All Forum Posts by: Justin Taber

This might work, I am sure that if you were looking for a true investment property you could find some numbers that work much better.

Good Luck!

I'd suggest to keep in mind that having a salary as a a police officer will help you when you are applying for mortgages and getting loans. As a realtor you are all commission so it will make it more difficult to get a loan with no history of income.

I always check craigslist and zillow rent to get an understanding on what the properties look like and what they rent for.  It is usually a good indication of what rent should be.  These are also the places where most people in central ohio go to look for places to rent.  

@Elliot Adkins Congrats on getting into real estate, it looks like you have some achievable and specific goals laid out for yourself.  We have very similar aspirations for growing our business.  My brother and I began investing about a year ago and we are up to 10 units here in central ohio.  I'd be happy to sit down and help in any way possible. 

Like you said you will likely get a lot of different responses and it depends what your goals are.  I'd just add to keep in mind that money is likely as cheap as it will be for a long time, and that you and your wife both have to be able to sleep at night so if being highly leveraged is going to cause too much stress its not worth it.  Something to think about! Either way I think its a great plan to buy at least one a year.

Find a couple podcasts that you think she would like and suggest she listen to a few.  It will be both educating and motivating.

Good Luck!

I have done one deal using this method in the past but I would also be very interested in seeing what other people have done, how it was structured, etc..

That being said.  I would highly recommend going to an attorney.  This did not cost much for us (a couple hundred dollars) but then it makes it legit.  This will not only help show your relative that you are taking this seriously but you will also be able to point to it in the future when you are speaking with other potential investors.

I agree, I would also add what is your goal with this property?  If you refinance 50k out you will be losing about half of your cash flow? When the tenant moves out how much work will you need to do to get it rented again? If you can't rent it right away would you be able to afford the additional monthly mortgage and insurance payments?

If you don't have anything planned for the 50k refinance, I would probably consider waiting a few months and saving all the rent money to have a nice reserve fund set up.

Good luck either way.

If you live with roommates make sure you volunteer to pay all the bills (internet, cable, utilities, etc.) and be sure to collect from your roomates to pay off the bills.  This will help your credit score and limit having a large history of payments.

Get a credit card and be sure to pay it off, building good credit will be invaluable when you go to the bank in the future.