All Forum Posts by: Trever Jones

Thank you everyone for the advice!  I think selling my current home and using that equity toward the Duplex makes the most sense for my wife and I.  Maybe if I had more reserves I'd think about keeping the home but I like the idea of starting slow with one rental property and building from there.  Thank you again!

Thanks guys!  I was originally looking at my primary residence as a bad investment property but then I got convinced that maybe it was worth it because of the tax benefits, principal paydown and possible appreciation but I like your guys reasoning and I think I'll just sell it and put the equity toward a Duplex.  

Also that will mean I'll be able to put more down on the Duplex and I won't have to use the HELOC money for the down payment so it's less risk for me so I think it's the overall best decision.

Thank you again!

Hi all.  This is my first post on Bigger Pockets.  I've enjoyed reading through these forums and learning the past few months and I feel grateful that such an awesome community exists for people like me to learn about RE investing.

Here's my question - I currently own my home in Montebello, CA.  I owe $372k on the home and it recently appraised for $465k.  My wife and I would like to move to a nicer area so that we can have access to better schools for our son and also to just live in a nicer area.  

So we're looking at Duplexes in Eagle Rock, Pasadena, Glendale and Torrance because we're interested in becoming landlords and moving toward investing more and more. I currently have a HELOC that I obtained for $45k and that's from the equity in my currently home. I'm wondering if it's a good idea for me to rent out my current home and use the HELOC money to buy a Duplex.

Based on a little craigslist and rentometer research I think I could get $2k-$2,300 in rent for my home and that would cover my mortgage, taxes and insurance.  It would not cover the other expenses: vacancies, capex and maintenance, etc.  I would want to manage this property myself and use a service only to find a quality tenet.     

One concern/fear I have is that if I used all 45k of the HELOC money (which has a variable interest rate) and rates continue to rise, that the payment could get out of control.

What do you think?