BP n00b from Chattanooga TN
Hello BP.
I have been a member for a very short while but plan on getting engaged to the platform as a useful resource. I live just outside of Chattanooga TN in a rural area called McDonald (e i e i o).
I have no current rental properties, however, I like many others have great plans for my future (and the future of my wife and 5 month old son). Our home was purchased using the help of a contractor friend as a tornado damaged single family. We now stand two years later with approximately $45k in equity that could be realized quite quickly.
I have a degree in accounting and work in the private sector analyzing accounts and business activities on a daily basis. This has given me a large amount of business knowledge in a short period of time. I have managed payroll, payables, receivables and financial statement activities. Needless to say I am researching furiously the various ratios, cap rates, and terminology of this investment opportunity.
My long term investment strategy is simple, bread and butter single family homes in desirable neighborhoods purchased at 10% or greater beneath their values and rent them long term. My game plan consists of requiring 4 paid for properties with all profits going toward future investments. The only issue with this plan is it will take an estimated 17 years to complete the downpayments and full-payments on these 4 properties......my estimate....So unrealistically I want to get into more delicate options such as multi-family but do so cautiously....I am researching and waiting until I can cash flow my first down payment.
My question to whomever would like to respond: We plan to sell our single family home due to the fact that we would like to move closer into the city and we can either roll our equity into our next home by reducing the costs or roll this equity into possibly 2-3 down payments for single family homes and using a VA loan for our next home to avoid PMI (the devil itself).
Comments and questions welcomed =)