All Forum Posts by: Tim Sipowicz

@Joe Aamidor I agree! I already know the property well obviously and feel it’ll be a good learning experience to start my RE journey!

@Paul Shannon thanks for the insight and the real life scenarios you went through, very helpful! So a little background on my property, I owe 140k and it's worth roughly 190k with a mortgage of $1230. I should be able to rent it for 1500-1600, I'll obviously get a more solid reference point in the near future but talking to my agent, that's what we believe. There will be roughly 5k in renovations to get it fully tenant ready but after doing so, the repairs in the future and CAPEX will be relatively low but I'll of course still save and put aside for those costs. I just want to approach my next property correctly because we do need an upgrade sq footage wise for our growing family, but I also want to keep growing my portfolio so I don't know if getting into a more expensive mortgage payment, will be taking a backwards step.

@Joseph Cacciapaglia and to address the refinance portion. Is that something I should do to avoid the PMI in the next house or do I keep the equity in the first home and just use some of my reserves for the 3.5% down using an FHA loan??

@Joseph Cacciapaglia thank you! So I owe 140k on the property and on the conservative end, it's worth 190k. The mortgage on the house with PITI is $1230, should be able to rent it for $1500-1600. There is gonna be a need for small repairs prolly coming in at 5k to get it fully tenant ready. Would it be going backwards in my case if I were to buy the next house with a mortgage of let's say $1800 or so, cause we do need an upgrade in sq footage for our growing family but I also want to continue building my portfolio. So a sacrifice may need to happen need be with the next property, just want to approach it correctly to continue to grow.

@Sara Liskey also, I did get in with very little money.

@Sara Liskey thank you! One last question for you and I appreciate your insight but why do you suggest refinancing before so I can improve cash flow? Are you saying to get a better rate? Not to cash out refinance or take money out, correct? Would refinancing for a lower rate hurt my chances of possibly doing a cash out if I wanted to use money for the down payment on my next property? If I didn't do the FHA route that is

@Corey Hawkinson thanks so much for the real life scenarios! Awesome to read and very helpful, would you say this is an overall slow strategy in general?? I’m starting to believe it’s a good strategy and approach it I also want to figure out the avenues I can take while doing this approach, to purchase more properties and gain that traction towards our forever home. Also, am I going backwards if I purchase my next property I live in and it’s more expensive than the my first property? Just adding towards my monthly expenses.

@Sara Liskey I’m also not in the city of Chicago but in the south suburbs. If that helps at all

@Sara Liskey thank you for your input! My home is currently worth roughly 190k and I owe 139k. The rent would bring in 1500-1600 a month and my mortgage including all PITI is $1230. There are some minor renovations that need to be done that would costs about 5k to get it fully ready to rent. I have taken care of some major CAPEX issues including a new roof, gutters, soffit and fascia and new furnace. I'll be putting a new dishwasher and microwave in as well and redoing a bathroom, not a complete gut but mostly cosmetic.

I've been told twice now that using my primary residence as my first rental property would be a good move. I've thought about it and I'm starting to agree, I would just like some feedback on the approach I want to take. We were initially looking to sell our home and use the profits from the sale as a down payment on our next house. But now instead, hold onto the property as rental, buy a new primary residence with an FHA loan and get a little more sq footage for our growing family. My question is though, is it a backwards move to open a new mortgage that's just going to increase our monthly expenses with a higher payment? Also, how do I approach this situation correctly to keep building and acquiring properties after we get settled into our new home. If I need to clear anything up, please let me know because this may be a winded post. Thanks in advance!