Snohomish, WA · Member since 2013 · 11 posts · 0 votes
What's going on everybody!
I'm brand new to this site and the real estate game as a whole. I'm looking for advice on a direction to get started in the buy/hold game. My goal is to eventually have between 3-5 or more paid for properties for passive cash flow over the next 15 years. I'm 28yo, married, with a great job and am debt free other then my primary residence. I am torn with how I want to go about financing my purchases because I really believe in saving up and paying cash for properties over time with the primary driver in that is the low risk of not carrying several notes. Advice? Tips?
Hey @Mike Lisenby welcome to the site! Looks like we are at a very similar position in life (I'm 28, married, great job, ... but about a million in debt, but that's mostly mortgages :)) I'm also in Washington State, down near Olympia.
As for debt vs. financing - it's a tough, and personal call. Obviously, using debt you'll be able to grow faster. However, the more debt, the more risk. Usually there seems to be a happy medium.
Finally, be sure to upload a photo to your profile, and be sure to set up Keyword Alerts for "Seattle" so you'll be notified when local conversations take place.
You're a good candidate for buy-and-hold. Debt can be your best allied if used correctly. There's a time to be debt free, and there's a time to go all in and borrow as much cheap money as you can. You're at the age where your career is barely taking off. Load up on several rentals now and try to maximize your borrowing limits. Once you reached to your desired 5th property, then you snowball all of your monthly positive cashflow into paying off one rental property at a time. After you paid off your 5th property, send 1/2 of the monthly net positive cashflow to me. :)
Mike in Snohomish!! I live/own triplexes down near the library on Maple (in Snohomish)! Buying the green house across the street from it currently. Not sure to rent out house and basement separate or tear down and build 4-6 units and/or a small commercial space - running the proforma's currently to figure it all out.
I'm 26 and engaged with my eyeballs up to debt, but all good debt :) (in my opinion). If you'd like to grab a beer or coffee sometime that would be awesome your the first one I have come across on here who actually lives in Snohomish.
Mike in Snohomish!! I live/own triplexes down near the library on Maple (in Snohomish)! Buying the green house across the street from it currently. Not sure to rent out house and basement separate or tear down and build 4-6 units and/or a small commercial space - running the proforma's currently to figure it all out.
I'm 26 and engaged with my eyeballs up to debt, but all good debt :) (in my opinion). If you'd like to grab a beer or coffee sometime that would be awesome your the first one I have come across on here who actually lives in Snohomish.
Right on! I'm pretty excited to get into it and would be awesome to meet up one of these days.
Hey @Mike Lisenby welcome to the site! Looks like we are at a very similar position in life (I'm 28, married, great job, ... but about a million in debt, but that's mostly mortgages :)) I'm also in Washington State, down near Olympia.
As for debt vs. financing - it's a tough, and personal call. Obviously, using debt you'll be able to grow faster. However, the more debt, the more risk. Usually there seems to be a happy medium.
Finally, be sure to upload a photo to your profile, and be sure to set up Keyword Alerts for "Seattle" so you'll be notified when local conversations take place.
Seeya around the site!
-So cool to see others from my area! Thanks for the advice!
You're a good candidate for buy-and-hold. Debt can be your best allied if used correctly. There's a time to be debt free, and there's a time to go all in and borrow as much cheap money as you can. You're at the age where your career is barely taking off. Load up on several rentals now and try to maximize your borrowing limits. Once you reached to your desired 5th property, then you snowball all of your monthly positive cashflow into paying off one rental property at a time. After you paid off your 5th property, send 1/2 of the monthly net positive cashflow to me. :)
Good luck with building your real estate empire.
-hahaha I'll keep you posted on the positive cash flow!
I think I may know you from Bothell? I graduated in 2007 but had some friends from your graduating class... either way I have two rentals in Bothell and am always looking to chat with like minded individuals.
I tried emailing you right before I closed on this current property but never heard back. I would love more info on the meetup you are organizing at grilla bites. That place has great food by the way. I am currently seeking a HELOC on one of my properties to get into a MFH.
Kirill: Last email I have from you was Tue 8/6/2013 10:23 AM, I responded with no responses! Perhaps your response was lost into cyber space! I make it to reply with at least a "I will get back to you soon" within 24 hours so if you don't hear from me give me a call! (206-571-5632).
Come to a meetup and let's chat! And/or let's get a coffee or beer!
There are lots of neat places in Snohomish the new bakery's place is great too. Thinking about starting a brewery with some friends as well - need to get my buddy to ween is way off amazon and make the food for us! Then we can have REI meetup's at the brewery ;)
Welcome to BP! You will find a lot of great information browsing these forums. As for myself, I am a wholesaler here in Seattle. We locate properties that are 20-%+ below market rate. We sometimes find great deal for fix and flip and cash-flow investors.
I'm right next door in Monroe hope to see you at a local meetup. I have gotten together with @Zach Schwarzmiller and the rest of the Sno County meetup crew. It's a great bunch!
?How often do you guys meet? I'm definitely just starting out but would love to grab a coffee/beer and pick your brains. How did you guys land your first property? Single fam home/condo/multi fam/duplex/etc? Did you get 20% down first or more? 15 year mortgage vs 30? Thoughts on out of state properties? (In-laws are in AZ and good home prices are still what decent condos are going for in WA, <100k) so really looking at that being a potential first goal. The other is dealing with my primary residence, purchased summer '08, owe $289k and latest zillow is $265k estimate, it's definitely moving in the right direction but will be awhile until I'm in equity in it. I have a fixed FHA @ 3.75% but have to pay close to $300 just in PMI. I can put away typically $1000/month +/- occasional overtime cash ear marked for investing (after other retirement funds have already been accounted for) starting January. Thought about funding a fairly conservative mutual fund to stick the money in until I'm in a good position to sign some house papers.
A bit winded, but thoughts?
The Snohomish County REI Meetup meets once a month currently. I seem to hear a slightly different story for how everyone got involved within REI and found their first deal. I bought my first triplex as an owner occupant taking advantage of a FHA 3.5% down 3.33% 30 year fixed loan. At the same time I also purchased the building across the street with partners where we had to go with a 1 year loan term for quick financing. We plan to refinance into a new loan within the next few months. We did not fear initial rise in interest rates so having a 1 year refinance or exit strategy was fine with us. I am also buying another property within the neighborhood where the owner is going to be carrying a 5 year note on the property with interest only payments. There are lots of options, as you can see I have three properties next to each-other all with different sources of financing. I typically pursue whichever will get the deal done J