Advice for a real estate newbie

5 Replies

I've just started to look into real estate investing and my wife and I need some advice.

We currently live in a home with an libor loan which is currently interest only. We've been making extra principal payments but our current required payment is only around $300 a month and we should probably be able to rent for around $1000.

We've been thinking about potentially moving from this house and renting it as our first property but we don't know what we should do with the loan. Keep it as is or refinance?

Remaining loan amount is $110k property value is around $160k

We are really new to real estate and have a lot to learn so any opinions from you guys would be greatly appreciated.

Now I'm just sitting here wondering what a Libor Loan is and how do I get one. Obviously not a long term strategy but interesting none the less.

Originally posted by @Kevin Harrison :

Now I'm just sitting here wondering what a Libor Loan is and how do I get one. Obviously not a long term strategy but interesting none the less.

 LOL. I guess that's what makes our scenario out of the norm since the interest only loan can create extra cash flow but since the rate adjust annually I'm trying to figure out what makes the most since long term.

personally I would decide how much you want to pay on the loan above the interest every month and how much you need to save  for maint, capex, turnover, vacancy ETC and then whatever the difference is goes into your pocket every month while someone else pays off your loan. 

@Anthony Hendriks

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