All Forum Posts by: Mitch Miller

Danny, Welcome to the Bigger Pockets and what seems to be your first steps in the REI.

First to address your question, Yes its a good start to use a primary loan to lock in the best interest rates and lowest down payments then later turn it into a rental.  It is also wise to keep some cash back for repairs and other costs that come with owning a home.  

I would suggest you look at this as a math problem if you plan on this house being an investment. There are plenty of mortgage calculators out there that can estimate your P&I payment. Then you will need to add in tax and insurance, tax can be looked up and insurance is fairy easy to estimate. From there since you are putting less than 20% down you need to add in PMI. That will give you your monthly costs at current state. You can add in vacancy, maintenance and property management to see your full burdened cost once you turn it into a rental. I would as yourself two questions, first does the cost of the property burden your saving and investing goals while you live in it? Second does the area support rents that make sense to eventually rent it out to your standards? I myself invest in cashflow but if you are banking on just appreciation then as long as those carrying costs are not too much and you feel confident that the properties are in the path of growth, go for it. Another opportunity is get roommates and house hack that way.

Best,

Mitch

@Manish Shah I have really enjoyed working with Mann, McGibney, & Jordan, PLLC. They always have everything ready to go and I can get In and out in as little as 15-20 mins.

@Manish Shah for what

Hey Marissa,

First welcome to Raleigh and the REI world! You should come to the Raleigh meetup tomorrow Wednesday 9/15 at the pickled onion off Glenwood at 6pm - 8:30. You will be able to talk to a bunch of different people: investors, realtors, flippers, wholesalers, and other first timers as well. Its a great event. You can find more events in the events area of the site.

@Josh R. Count me in.

@David New Celsius pays out weekly at an 11.55 apy so to answer your question a week? They do give themselves the option to change the rates every week. The good thing about Celsius is that they allow unlimited withdrawals so you can move money if they make a change that doesn’t fit your goals.

@Hunter Eason I’m clearly not Shelby, but real estate is a collection of skills and network. I would say if you can make it, it won’t hurt you. Will everything being covered make sense to you if you are completely new, no but you can ask people around you to help explain it and grow your network win, win.

@Jonathan Abbott as everyone else has said welcome to the community. Wish I came to your conclusion as fast as you with the corporate world isn’t for everyone. I would say the Raleigh has a good amount of meet ups that you should venture into. You will get to see some people that are making moves in the area.  I look forward to hearing about your success and let me know if there is anything I can help with. 

Well first off North Carolina is wonderful and you cant go wrong no matter where you pick.  The harder question is more addressing what exactly your goals are and your budget.  If you are looking for pure rentals and rental income, your best bet is Greensboro or Winston Salem in that order in my option.  Raleigh, Chapel Hill, and Charlotte are harder to get cash flow from.  They are definitely more of an appreciation markets.  There are always deals tho and if you look in the areas around them you can find some cash flow.    

Nice work!  How did it do vs your projections?  Where you able to squeeze more out of it or did you get effected by the issues going on?