All Forum Posts by: Aaron Mayo

I’m currently accepting applications for my very first rental property. It’s a 2 lvl condo, 2bed, 2bath. My questions is around what’s everyone experience with allowing cats and dogs in their rental properties? I’m allowing small pets, <25lbs and I’ve received a few applications that have dogs or cats. I’m not so worried about dogs and am more worried about cats. My place has been updated with LVP, 12mil wear layer so I think it will hold up to any pets having occasional accidents in the home. I just don’t want any crazy smells (I hear cat urine smell is strong) or damages.
I will be collecting a $50 pet monthly fee and $350 additional pet deposit.

Has anyone had any good/bad experiences with dogs or cats? Do you prefer one over the other? Any thing I should look for with the tenant? I appreciate your help.

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Columbia, Maryland

The C/O will be around 15-17k depending on the appraisal.
Option 1) Total cost: 5k (2.2k of it is for escrows).
Option 2 ) Total cost: 6.7k (2.3k of it is for escrows)

Without getting in too much of the loan numbers, I will be saving about $140 a month on option 1 and saving $20 a month for option 2. I'm starting to lean more towards option 2 now after doing more research on HELOC/HELO

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Hello fellow investors 🏡💸

First let me explain my goals in the next year or so. I would like to rent out my current place and buy another home by spring next year. The new home that I’m buying would eventually turn into a rental as well. For the current home, at the moment Im working with a lender to do a refinance to lower my mortgage payment. The options I’m considering are:

1) Refinance and take the minimum c/o for a refinance loan which is 2k in my case. Before I rent my place apply for a HELOC to fund my next home purchase

- Loan 2.875% 30yrs

2) C/O refinance the amount needed to purchase my next home.
- Loan 3.25% 30yrs, .375pts($862)

Let me know your thoughts, thanks in advance!

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Thanks Christian for the motivation! I plan on taking the first step in building a sprinkler system as you and your husband did! House hacking a multi unit or SF home is where I'm looking to begin.

Originally posted by @Christian Montalvo:

Hi @Aaron Mayo,

My husband and I have a significant amount of student loan debt (much more than you do) and we have steadily been building a cash flowing RE portfolio by house hacking over the past almost 3 years. The reason for building the portfolio was to help pay our student loans. We started with a 3.5% FHA duplex house hack that immediately cut our housing expense in half because the other tenant was paying majority of the mortgage. After 18 months we moved into a 4plex using the same strategy. When we made this move we eliminated our housing expense completely and actually started cash flowing. Sure a portion of the cash flow went into keeping up with our now 6 unit portfolio but it freed up more money in our W2 incomes to pay our loans. We have continued this process and are about to close on our 9th and 10th doors. This has actually helped us sustain a frugal yet normal lifestyle where we travel, pay for daycare and have been able to increase our student loan payments on average by $1000/mo. This is after all properties and average monthly expenses are covered. We treated the house hacking game like @Brandon Turner says... "you can either drag buckets of water or build a sprinkler system". If we were still paying what we could barely afford 3 years ago on our student loans and paying housing expenses we would be dragging buckets of water but now we are building a system that is actually helping us pay our student loans off faster. This technique is not for everyone but so far it is working for us.

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Thanks for the referral Jarrod! I will be looking further into this program.

Originally posted by @Jarrod Deshields:

@Aaron Mayo if you're in Maryland, check out the Maryland Mortgage Program. I think the exact program is called SMART BUY. They use student loan debt toward the price of the home. Up to $40K.

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Thanks for the encouraging words! Im ready to get started and yes, 2-4 unit property is the goal starting goal!

Originally posted by @Isiah Ferguson:

START NOW king. Everyone has there own path in this business, there is NO right way. Getting started is the best thing anyone can do. Grow through the head-aces of uncertainty and you will not lose. You either WIN or you LEARN. Personally, in your situation I would buy at-lease an 2 - 4 unit property. Live in 1 unit and rent out the others. In this case, you mitigate you living expenses or potentially live for free w/ cash flow in your own space. At this point, continue work your JOB and attack your student loans. As time go on, you can scale up as you may.

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I agree with you here Steven, in buying a multi family and renting out the units! I was thinking of looking for a foreclosure single family or multi family... Either way it will be something with a better rate of return than my student loans, as you and @Nick suggested. Thanks for you help!

Originally posted by @Steven Eitreim:

@Aaron Mayo.

Do what the smartest folks in the game are doing. Buy a 2, 3, or 4-plex as a primary residence, rent it out (including additional bedrooms in your own unit, if willing), and live for free or with a profit. Look for a value-add opportunity that you can refi in a couple years and pay off your remaining debt with that. Or, as @Nick Macklin suggested, invest in a property that gives you a better rate of return that what you're paying for your school debt, which shouldn't be hard if you find even a reasonable deal.

If you're really interested in getting in the game, don't wait. Do it now. Remember... each year that you delay investing in real estate, you're not losing the amount you'd earn in your first year... you're losing one more year of earnings at the end of your career, which for good investors, is counted in the hundreds of thousands, if not millions. Start now.

Good luck.

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Hello All,

My Background:

Age: Early/Mid 20s

Occupation: Information Technology

I moved back home with my parents a year ago, to pay off student loan debt($$$). In the next 3 months i would've paid off $33k+ in loans and would free myself of some loan payments ($220 back in my pocket). In total it would have taken me 14months to pay off 33k. I have more loans to pay off, about another $37k ( $480 monthly payment, already refinanced). My parents are also paying on $27k of loans that i shouldn't have to worry about paying, since they agreed to pay this portion.

My Total Debt 64k (Note: I only have to pay the 37k)

Question/Problem: I want to invest in a buy and hold property but I'm unsure if I should do this at the current time with my debt. I do plan on moving out of my parents home in 2019 (can't take living home too much longer lol, maybe until mid 2019).

Note: I spoke to Dave Ramsey on his show about this months ago and he told me not to buy a home and pay debt (he gave me the "your crazy" talk). In return this made me chop down 33k in 14 months.

My options that I've come up with are

1) Buy a single family home to live in for a year and then rent it out.

2) Buy a multi family live in for one year and move out when its full rented.

3) Move out after my 33k is paid off and rent until my the next 37k is paid off (This will take time).

I'm very fiance driven and also ambitious. I don't want to make any moves without being able to afford the risk. What should I do?

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All Forum Posts by: Aaron Mayo

Aaron Mayo has started 3 posts and replied 8 times.

Post: Potential Tenant w/Pet

Post: C/O Refi or Refi/HELOC

Post: C/O Refi or Refi/HELOC

Post: Should I invest into real estate with student loan debt?

Post: Should I invest into real estate with student loan debt?

Post: Should I invest into real estate with student loan debt?

Post: Should I invest into real estate with student loan debt?

Post: Should I invest into real estate with student loan debt?