All Forum Posts by: Chris Marsh

One positive for leasing is lower debt to income ratio. I’m leasing two cars, one is worth $50,000 and the other $30,000. When banks run my credit, they only see what is owed on the lease, which is $10k per vehicle. Hence, lower debt to income. If I were to purchase/finance the entire purchase amount for both, banks would see a total debt of roughly $80k. That would make me less qualified for a home loan. Maybe I’m missing something, but I’m in contract on a home now and I can clearly see leasing helped my debt to income.

Hi Thien, I’m also from the Bay and work in the city. I’m under contract on a property in Indiana. I think it was my 10th offer that finally got accepted. I’ve been working at it since Feb. I have a great agent and property manager on the ground in Indianapolis who’ve been helping me along the way. I just gave them all my requirements, price range, west of Indianapolis, good schools and near hospital if possible, then checked address on neighborhoodscout.com to double check all the details of the area. I have a monthly membership on that site $100/month to check 100 properties. It’s easy to get analysis paralysis though. Let’s connect!

I’m under contract in Indiana as well and I’m also looking for a good insurance broker. Douglas, I’ll let you know if I find anyone worth mentioning.

Thank you all for the warm welcome and detailed advice. I'm pumped up and ready to take action!

I'm excited to have joined such an amazing community of like minded investors. I'm just starting out in real estate investing, but I do own my current residence in CA.

I have a real estate agent and a property manager in Indianapolis helping me search for deals and they seem like great guys from as far as I can tell. I'm also looking to connect with some folks on the ground in Alabama. I don't plan on buying something unless the agent and property manager agree on the purchase.

I'm looking to build a nice portfolio of SFH's and do my best to pay them off as quickly as possible. Maybe conventional loans on five homes with a goal of paying off two of them in seven years. I realize this might eat up capital for additional investments and slow growth, but it has more to do with how much debt I'm willing to live with.

Some things I'm struggling with:

1) It's tempting to pull the trigger on a turnkey home where the numbers are just below the 1% mark and the neighborhood is decent. At the same time, I keep reminding myself that I probably need to add value or equity to really do it right (easier said then done being out of state). I might just go for the 'move in ready' on the first purchase to minimize risk.

2) All I can think about is "will the property rent after I purchase?". I care more about that then a lawsuit, eviction or economic downturn. If I can find a good tenant for my first purchase, it will somehow justify all the insane hours I put into learning about real estate investing. 

3) I review suggested properties on the MLS that are in good neighborhoods and then check on zillow to see how many rentals are in the surrounding area. I'll find anywhere from 4 to 5 properties that have been vacant for rent over 60 days. Some are priced too high, but it definitely gets in your head when determining a neighborhood to purchase in. And sure enough, the house I was just looking at accepts an offer just days after being listed.

Any advice or words of wisdom would be greatly appreciated. All the best!

Hi Rich, 

You have a great story and it's definitely inspired me to pursue my first deal. I'm currently looking in Indianapolis and Alabama. My goal is to slowly put together a nice portfolio of SFH's and to do my best to pay off as many as possible as the years go on. All the best!