All Forum Posts by: Travis L.

Why not do the 30 year and make payments on it as if it were a 15? That gives you the option of lower payments later when you rent it out, plus lower yearly debt payments mean that you can borrow more when you go to buy another property!

We did the 15 year option when we refinanced, which is nice since we got the lower rate and it will be paid off in 15 years, but it did make it harder to borrow more money since our payments were higher.

Just my 2c.

I honestly didn't factor in debt to income, great point with going for the 30 year!

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Originally posted by @Kiah Hochstetler:

If you can pull it off the 15 year always works out much better for you in the long run especially if you plan to hold onto the property for some time.

Kiah, thank you so much for your input!

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BP Community,

I could really use some advice on the best course of action for my personal home.

My wife and I are in the process of refinancing our house with the goal of obtaining a conventional loan and avoiding paying Mortgage Insurance (original FHA Loan with a 4.75% rate). Due to not having sufficient equity, we are able to obtain a lower rate and will even save some money on MI; paying a reduced MI unless we bring money to closing.

Here are the stats:

Current payment and rate: $1,807.23 w/4.75% rate

30 years at 4.25%: Savings of $230 monthly with MI

15 years at 3.5%: $1,868.83 (w/MI)

15 years at 3.625%: $1,821.84 (w/MI financed)

We can comfortably pay our current mortgage amount as well as the 15 year options, though part of our reason for refinancing is to enable us to eventually move and rent out this property (better cash flow), however now I'm considering is there more benefit in doing a 15 year and building more equity that can later be used to do a cash out refi or HELOC?

I have to have an answer by tomorrow morning so all input would be appreciated:)

Travis

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Originally posted by @Adaryll Gandy Jr:

Hello BP,

I am a 22 year old college student currently pursuing a business degree. I work a full time job as a Valet Supervisor and make around 30k+ per year. I really want to get into real estate investing but my income and lack of experience is a hindrance on me. I have been considering getting into a real estate focused career such as Property or Community management. My question to the community is if I am looking to learn about properties and management to help with my investments which route would you recommend? I do not want to become a real estate agent simply because I do not have a nest egg to fall back on or a well off family to support me. I need something that pays a salary while I learn.

Thank you for your suggestions!

- Adaryll

I stumbled into Property Management years ago as a Leasing Consultant and found that it definitely lends itself to Buy and Hold investing. Starting in leasing gives you an opportunity to earn competitive base pay and commission while you learn so many aspects of MFH. Just my two cents:)

1 Vote

Originally posted by @Elisa Seth:

Hello Everyone,

I am a licensed realtor in DC & MD. I am also about to work with my first investor and came to Bigger Pockets in the hopes of providing my client with the best service possible. I am also hoping to become an investor myself before the year is out.

I must say, Bigger Pockets is much more than I was expecting and I plan on going Pro, real soon.

I look forward to being a resource regarding real estate in general and for specific information, as it pertains to the DC/MD area.

Thank you to all for making this site what it is and to all that I am about to engage. Here's to a successful new beginning!

Elisa

Welcome Elisa!

I am also a fairly new investor in the DC & MD market. Best wishes to you on your desire to soon become an investor yourself. I'm a Property Manager by trade (8+ years) in MFH. I look forward to hearing of your success!

Travis

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Originally posted by @Ryan Dossey:

Keep in mind Muti is always harder to liquidate should you ever need to. Other than that if you've got the $$$ multi is my preference.

I'm definitely thinking it'll lribably be multi. Great articles by the way on your site. I love the Groccery Store Model!

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Originally posted by @Barry Herbst:

Hi Travis,

I recommend MFH. It's best to have multiple tenants to cover and mitigate your expenses. There's also a better re-sale value in MFHs than in SFHs.

Best,

Barry

Very good points Barry!

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Originally posted by @Josh Mitchell:

@Travis L. Congrats on taking the first step! I think the MFH is a better option for you, especially since you have prior management knowledge and experience. Would you rather get 4 different loans, appraisal, inspections, etc. for 4 SFH homes, or do that once for a 4 unit property? Good luck and keep us posted on what direction you go!

Thanks Josh! I definitely agree with your logic and am leaning more towards MFH. I will definitely keep you posted.

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Hello All! I am a new RE investor, though I have a background in property management. I have been in the industry for 8+ years and have managed upwards of 900+ units at a time. I have been a spectator who has fallen into the trap of "analysis by paralysis" but am at a place where I am finally willing to take action! Based on my background, I was curious to see if it made sense to start out my personal investment portfolio with a multi family asset or SFH? I'd love to hear your suggestions and experiences. I'm leaning more towards multi family although there doesn't appear to be such a large market in the DMV (DC, MD, VA) area for smaller assets (2-6 units).

Thank you in advance for any feedback!

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@Will_Barksdale Very encouraging, thanks for sharing! As a property manager in the DC area for 6+ years it always makes me smile when someone recognizes the true skill encompassed in what may appear to be such a simple position. Looking forward to your next success story and one soon for myself!

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All Forum Posts by: Travis L.

Travis L. has started 5 posts and replied 28 times.

Post: 15 or 30: Which way would you refinance your mortgage?

Post: 15 or 30: Which way would you refinance your mortgage?

Post: 15 or 30: Which way would you refinance your mortgage?

Post: Which career option would help most with REI?

Post: Hello From DC/MD

Post: SFH or Multi...that is the question!

Post: SFH or Multi...that is the question!

Post: SFH or Multi...that is the question!

Post: SFH or Multi...that is the question!

Post: One Small Success.