All Forum Posts by: Tom B.

Agreed-Vanguard, Fidelity, Schwab .   Also read JL Collins stock index series (not sure I can paste the url). or his book: "The Simple Path to Wealth".    I have a ton of other recommendations so feel free to PM if interested.    Good luck.

Thanks Michael.   That last part about gathering notes-I think you were referring to wholesaling correct?  Sorry if I was confused 

Hello everyone,

Seeking advice on what is the best area in N Illinois.

I live in Lake Zurich Illinois and I'm looking to purchase my first investment/brrrr strategy close by.   However in my relatively  short  research (last few months) it seems properties that I could afford near me are overpriced, overtaxed or has less than desirable tenants.   The numbers just don't work out.  Because of this I started to look just outside of my area such as Rockford /Beloit area. 

I would consider investing closer if I can find something similar or better.   This way I could  at least have a chance to see the brrr process or get my hands dirty.  I work full time so it would be difficult to brrrr with it being an hour and half drive.

 Any suggestions would be appreciated.  I'm still interested in the Rockford/Beloit or anywhere else (even turnkey) if it doesn't work out.  

 Thanks so much.

Goals:  Brrrr process/ Long term hold/rinse repeat     Short term:   Have an investment by June of this year.

Criteria:  

1) 50k-80k SFR property    

2) 10k-20k light rehab  (most $ is coming from my HELOC so don't want to over leverage)

3) $950 to $1200 rent (trying to avoid D tenants/sect 8 on first investment)

4) Cashflows $200 or more with at least COC ROI of 10%

Tom B

Lake Zurich Il

Thanks Adeva!  Good advice.   Hoping to get at least 45-80k in equity then possibly (depending on the deal) use 20k of heloc for buy and hold.  Then refinance, pay off heloc.   If you disagree with this idea and see another way (I currently won't have that kind of $ for a while) please let me know.  Thanks!

Thanks for the heads up Dorian-the HELOC lender didn't mention that. I wonder how much of a hit I would take as that was going to be my down payment as I don't have enough to cover 20-25k for a 100k investment.

I also was thinking of using my HELOC to help me put down 20-25% on my first investment. I just read that it could hurt your credit? Anyone have experience with this situation? Wonder how much of a hit I would take

 Really great thread here-kind of in the same situation.

I have great credit, no debt, but also stretched so thin with my own finances that it will take me years to come up with 20-25% for a down payment.  

My 403b is not matched by my employer and I have been putting 300k down each month.  Thinking of using that $ toward reaching my goal.  Wondering if this is a good play.  

Really appreciate the advice guys!  Thanks so much.   

Aaron-thanks!  Yes, I've heard a lot about how living in your multiunit is best option for starters.  I wish I did that several years ago with my first purchase.  However my wife loves the house (with kiddos) so we probably aren't going to do that option in the near future.  Never know though.

Anthony-great ideas on what to do while I am waiting and saving.  Just checked out rentometer.com.  Never knew it existed and so helpful!  Appreciated!

 Follow up Q:   Should I worry about the inevitable recession or "correction" that loans will be too hard to get if I wait?   

Hey everybody,

This is my first  post and I am excited to learn from all of you.

After all my research I'm quite confident that I would eventually like to get into the buy-and-hold or lease swap strategy.  

I have a stable job, mortgage on my house (not a lot of equity yet), work full time and a credit score of 780.  The problem is I only have 12-15k in the bank and my income is stretched thin with mortgage, car payment, and what's left is put into my 403b.  I have no CC debt or other investments.  

That being said, everything I read and hear advise me to "get in the game any way you can with that first buy!",  but is it possible, (or practical) to get a loan if I can't cover 25%?  Should I pursue a loan without a 20-50k cushion?  

So far I have talked to two lenders who said I'm not ready yet and encouraged me to wait until I can cover a 25% down payment.   Of course that looks like the safe bet but  I might be on the sideline for a long tie as I'm not sure where I can find that extra income.   

Really appreciate any advice you could give!