All Forum Posts by: Andrew Stephens

Shani, congrats on starting your REI journey. @Michael Quarles talks about buyer scripts in one of his BP podcasts. I think you should save your money on Guru courses and spend more time at local RE meet ups. Good luck.

Martinis, I will send you a recommendation by private message. 

another nice thing about borrowing up to $50,000 from your 401k is that it doesn't show up as a loan in your credit report because it's already your money. 

 That can be a big plus when applying for a mortgage. 

You can cover over the existing tiles and the asbestos should not be a problem  there is a lot on this topic on the internet.  Here is an example:

https://www.thisoldhouse.com/ideas/asbestos-floor-...

Originally posted by @Pauline Hanuise:

You have to know that short term rentals such as holiday lets, Airbnb, etc... are currently being reviewed for more control by the government. Not only you will need the touristic license, which is harder and harder to get BUT the city is also currently defining some residential and touristic areas in the city.

That means that even if you buy a property with the touristic license, if in a few months, the government decides that you are located in a residential area, you won't be able to rent your place short term anymore!!!

Something you need to be aware of! Not many people know that and we still don't know which areas will be defined as residential or touristic yet... So lots of changes to come in Valencia and in general in big Spanish and European cities!

 Hi, does anyone know if there are risks related to long-term rentals in Spain?  My wife and I own a house in Italy and my understanding that it can be risky to enter into a long term rental in Italy because the laws are so pro-tenant that it may not be possible to raise the rent or even to get the tenant out during the tenant's lifetime.  That's extreme, but I'm wondering how pro-tenant the laws are in Spain.

This is really a question of whether you want your cash flow today or in the future.  Once you pay off a 15 year mortgage you will have significant cash flow. 

A 15 year mortgage will also save you thousands in interest expense and build equity faster. 

But a 15 year mortgage will also increase your debt to income ratio, which means you will qualify for fewer loans after this one. 

I think most people on BP go for a 30 year mortgage so they can use the cash flow to save up for the next investment. 

Before making your decision, take a look at the total interest paid tables on an online mortgage calculator and compare the monthly payments as well as total interest paid over the life of the 15 and 30 year mortgages.  

@Lucas Mills I agree that you are probably best served by a  buyer's agent for your first deal. But getting the license could be useful in the future. 

And the license doesn't have to be a long term monthly cost because you can always go inactive status with your state licensing agency and keep that status through continuing education requirements if necessary. 

@Ryan Marrs congrats on the purchase. 

Before financing at 30 years, take a look at how much interest you will save by financing for a shorter schedule like 15 years.  On such a small loan amount the  monthly payment won't be much higher.  

Properties like yours can be cash cows if you pay them off as soon as possible and then put that revenue stream towards buying another one like it.  

Too often people on BP assume that leverage is the best way towards growth. 

There was a thread on BP a few months ago where someone asked how many members were clearing $5,000 a month in cash flow. Many of the members who had that kind of cash flow owned low priced houses with no debt. 

There is no single correct answer in RE investing, but owning a few low priced houses with little or no debt can lead to a lot more cash flow in a shorter period of time. 

Good luck. 

I don't have a lot of advice but two questions I can think of --   1) how can you wholesale out of an estate?  

2) if the two houses have separate deeds, that probably makes at least one an investment property from the point of view of a lender. So that means you would need at least 20% down on one of the properties. 

@Ricky Grierson since duplexes are so hard to find in Maryland, you may want to explore buying and holding these two houses or buying and flipping them as a turn key to an investor.  

I just closed on my second Single Family and it is 90 mils from my house so I don't think a hour drive is too far -- it's realistically an hour plus to get from one side of the D.C. Metro area to another on most days, and my daily commute is 45 minutes.