All Forum Posts by: Graham Kim

Thanks, everyone, for all your input! I've been researching more and reading all the comments and I'm definitely leaning towards a turnkey single family or duplex. Target markets are Midwest (Missouri, Indiana) and South (Tulsa/OKC). I realize that there's upside with a cosmetic rehab, but not confident that I can get everything done, especially as an out-of-state investor...

I spoke to some lenders and looks like my financials are sufficient to obtain a 30-year fixed at the target price range. Also been in contact with helpful realtors through BP. Where I sort of start spinning is getting overwhelmed at all the listings. I have my buy box so can plug numbers in but the "am-I-doing-this-correctly" or "what-if-the worst case-happens" creeps in and basically get analysis paralysis. I've been risk-averse my entire life (that's why I've been doing the corporate thing for 20+ years) so there's definitely some unlearning and training-new-muscles I have to do, which I think is the gruntwork Dave talks about on the shows. Any tips on how to get more decisive or quickly narrow things down? I was thinking of visiting those markets as well to get a feel, but welcome any additional recommendations!

@Melissa Justice and @Drago Stanimirovic - appreciate the practical tips and location suggestions! Sounds like your advice is the consensus: that if I were to proceed, prioritize a move-in ready unit, with a cosmetic rehab unit at most if the numbers+market checks out. I went through a kitchen remodel once and let's say that you can't have too much patience(!) so that makes sense to stay away as a first-timer going solo.

@Drea Na - my ultimate goal is retiring earlier than planned, with REI cashflow replacing my income and a portfolio of properties with increasing appreciation. One of the first BP podcasts mentioned that I should focus on building appreciation first (5-7 years into investing) then focusing on cashflow in the last 2-3 years, if the goal was to retire in 10-12 years from today. As mentioned, not in a place to house hack (which I think I have to live in) due to my family situation and the Seattle market in general, but definitely could pursue once both kids are in college or become independent.

Thanks, @Tony Bacon. Prudent advice, but intend to keep my current home. I know homes come and go, but the low mortgage rate I have on it plus the appreciation/size/neighborhood, two teenage kids, makes sense to hold on as I'll be done with payments right at 65.

Thanks, @Alecia Loveless. I have cash reserves (assuming I go ahead with one investment in the next 12 months) that can cover hits like that. Now, if I'm needing to cover multiple hits in a row, that's something I'm doing wrong, so hopefully I'm learning and paying attention here to not repeat mistakes or do what I can to mitigate risk. 

And just for context, I am looking out-of-state, but also started looking in-state, but opportunities look a little different in WA state and would be more rural/less dense areas versus the Puget Sound (which is Greater Seattle metro).

Thanks, Nicholas and that makes a ton of sense. I'm looking at markets that are first-timer friendly/approachable with properties that cost between $100k-200K so hopefully that reduces some vacancy risk? Where I'll need to be diligent is on accurately accounting for closing costs and having cash on-hand for maintenance/fixes as you mentioned. 

I would love to prioritize paying off the HEL first, but it's quite sizable at $400k/20 years (Seattle market appreciation was no joke) so was thinking dual tracking that and investing. But I could see that being a controversial approach for personal finance gurus out there?

Hi folks, I'm heavily leaning towards purchasing my first investment which will be a single family/duplex for a hold long-term and rent-out approach. I have a first mortgage on my primary residence and took out a fixed home equity loan a couple of years back for a life event (wen through divorce, bought ex out of family home). My combined LTV is around 60% and my DTI is probably right around 40%.

Does my financial position prohibit me from obtaining a conventional mortgage (I can put down 20% for my target market)? Does it change if I have an LLC and pursue a conventional mortgage that was versus as an individual? I know there are other financing options out there, but don't know enough yet to comment intelligently so all advice and perspectives are appreciated.

Hi folks, I always wanted to start something of my own, but all the "what-ifs" over the decades of my life kept me from taking the first step. I recently was chatting with an extended family member who is in real estate in a different country and that talk gave me the impetus to just go for it, so here I am, learning as much as possible. Located in the greater Seattle area, work in the tech industry. 

Hi folks, finally decided to get serious about investing so appreciative of a forum like this. I'm soaking up as much as possible, but wanted to get your perspectives for a first-timer also knowing that I'll learn a ton with my first. I'm leaning towards purchasing a single-family/duplex (<$200K). Should I look into a:

- Move-in ready unit
- Unit that needs cosmetic rehab
- Unit that needs significant work

Fully aware that with my budget, there may only be units that fit the bottom two criteria, but is that too much to bite off (esp. the third option) for a first-timer? Appreciate any advice if you were in my shoes and had to do it over!