New to the forum (Simi Valley, CA)

9 Replies

Hey everyone! Found bigger pockets through the podcast. My wife and I bought our first home in Simi Valley, California last year, and we are looking to get that paid off in the next 5 years then start investing in other properties. In the meantime I was hoping to start learning as much as possible and meeting great people. Looking forward to connecting. Thanks!

Jordan 

Hi Jordan! Welcome to BP. I'm down in Venice but am up in Simi all the time. Are you guys from there? I stay off Tapo Canyon a lot. 

Don't hesitate to reach out with questions for any of us over the next 5 years! :)

Thanks  @Ali Boone :

 We have the opposite commute :) we work in Santa Monica! We're just off tapo. We had been living in Mar Vista but we have 2 young kids and Simi was closer to family. 

I do have a quick question for anyone who has thoughts. We got a 15 year mortgage, with 20% down, but we are currently on a plan to pay it off in about 5-6 years.

We had talked about purchasing investment properties after we paid off our house, but I am wondering if we should start sooner. I am reading a Robert Irwin book which suggests buying a home every 1-2 years as your primary residence, and renting out the previous residences as investments. However, my wife loves our house and wants to be here for a long time.

All this being said, does it make sense for us to look for investments now? We are currently paying more than double our mortgage to get rid of this debt, but we could slow that down to save for a down payment on another house. However, my understanding is that if the investment property is not our primary residence, the financing will not be as attractive.

Any suggestions? Thanks again!

Originally posted by @Jordan Sugar :
Thanks  @Ali Boone:

 We have the opposite commute :) we work in Santa Monica! We're just off tapo. We had been living in Mar Vista but we have 2 young kids and Simi was closer to family. 

I do have a quick question for anyone who has thoughts. We got a 15 year mortgage, with 20% down, but we are currently on a plan to pay it off in about 5-6 years.

We had talked about purchasing investment properties after we paid off our house, but I am wondering if we should start sooner. I am reading a Robert Irwin book which suggests buying a home every 1-2 years as your primary residence, and renting out the previous residences as investments. However, my wife loves our house and wants to be here for a long time.

All this being said, does it make sense for us to look for investments now? We are currently paying more than double our mortgage to get rid of this debt, but we could slow that down to save for a down payment on another house. However, my understanding is that if the investment property is not our primary residence, the financing will not be as attractive.

Any suggestions? Thanks again!

Eek, are you in rush hour traffic every day then? And Tapo! Small world. My favorite $25/hr massage place is that one on the corner of Tapo and almost the 118 and my friend who's house I'm at all the time is just a couple miles past that.

The answer to your question should be fairly black and white-- just run the numbers. You want to figure out which path- sticking to paying off your primary or buying an investment property(ies)- will put more money in your pocket. Most simply, what is the interest rate on your primary mortgage vs. what you would earn on an investment property?

My hunch is the answer will be to pay off your mortgage. Maybe not, but with prices so high right now and interest rates on investment properties aren't at their lowest, my guess is you'd put more out on an investment property than you would save by paying off the primary. But it depends on what you want to buy too. But just run the numbers on the scenarios and see which one offers the best returns.

Hello! @Jordan Sugar

Welcome to BP, and congratulations on making the decision to invest in your future via real estate.

I have written a few blog posts that may help you get started here on BP, and with your investing. Please click on the links, give them a read, and share your thoughts in the comments.

First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:

https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bp



The second is a post that will help get you focused with your real estate investing goals:

https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciated

The last one is a post that will help you choose an “investor friendly” real estate agent. There are many agents out there, but it’s important to choose the right one.

https://www.biggerpockets.com/blogs/5868/52724-im-new-to-investing-how-do-i-find-an-investor-friendly-agent

I love answering questions if you have any! Good Luck :)

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