All Forum Posts by: Eric Petersen

 Good number. How much do you live by that number as a golden rule? Also, in my case that would push me out a few more months on hitting my goal of getting a property relatively soon. Do you recommend to noobs to make sure they have all their bases covered or get out of being a renter sooner? Or do you have a completely different idea for this?

Hey everyone, in your experience, how much in costs do you expect to see in getting a brand new or fairly new place that doesn't require repairs? $2,000? $5,000? $7,500? I want to make sure I get enough money saved up outside of just the down payment. Also how often do you just roll up these costs into the mortgage?

 You do get into that whole idea of putting your money to use instead of just sitting in a bank account, waiting for it to hit 20%. Thanks!

 No doubt, I love the interest rates I was pre-approved at. Thanks for the advice.

I've been a renter for a while. Rent has always been increased when the lease is up. This raises a question I have, if you have an excellent tenant who says they will move if you raise the rent beyond a certain amount, would you fight to keep that tenant? Or just let them walk and find someone new?

Sorry, I wasn't explicit in my lending method. This will be my first property ever and I'm just going to go through a local, owner occupied bank mortgage provider that requires at least 5% cash down payment if you have the right credit. This would be for a rental property that I would live in for about a year where I'm renting out the rooms as well.

Hey all your smart people you.

Question on best ideas for my down payment on a mortgage. I am researching to get my first property. I qualify for 5% down and I almost have enough money to do that. Here is the dilemma. I understand if I wait until I have 20% down for a property I will avoid PMI, lower my mortgage payments, etc. I also understand if I get a property at 5% down I can lower my living expenses (no more rent since I'll move into the property and I will have renters in rooms to spread out the cost of the mortgage), get into a property that much faster, and get started on my dream of getting into buy and hold properties.

My question is, what in your experience would be the more beneficial idea: buy my property really soon at 5% or wait until I can pretty much pay the 20% down?

1) Mortgage

2) Motorized vehicles and retirement accounts

3) The first property will be a single family townhome that I will be renting individual rooms. (3 rooms other than my own, eventually 4 rooms when I move out for another property).

I want to keep this property in the longterm as part of my rental portfolio.

I eventually want to own several properties that I will rent out. I understand the merits of creating an LLC or some other legal protection entity.

Now at my point, I don't own anything though I plan to get my first property in the next few months and rent it out (owner occupied).

Do you suggest I create an LLC and buy the property through that? Should I get the property under my name and manage the tenants through an LLC? Should I worry about all of this later when I own more properties?

Thoughts please.

Thanks

I hope this question adds to the discussion. What percentage, margin, dollar amount above mortgage, whatever the rule may be, determines that you are getting good cashflow?