All Forum Posts by: Alex Olson

Hello BiggerPockets Community! I am a Kansas City local and am new to real estate. I am excited to be here! I have been interested in real estate for several years when I saw my dad doing it. However, a couple months ago I was talking with some friends from out of state and was hearing all they were doing in flipping and renting, and I decided to go for it. They told me about BiggerPockets, so I started listening to the podcasts on my drive to and from work (I work at an Amazon warehouse currently). Right now, I am working on obtaining my MO (and then KS) Real Estate license, reading tons of books (I have a very long book list), listening to the podcast, doing some online real estate investing training, and doing lots of my own research. I am looking to start with some flips and then get into rentals as well. 

I look forward to learning from y'all! I am looking to get to know local investors, agents, etc... so please reach out! 

Hello all,

Thanks for taking the time. 

My wife and I moved into our primary house in Kansas City, MO, in March of 2019. We then had the opportunity in October 2019 to refi our rate down from 4.5% to 3.5% - which we did. Now we're considering refinancing again. We would like to eventually move out of this house and rent it out if the numbers make sense. Current average comp rent rates in our area according to Bigger Pockets Rent Estimator are $1,250. Our current mortgage is $1,487 and we have a 3 bed 2 bath. We have an unfinished basement where another bedroom and full bathroom could/will be added. 

It'll be approximately 3k to close on another refi. Here are the options from the lender we're in contact with:

- 30 yr at 2.99%; decreases mortgage $66

- 20 yr at 3%; increases mortgage $232

- 15 yr at 2.75%; increases mortgage $509

Should we refi? Should we sit where we're at? Am I crazy to even consider renting this house out? Would love to get thoughts on this. If we're planning on leaving very soon, obviously, it wouldn't be smart to refi. Ideally, the numbers work later on and we can rent it out. Looking forward to input and discussion!

Thanks for the tip @Alex Olson, I'll take a look at KC. Unfortunately for me, most of my circle live on the two coasts, so I don't have an in to more affordable markets (yet). I do have a close connection to a realtor here in Seattle who has sent me a couple options, but nothing that I like the odds on. My perspective on investing remotely is that I will probably not do it optimally the first time, but I will gradually learn what I need to know from the practice to get better. I'm willing to take a calculated risk to get the educational value of "learn by doing" for the type of investing I want to focus on even though starting locally would probably be safer training wheels.