All Forum Posts by: Stephen Fleming

Quote from @Caleb Brown:

I would do one thing at a time. Use the 20K as a down payment on the next house hack and don't touch your current properties equity. If you wanted to do a 1031 exchange down the road to use that equity and trade up then that'd be a good idea.

The homes I’m looking at buying are in the 330,000-350,000 range. I’d like to put as much down as possible with  conventional loan. Unless a different one would be better that you could suggest 

Quote from @Tim Delaney:

Is your new house going to be a househack? Or can it be? That would be a helpful addition to your plan as you would further reduce your cost of living.

Also don’t forget from that $600 you are planning on getting in cash flow you have taxes, insurance, maintenance, capex, and vacancy to consider.

With two homes, you may want to keep that extra $20k as an emergency fund rather than spending it on a third property and then be left with no emergency funds.

The $1,000 a month includes incidentals for maintenance and taxes etc. I also have 17k in emergency funds that I don’t touch. I don’t want to house hack as if I did that I would have additional expense for storages. I have several vehicles and lots of stuff in general and a wife that would not be ok with a duplex. 

I currently own a home but I’m looking to move and rent out my current home. My mortgage rate is 2.875% so I don’t plan on refi to get equity out. I have 100k in equity in this house and plan on using a home equity loan to get about 65k in equity out as a down payment for my next primary residence. New primary mortgage will be about $2500 a month, old house that I will rent out long term is $1000 a month. Plus about $600 a month for Home equity loan payment. I expect to get $2,200 a month for rent and will manage it myself. That takes roughly $600 a month off of my new mortgage. 

I also have money saved up for a down payment on another property. I’d like to get started with a Airbnb/short term rental in northern Michigan. I have about $20k saved up there but I do have a partner who is also willing to go in 50%

what are your thoughts??  Good plan?  Things to look out for?  Things you would do differently?  Also if there are other investors in the Detroit metro area looking to work together I’m interested in at least having a conversation!!!