All Forum Posts by: Corey Hawkinson

@Eddie D Estrada Welcome to BP from another Twin Cities raised person and former college baseball player, though I’m D-III and I’m not sure my 11 varsity at bats counts as a real player... anyways, back on topic... I agree with the others. You can certainly get started now and from what I understand you’re in a good market to start. You will have options if/when you move back to Minnesota. You could keep the property and use a property manager, you could sell it and use the profit to purchase something in Minnesota, or even figure out some other option.

I lived in Kansas City for 2 years and I did not purchase while I was there because I knew we would be moving. Hindsight is 20/20 but I regret that I did not buy while in KC.

@Joanne Hanson I can’t tag people from this phone but mark a 3rd vote for John.

@Jocelyn Kaufman If you’re trying to grow, use leverage but never over leverage yourself. You can decide for yourself at what point you become over leveraged. My leverage point (in terms of total loan to value) is probably a lower percentage than many on here.

@Jeff Kennedy I agree with this depending on the number of units you own. I own one as well that is currently being used by a tenant. Solid temporary solution and they fit in multiple styles of windows which works for me since the windows differ for me in 2 of my units.

@Corey Hawkinson luck. Obviously not lick. Don’t lick anything right now with Covid.

@Micah Haworth Welcome to the REI world from another Twin Cities investor. Good lick with the first offer.

@Ian Kugel Congrats! I hope it is the start to great things for you.

@Brett McManus Nice work! You’re off to a great start!

@Kristy Swenby I’m going to use oversimplified numbers in my answer, but I agree with the others that have said pay off the highest rate first while considering tax implications. I’m still in the growth phase but let’s say I was ready to pay things off for my example:

Home mortgage: 4% interest rate. Not large enough to help with taxes as I take the standard deduction.

Rental mortgage: 5% interest. Tax deduction.

Tax rate: 25% (making the numbers easier to follow)

At first glance it looks like the rental is costing me more, but considering the tax rate at 25% for comparison purposes that rate is 3.75%. So I would be better off paying off the personal residence first.

There is also the piece to consider how large each loan is because it will be easier to get the snowball rolling by paying off the smaller balances first, but I wanted to simplify my answer as much as possible.

@Benson Webb The above comments already covered my response so I'll just say welcome to REI from another Twin Cities investor.