All Forum Posts by: Ethan McRae

@Michele Wax When you say 

"do a heloc....continue paying off the first at the regular payment and get the new one down asap....rinse and repeat" do you mean get the heloc to buy your next property? 

@Stephanie P. @Michele Wax Solid advice guys I appreciate it !

@Keleisha Carter absolutely!

This is really basic stuff for most of you but I gotta ask...

For someone who is just starting out and is looking to buy their first property, should I be looking to essentially get financing with high monthly payments in order to pay off the property and build equity ASAP or low monthly payments to try to generate as much cash flow.

For instance, on an FHA loan, there seems to be a 15 year and 30 year option. Would the 15 year period with relatively lower interest but higher monthly payments be better for a new investor or a 30 year loan with lower payments but higher interest?

My gut tells me that for someone just starting out, the 30 year would be preferable. I think I would want to play it safe and try to get low monthly payments just in case worst comes to worst and I end up having to pay off the loan for a few months out of pocket at some point. Plus by trying to get as much cash flow as possible I can theoretically save up faster to buy the next property.

Is this thought process logical, or am I thinking about this the wrong way?

Many thanks

@Jeff Brower @Michele Wax Thanks guys I appreciate it 

Hi all,

I read this awesome BP article here

https://www.biggerpockets.com/blog/2015/03/25/fha-...

but I have some questions I was hoping to get some help with.

In the part where Lee says:

"you will not be able to get another loan until you have two years of landlord experience with that home on your taxes",

does this mean that you have to wait two years while being a landlord for that property before you can get ANY second loan or just another owner occupied loan?

If I bought a duplex for my first rental property, if all went well, I think I would want to dive into buying a second property not too long after. Is this feasible when purchasing a duplex with an FHA loan?

Thanks

@Nate Marshall Ah I see- that makes perfect sense

@Brian Metz All good advice. When you say "different than a traditional cap" do you mean that commercial property cap rates are different than residential/ traditional cap rates? if so how come?

 Thanks for the advice. Could you explain more in depth what you mean when you say 

"Multi Family doesn't have the same risk as single family when the market contracts. It's like .6 of a percent for foreclosures when in 2008 single family homes 3%."? 

@Joe Villeneuve, @Bill Plymouth, @Theresa Harris,  

@Michael O.

@Bjorik Mutize

Thanks for the advice guys, I really appreciate it