All Forum Posts by: Mike Schoeffel

Quote from @Steven Foster Wilson:

Quote from @Mike Schoeffel:

Hey all. I'm a long time BP podcast listener, but this is my first time posting in the forum. 

Anyway, I'm set to close on a $100K HELOC within the next couple weeks. I'm interested in hearing some seasoned veterans' opinions on how best to spend this money in real estate investing to maximize my returns.

A few pertinent notes:

1) At least $25K will go toward a new roof and a well, both of which we desperately need.

2) I'd like to leave $20-25K untouched so I can pull from it in emergencies.

3) The other $50-55K is basically free game. 

4) I have an unfinished basement which I could finish and rent out. There's already one bedroom with a bathroom down there that we rent on AirBnB.

5) We also have a 200-square foot lofted cabin on our property (we have 16 acres) that we could install plumbing and electric in.

6) I'm interested in purchasing one or two long term rentals (preferably duplexes) that would cash flow 300-400 per month. I've run the numbers on several places that would meet that criteria. I'm open to ideas about this, though. My only stipulation (other than $300-400 monthly cash flow) is that the property is within an eight-hour drive of my home, which is just west of Asheville. 

So what do you think. Any ideas? 
Happy to be entering into the BP online community.

 If you buy another property then you have the potential to get cashflow and if you buy into equity eventually refinance. Through this, you would be able to then buy another property and keep the ball rolling or then use that money to refinish the cabin/basement but still have cash flow. 

Good advice.

The properties I'm looking at are cheap enough that I'd be able to pay them off within 10-15 years if I put an extra $250 per month toward the principal (in theory). 

So you think it'd be wise to cash out refinance after I've built up some equity in the rental, then use that money to snowball into another property? 

Quote from @Scott E.:

Sounds like the best use for that $50k is to finish your basement and finish that 200 sq ft cabin. 

Definitely an option. 

We could feasibly rent out the finished basement for around $1000 per month, if not a bit more. Though it may be hard to find a tenant because we're a little further out in the country.

The finished cabin we'd probably keep as an AirBnB, as we've been able to rent it out steadily even without plumbing and electricity.

I'd hope to have a little HELOC left over after finishing both spaces for a down payment on a rental. I also have about $15K set aside to fund a down payment.

Thanks for the info, Jason. 

Would a brokerage account with six- plus months of reserves in stocks work for the PITI?

Hey all. I'm a long time BP podcast listener, but this is my first time posting in the forum. 

Anyway, I'm set to close on a $100K HELOC within the next couple weeks. I'm interested in hearing some seasoned veterans' opinions on how best to spend this money in real estate investing to maximize my returns.

A few pertinent notes:

1) At least $25K will go toward a new roof and a well, both of which we desperately need.

2) I'd like to leave $20-25K untouched so I can pull from it in emergencies.

3) The other $50-55K is basically free game. 

4) I have an unfinished basement which I could finish and rent out. There's already one bedroom with a bathroom down there that we rent on AirBnB.

5) We also have a 200-square foot lofted cabin on our property (we have 16 acres) that we could install plumbing and electric in.

6) I'm interested in purchasing one or two long term rentals (preferably duplexes) that would cash flow 300-400 per month. I've run the numbers on several places that would meet that criteria. I'm open to ideas about this, though. My only stipulation (other than $300-400 monthly cash flow) is that the property is within an eight-hour drive of my home, which is just west of Asheville. 

So what do you think. Any ideas? 
Happy to be entering into the BP online community.

So I wanted to get everyone's take on this idea. I recently inherited $80K, and am considering buying a piece of property in Florida (St. Pete area or the Emerald Coast) and an RV/Airstream/Tiny home and renting it out as a vacation rental. I'm hoping to pay cash for most everything: at most, I may have to take out a $20-30K loan.

This is my first foray into real estate investing. Does anyone see any issues with this plan?