All Forum Posts by: Trevor Fritz

@Logan Hassinger

 One question and correct me if I am wrong - if I get a mortgage on the condo unit, can't I use that money for whatever I want? Why could I not use that money to leverage into another house? 

@Logan Hassinger

 I have not, thank you for the sound advice. 

@Devan Mcclish

 That is along the lines of what I was thinking. Since I have never taken this approach, your second part of the message was extremely useful for me moving forward. I may wait out the year and then look to refinance the property and continue to hunt for another deal. 

@Adrian Stamer

 got it - I was moreso looking at it as my investor/family member would be a business partner in the transaction, and not necessarily an investor. I see your point though.

@Logan Hassinger

 Yes that is correct. Would the bank have to know where that money came from? Hypothetically if the 40k was deposited in my account and then I used that as the downpayment. Is that a reasonable thing to do or would that be advised against?

@Logan Hassinger The terms were simple in that it was a relative that had an extra $40k that was sitting in the bank and I convinced them a 6% guarantee growth was worth their time. Because of this, I can pay it back in full when I sell or however I want. I am considering using the BURR strategy I just listened to from this site. 

- Refinancing at 70k - using the 40-50k in order to put a down payment on another house. Essentially owning 2 properties for only 10k of my own money down. Thoughts about this strategy? Leveraging too much together?

@William Powers wow that sounds like a great property in that you can rent it out for that price. I agree the HOA doesn't really do anything for me, but I felt the investment was just too easy to pass up. Especially since I could flip it for only about 5k in costs to fix up if something came up. Do you mostly work in the Gurnee and Waukeegan area? Interested in places in the North and NW suburbs.

This last month I bought my first rental unit. It is a first floor condo that I bought for $50,000, with the help of a private investor. I just rented it out for $935/month and will see some pretty positive cash flow. I only put 20% down (10k) and will be profiting about $4400 a year. 

There is a but though. . .

BUT... in order to get the deal done and before the price was raised to market value (70k+) I had to get a cash deal. I am paying my investor 6% interest, while not paying back any of the principal. Essentially I am paying $200/month to the investor + $225 HOA + Taxes. I feel that I am making a great profit for only 10k down, but by not gaining any equity I want to know if anyone sees any problems in this? I am considering refinancing and paying back the lender, but will most likely have to wait 6ish months, but could use my investors money in buying another larger property without putting any more of my own money down. Thoughts? Ideas? Thanks guys!