All Forum Posts by: John Barrett

@Brandon Kessler Unfortunately, the answer to this question is really personal, so it depends on your goals, desires and level of risk tolerance. In general (standard financing, nothing creative) for a loan on an investment property you'll need 25% down for investment properties and lenders will consider your debt to income (DTI) ratio to qualify you. The higher debt your are carrying both mortgages, HELOC & personal debt will impact what funds you can qualify to borrow.

You want to manage both your credit score and your DTI to get the best financing. DTI is less a factor if you have low outstanding balances or a really high income.

There are lots of lenders here on BP that can walk you through the what financing options are available to you and once you know that you can map out what investment strategy will make the most sense for you (based on your goals and sensitivity to risk).

John

@Michael Wallimann There haven't been that many in person meetups in the Everett area / north end following the pandemic.  There used to be a number of events, my wife and I attended a meetup at Bob's Burgers in Marysville but that hasn't happened for over 2 years.

Feel free to reach out if you ever want to chat about real estate investing.

John

@Sven T. We have used both WLA & RHAWA leases and both are good organizations.  I would suggest to you that the value of the RHAWA or WLA memberships are worth more than just getting the latest legally compliant leases.  Though avoiding an issue with the lease can save you a lot of money. Both organizations provide a lot of other benefits / value / resources. 

We started with the WLA membership and moved to the RHAWA.  The RHAWA training classes have been really informative.

John

@Alexa Intong I think this is a cool idea. Once a week might be tough to commit to but I would certainly be willing to participate.

John 

@Tyrone Lucas I understand the desire to payoff your mortgages and be completely debt free.  Based on your post it seems like you are looking to remove a large source of risk / uncertainty in your life.  My opinion is to keep the debt (fixed rater 30 year term) and have the cash flow pay down the debt overtime.

My view is that inflation will erode the value of the fixed debt and you will capture more of the gains and avoid some of the harmful impacts of inflation.  One way to feel more secure about this option would be to hold a sizeable (whatever amount allows you to sleep at night) of cash reserves.  While the return on the cash will be very low, it will be the buffer / insurance policy to mitigate any uncertainty you may experience in the future.  Having cash on hand to float you during a rough patch is the difference between a problem and a crisis.

John

@Kevin Reynolds feel free to reach out and I am happy to chat with you about our investing journey and the investments we are currently doing.

John

@Kevin Reynolds are you just looking at the Seattle / Eastside area?  Really like the idea but I focus investments north of where you are at.

John

@Richard Rio Congratulations on saving up $20K.  While that may not seem like a lot of money because prices in this area are high, it doesn't take anything away from the achievement it actually is. It takes a lot of effort to save money in a high cost of living area.

WA is an expensive area which leads many to look at out of state markets.  I would suggest that you look at alternate strategies like house-hacking or a rent by the room.  These types of strategies would allow to you get started with a relatively modest down payment depending on the city you looking at buying in.  There are a number of agents on the forums here who can answer pretty much any questions you have.

John

@Mike Sebastian I think your best path forward would be to start networking at local meetups. It seems like a lot more are happening as things start to open up. This would allow you to meet people face to face and build relationships with other investors. Most people tend to choose either LTR's or STR rentals so I think you will want to have different people to speak to regarding the issues that arise.

BiggerPockets, Facebook and Meetup are all great places to start looking at which groups are meeting and when.

John

@Trevor Murray It really depends on your specific situation but when I was starting out I used Turbotax for the first few years.  I found that program pretty easy to use / fill out and submit my taxes.

The more complex your situation, the more likely it is that you will need to find a CPA to complete your taxes.  A good place to start for getting references is your local investor meetups.

John