All Forum Posts by: Ari Archer

@J. Martin Good ideas. Thank you. 

It is a single family home (2b/1br). I've definitely thought about building a studio in back. There is plenty of room and there's already water/electrical back there. Personally though, I don't think I could live in it. It'd be really tight with a girlfriend and a big dog. I have considered doing this ahead of moving so when I rent out the house, I'd have two units, though. 

So then I could reframe the options as:

1/ Use savings to build studio in backyard. Once complete, rent out studio or house until I can build enough capital for a downpayment for another primary residence. 

2/ Use savings (and patience) to find a good duplex opportunity that's cashflow positive. Keep my house out of it for the time being. When it's a good time for me to move, rent out existing home, potentially doing the studio at that point...

@Ryan Canfield thanks ryan. i don't think i need to get any equity out of my house. i see what you mean in terms of refi affecting debt:income though. good call.

i've thought about putting more towards the principal but at 3.75%, i could easily invest that $ for a higher return.

@Chris May congrats on closing. what's next? is your plan to stay in the rental indefinitely and buy a rental? or are you looking for a multi-unit that you can live in as well?

Hi–

I'm trying to develop a 5-10 year plan for myself. I see a few paths forward and am looking for some advice as I'm relatively new at this. Any thoughts would be greatly appreciated.

Background:

I'm 31, live in Oakland, CA. Have a 30y fixed mortgage @3.75% with 10% down that i'm 4 years into. Property value has appreciated significantly, as you might expect. I have been saving diligently as well – probably half the way towards a downpayment for a new property.

Path 1:

Refinance to 15 year, and work towards renting out my existing home. Looking at refi because expected rent would exceed refinanced monthly payment. If the market is still high when I begin renting it, I would likely rent myself until the market drops a bit, all while saving as much as I can, so I'll be ready to buy again when the market is better for buyers.

Path 2:

Keep saving and patiently look for a good deal on a rental property. Live in existing home until it becomes impractical (will outgrow this house when I have kids in ~6 yrs ??). Use rental income to grow savings and continue to invest in real estate without getting personal property involved.

Basically I think my question comes down to best use of my existing property. Is it best to hold onto it and rent it out when it's no longer the best place for me to live? Considering I bought it in 2012 (a much better buyers market), should I treat the property more as an asset and work to rent it out sooner rather than later?

Again, any advice would be greatly appreciated. Thank you.

Hi–

I'm trying to develop a 5-10 year plan for myself. I see a few paths forward and am looking for some advice as I'm relatively new at this. Any thoughts would be greatly appreciated.

Background:

I'm 31, live in Oakland, CA. Have a 30y fixed mortgage @3.75% with 10% down that i'm 4 years into. Property value has appreciated significantly, as you might expect. I have been saving diligently as well – probably half the way towards a downpayment for a new property.

Path 1:

Refinance to 15 year, and work towards renting out my existing home. Looking at refi because expected rent would exceed refinanced monthly payment. If the market is still high when I begin renting it, I would likely rent myself until the market drops a bit, all while saving as much as I can, so I'll be ready to buy again when the market is better for buyers.

Path 2:

Keep saving and patiently look for a good deal on a rental property. Live in existing home until it becomes impractical (will outgrow this house when I have kids in ~6 yrs ??). Use rental income to grow savings and continue to invest in real estate without getting personal property involved. 

Basically I think my question comes down to best use of my existing property. Is it best to hold onto it and rent it out when it's no longer the best place for me to live? Considering I bought it in 2012 (a much better buyers market), should I treat the property more as an asset and work to rent it out sooner rather than later?

Again, any advice would be greatly appreciated. Thank you.