All Forum Posts by: Tim B.

Morning,

I've got a question with regards to equity in rental properties. Would one be better off to pay a rental unit off with the income he/she receives from it or reinvest in another rental? It seems to me that paying it off would be a good deal considering it's a lot lower risk and you get more income with it being paid off. I don't know that I would feel comfortable owning 4 or 5 rental units all with loans and the possibility of them being vacant.

My initial thoughts are to get my house paid off (within the next 1.5 years) and purchase a multi-family home 2-4 unit to start. I was thinking that I could pay that off between my current job and the income I receive from it and move on to another once it's paid off. I figure I can pay a $150k loan over about 3-5 years depending on the income I receive from said unit in addition to my current job. I know this would take a bit longer to get more properties, but it'd be safer to start. I suppose I could have more units or loans once I had a few properties under my belt and a bigger safety net. My goal is to get enough rental properties to have enough cash flow to quit my job and do real estate full-time. I'll probably try to buy said properties on the low end, rent, and sell in the distant future once I'm sick of being a landlord.

Regards,

Tim

Thanks for all of the responses guys.

@Kyler Rice That's kind of a multi-faceted question. It depends on the neighborhood and the deal. What about you?

Thanks for the links and the info guys! I'll see what I can strum up through BP and the forums over the next few weeks before I start probing any further. My initial goal was to get the house paid off (August 2015) before I started investing in real estate, but that may change if the right deal comes along. I've just started looking at foreclosures and am planning on attending my first auction in March.

Not yet, but sounds interesting.

Afternoon!

New BP member here from KC, MO. I'm currently a firefighter/paramedic looking to get involved in the real estate scene. The only experience I have is the process my wife and I went through buying our house. I've got some construction experience from finishing our basement.

I'd like to help diversify my investment portfolio by investing in real estate. I'm interested in flips and rental properties (or so I think). Hoping to expand my knowledge through the BP community and meet some great people.

Cheers!

Sounds like a good event. I'm new to all of this, but hoping to learn more and get started soon. Do you guys know of any other real estate clubs in the KC metro or anyone willing to mentor a newbie?