All Forum Posts by: Jared Skov

What is your rate/terms on your current loan? I would lean towards taking a HELOC as long as the 2nd investment cash flows enough to cover your HELOC repayment.

@Wiley D'Spain Get your real estate license (about 2 weeks), then get a job making as much money as possible, not in real estate (this will help you get approved for a multi-family home in the near future). Do whatever it takes to live frugally, save, and read about investing/real estate. Once you have at 5% of a down payment saved up and a better idea of what area you want to invest in and your end game goals, house hack a multi family and continue working/saving. Do this 4 times over the next 5yrs, you'd be set in your mid 20's to do whatever you want to do, regardless of how little it pays. This method becomes much much harder as you get older, ask anyone in the REI game over the age of 40...

@Caleb Godsey Shop multiple lenders (at least 3), use their quotes against one another to see who can EARN your business. You're probably mid-4's or lower on an owner occupied MFH 15yr loan. It's all personal preference, there's an argument to both sides, but in this specific scenario, run the numbers of both, I like an investment being halfway paid off at 7.5yrs instead of 15...

Find a reputable accountant, this is too big of a decision to listen to someone in an online forum. A good accountant and a good broker are worth the money in the long run!

Run the numbers on a 15yr loan with 25% down and increased rental rates, you'll get a lower interest rate and increase your chances of FI/RE at a younger age. 

@Matthew Contreras

How much will it cost to complete the project? What are expected rental rates vs. how much your monthly payment will be on the construction loan? Contractors are extremely expensive right now, because they can be. 

@Mike M. Just so everyone is clear here: markets average one (14%) annual decline. Daily dips of 2%+ occur 5 times annually. Every 5 years on average, the market dips 30%+. Markets rise 3/4 years. Selling low and buying high never works, same goes with real estate. Never make important decisions based on emotion, this also goes for real estate as well as life in general. Market (stock & RE) dIps offer good buyIng opportInItIes, if you’re prepared...

@Joey Isidore How old are you? Buy and holds don’t make as much sense, to me, if you are 58 years old and nearing retirement. I started with a live in flip, then purchased a duplex as a long term buy and hold. I love the idea of investment properties being fully paid for by the time I’m 60 or younger. My stock portfolio is risky, my real estate portfolio is conservative.

@Joshua Elizondo I just went through this mistake. Tell them now that rent will be $1350/mo starting May 1st. We have long term renters and didn’t raise rent enough, they’re staying there, pay early, are great tenants, but we’re missing out on $400/mo cash flow because we weren’t aggressive enough. Offer them a 3yr lease option that still locks them into a ‘safe option’ but gives you better cash flow.

@Gabrielle Martin Contact the local construction equipment dealership sales people. More specifically, talk with the sales reps that sell the compact excavators and compact track loaders, they will 100% know some smaller contractors, landscapers, and owner operators who are looking for the exact job you're talking about. Coastline Equipment or Quinn Cat are the guys down there, good luck!