9%

Student Loan $7,500 @ 3.38% this will not be paid off as the interest rate is lower than the cash out @ 4.875% so that will be paid off as quickly as we can. This and our mortgage is our only debt moving forward.

THE QUESTION: Is this the best strategy or use of this money or do we pay off the CC’s and go invest in our first multi family property? 2-4 plex is our thoughts. 

We look forward to the advice.

Mike & Tess Robinson

@John Leavelle Thanks for the reply John. The lower unit is a studio but we can get some rent bumps throughout. The challenge for me is the down payment of 101k as I have only 20k to throw at this. Do you know anyone who might like to partner up to bring the rest of the down? I would love to rehab the individual units as they become available and there is a basement that could potentially be a 5th unit.

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Need 101k down, I have 20k, fully rented now and its 3 min from my primary residence. We certainly could do some updating to get more rent and force more appreciation.

Money or the deal, which is first? My wife @TessRobinson and I spoke to a Listing Agent about a 10 unit Town Home Deal and put the numbers to her that would make the deal make sense as an investor. I would need to get financial investors to make the deal happen but I'm not sure in the order of doing things as I'm more of a take action guy and figure things out as we go along. This would be my first deal as an investor. So you true REI PRO's out there let me know if I'm putting the cart before the horse please.

Always the Best,

Mike

Money or the deal, which is first? My wife @TessRobinson and I "cleaned our truck" and spoke to a Listing Agent about a 10 unit Town Home Deal and put the numbers to her that would make the deal make sense as an investor. I would need to get financial investors to make the deal happen but I'm not sure in the order of doing things as I'm more of a take action guy and figure things out as we go along. This would be my first deal as an investor. So you true REI PRO's out there let me know if I'm putting the cart before the horse please.

BP4L,

Mike

@Justin Koehn I love your insights around getting paid for what you're doing.  Swinging hammers will pay you like someone who swings hammers for a living and doing the tasks of a business owner and investor will pay you likewise. That's just amazing advice right there and thank you for sharing it.

@Christen G. Thanks for the invite and warm welcome.  Good job for you snagging those MFH's and I loved the description on your "polishing" skills.  :)  We would love to connect with you for a Happy Hour and talk some shop.  I usually pick Tess up around 4:30 in Factoria and could meet up somewhere over there as we still have that lovely commute down South, ugh.

@Aziz Raji Thank you for the warm welcome and we're looking forward to getting acclimated in the forums for sure.

@Ryan Evans Thank you for the Welcome.  Yes it certainly helped 3 years ago but I just can't see spending the huge price tags for going up north and cutting into our investments.  Maybe at some point we'll move but I would much rather focus on investing and growing our portfolio at this time.