All Forum Posts by: Christian Bors

@Kasey Ryan At first, the mortgage insurance really bothered me. But after looking at the big picture, who cares! I'm not paying the pmi, my tenants are. So don't get caught up on that little detail. Focus on the big picture. As far as the refi goes, I will probably refi in a year or two but only because I want to use the same strategy again. You are only allowed one FHA loan, but that doesn't mean you can only use the FHA loan once. Every 12 months you can move out of your current place and do another FHA deal. Gotta love this real estate stuff!

PMI is not an expense, it is part of the mortgage. Therefore, it should not be included in the 50%. Also, the purpose of the 50% rule is to quickly analyze a property. You should do your due dillegence prior to any purchase. Solely relying on the 50% is risky.

Great strategy! I recently bought a triplex using the FHA loan. With this purchase, I am bascially living free/making about 50 bucks a month. With the extra savings, I hoping to purchase my next property very shortly and rapidly grow my portfolio.

Good luck! And let me know if you have any questions regarding this strategy.

Awesome job!

How did you find this property? Also, how much was the rennovation. I would like to flip one day, but I am currently building my rental portfolio first. Seeing flips like this makes me want to change my niche, but I know I have to stay the course. Maybe one day.

I agree with joe. If it's only paint and carpet, it sounds like the mistake was made when evaluating the repairs. But again, 1500 over...don't sweat it. As a first rental, just chalk it up as a learning experience. Congrats on getting the first one under your belt!

Just curious, how did you find this property?

@George Carnicle As far as a heloc goes, there won't be any closing cost and you usually get a free appraisal. Most heloc are set at a variable. What I am seeing is about 3.25-4.25 depending on ltv and credit score. Now there is always an option to lock a heloc in at a fix rate. Depending on the length you are looking for, there are lock in rates at 3.99 for 10years. If you are looking for 25 years it will be around 5.8.  You should definitely call several banks. Some will offer you much higher rates then I am quoting but if you look hard enough, you will be able to find a good deal. 

The most important thing for you right now is to get rid of that 17% rate. You should call several local banks and I'm sure someone will be able to beat that rate!  Be careful with the credit cards. If you are sure you will be able to close that balance in 12months , it's a good idea. However, most cc companies will jack up the interest to 20-30% after that intro rate.

@Tim Mirra welcome to the site!

I just bought my first buy and hold triplex in camp hill. Make sure you attend some of the local rei groups and feel free to reach out if I can help.

George,

I am quite surprised a bank gave you a loan for 15k @ 17%. I am banker and I have to say that is crazy. Interest rates are still very low. Even if you have horrible credit, you should still be able to get something around 10-12% from a bank. As far as the HELOC goes, most banks will want a 6 month seasoning. However, there are some that will do after 3 months. The majority of banks will do a heloc on a secondary property for 70% LTV. You should EASILY be able to walk into any bank a get a heloc for 50k. I would recommend doing a heloc vs a refi simply to save on closing cost, but there are other factors you should consider as well.

@Dawn Brenengen @Mary B. 

Thanks for the input guys.

What I was trying to get at was if you had to pick one career, what would it be. I understand there is value in many careers, but I was trying to start a debate to see what people think. For example, say you just graduated from college, what field would you  want to join? 

For me personally, I am already in a field that exposes me to the industry. I am banker. This has allowed me to understand the financing aspect of the industry.  And with competitive compensation, this career has helped me progress fairly quickly into my real estate career.

Listening to the podcasts, Josh and Brandon have mentioned several times that newbies should get a job that's somehow involved in real estate.  This way you can learn the industry and educate yourself while saving money to eventually start your own career.  My question is; what is the best job for a newbie?  Is it a banker so the can learn the financing aspect?  Is it a property manager so they can learn the tenant process?  Is it an appraiser, real estate agent, contractor, commercial lender, insurance producer, handyman etc?  Obviously each position requires different skills and have different advantages i.e. compensation.  With that being said, what is the best job for a newbie who wants to develop their real estate skills?