All Forum Posts by: Jose D.

Honestly, that's how I used to be when I was younger. I have a couple missed payments on my credit report payment history from that time. None of them were due to me not having the funds to make the payments or me intending to not pay them. It was just me being dumb and young, forgetting about them.

Automated payments are a blessing for forgetful people. I would keep her and keep pushing automated payments.

In general, is this a bad idea?

Looking at a triplex in pretty decent shape. Fully occupied so the light rehab wouldn't even be done right away. Would wait and do the rehab as each unit becomes vacant. 

According to the realtor, rent is 1.58% of the listing price. Haven't gotten far enough to negotiate but I'm thinking that can improve. Trying to secure funds for the purchase but I don't have the 20% down for a traditional mortgage (will not be owner occupied). Looking into hard money but I'm concerned that the refinance, if I only get ~75-80% loan to value, won't be enough to pay off the hard money loan and I'll be stuck in it for a while.

So I guess my question is, is hard money really only a good route when the rehab is pretty substantial? Since theoretically 75-80% of the ARV will easily cover the original purchase price of that fixer upper.

 Nah. 

He talks about it in the podcast I linked. The advantages I see over a traditional mortgage is possibly no money down and the ability to purchase fixer upper properties that a bank wouldn't finance. Would be interesting to compare the pros and cons of this strategy with the hard money lender route. 

https://www.youtube.com/watch?v=gvJZE8dNcxU

Episode 320 around the 32:00 minute mark

Brandon talks about a strategy that some investors use where they acquire a property with a line of credit on that same property they are about to acquire (not a HELOC on their main residence). What exactly is this called? I'm trying to research how one goes about doing this but I probably need to know what the exact term for it is first.

The market. I've been listening to BP podcasts daily for about a month now, and a lot of these successful investors got in at the right time. Right now it just feels like we are closer to the top of the market cycle than we are to the bottom.

I've been going back and forth about making this post because I didn't want to come off like I'm trying to be spoonfed. But then I remembered that getting advice and bouncing ideas off people is what this place is all about. So here it is.

We've kind of "acquired" a rental property recently. Not a traditional acquisition but more of a gift/inheritance (not a death or anything morbid like that). It's our current residence but we are planning to move out in less than a year. My question is, with one rental property in your backpocket what would your next move be? The current plan is to get a HomeReady loan as first time homebuyers, upgrade to a nicer house in a nicer neighborhood without going overboard (going from current 140k house to 175k range)*, using our current residence which can rent for 1k-1.2k to pay off the mortgage on the new house, save then reinvest in another property. One year occupancy, refinancing the FannieMae loan, then moving to another home is also a possibility since neither of us see this next home as our forever home. Combined yearly income of 110-120k. No multi-family as much as it pains me to pass on the househacking benefits they provide. We have too many pets for that, and have plans for children in the near future.

I was already interested in real estate before, but was looking at other strategies with the assumption that we didn't yet have a rental property and that our current residence would remain our current residence for at least another 5 years. I feel like we were incredibly fortunate to "acquire" this first rental property and want to take advantage of it. I think our current plan is solid but just looking for suggestions/advice to make sure there aren't any good options/routes that we haven't considered.

*house values on Zillow

Why specifically Austin though? Austin is a young adult's town, with a lot of stuff to do and that's usually what draws people there. For you, the main thing seems to be school districts though. San Antonio is only about 1 hour 15 mins from Austin yet much more affordable. You can find great school districts in the North and Northwest sides.

Why not find a more affordable city that meets your needs and keep the Silicone Valley property? 

Anyone?

Not sure where else to post this, so I'm posting it in the "Starting Out" section.

Am currently a W-2 federal employee and recently qualified for a public service loan forgiveness program. Basically, I am put on an income-driven repayment plan and I make payments for 10 years that add up to less than my total owed. The remaining balance after those 10 years gets forgiven.

My question is, has anyone else began investing in real estate while in one of these student loan forgiveness programs (not necessarily the one I am on as there are many)? And if so, did it affect your ability to remain in the program in any way?