All Forum Posts by: Douglas Orr

I'm getting a similar offer in the Midwest. Interest rate is just over 4% with a 3/1 arm with a 25 year amortization. Honestly, I don't have much faith in our or the world's economy. That being said, (based on speculation) I don't foresee the Fed raising interest rates. And if they do, a crash will cause them to lower rates to a possible negative interest rates. At which point we can refinance and get a sweeter deal, provided the housing market supports the refinance. My second contingency is if my interest rate ever gets uncomfortable for me I could always refinance the property back out to a 25 year loan and the new loan will be lower since I stretched the mortgage back out to 25 years. Good luck!

I too thought that $8k a month would allow me to quit my day job but as I get closer to achieving this I worry that the banks will stop working with me because I lost my "guaranteed" paycheck. I definitely do not want to stifle my growth because I retired a year or two too early. My new retirement monthly income is $15k to $20k (I'll decide as I get closer). Best of luck!

Welcome to BP! What are you looking for in a partner?

I bought my first two houses with money from my 401k. What I did differently than you is, I used my 401k loan as the down payments on two mortgages. I also bought multi family homes which typically net higher rents. Doing that I was able to pay all three loans back and cash flow nicely since I had five tenants paying my mortgages. Something to definitely consider is, do you have the capital to float the 401k loan while the house in between renters? Are you prepared to take money out of your pocket for repairs and taxes? Also, there aren't any penalties for taking out a 401k loan, only if you take a hardship cash out. Hopefully, you can figure out a way to make it work. If not, there are plenty of other deals out there! Good luck!!!

I agree with Debra Talley. Also, you can manage other's properties. There's no limit to how many you can manage. Have fun building your multi million dollar management company!

If you want to maximize your rent potential consider multi family homes. This strategy will allow you to have 2, 3, or 4 rents paying on one mortgage. It's not uncommon to have an $80k multi family home profiting you $800 - $1000 a month after expenses.

Jennifer Pletcher I love single family homes as well because of the great cash flow! I have a friend who swears by SFH. So, with a bit of luck I found a REI who wants to retire. I'm buying 10 properties at once from him! 10 SFH, one mortgage, best of both worlds! In the future I may try some flips for the purpose of generating money for buy and hold. To me, buy and hold makes a lot more sense than flipping.

This depends greatly on your relationship with your Father in Law. I personally borrowed money from my father to use as a down payment on a property. At the same time, I will never ask my Father in Law for anything (if I can help it) as he's the type of person who would hold it over my head. Something else to consider is; if things were to go south, what would Thanksgiving dinner be like?

Great to meet you! I was wondering if there was anyone local on here. I looked over your bio. Looks like we have some similar real estate interest! Do you want to be at 25 properties or 25 doors?

Doesn't seem like a dreamer goal at all! Depending on how aggressive you get you should be able to retire before 35. Or you'll find you want a little more coming in each month. Good luck! You're goal is definitely achievable!