All Forum Posts by: Katie Ferguson

Cross posted*

I am in a unique situation and would like to know what you would do.

A little back story- My husband and I were in the beginning stages of building a new primary residence. My aunt filed for divorce, knew we would be selling our home soon, and needed a place to stay. This was in February of 2019. She wanted to buy our house, but can’t until her divorce is over, so we told her that she could rent our home until she could buy it and we moved in with my in-laws.

When the house sells, we will have about 60k in equity. Because we were planning on it selling earlier and using that money on our new home, we ended up with about 30k of building supplies on our credit card (10k is 0% interest, 20k at 12%).

I was initially planning on using the 60k to pay off the credit card, but I am just starting to build my portfolio, and wonder if it would be smarter to use that money to invest in a property. I am currently reading The Millionaire Real Estate Investor - there was a similar situation mentioned in the book, and they took the money and invested it.

What would you do?

@Michael King thank you for your reply! This is actually exactly what I was thinking. I really want to get into the game, but I would probably need a hard money loan for a down payment.

I’m thinking I could possibly avoid that with a similar interest rate paying off my debt slowly and using the 60k (or at least some of it) as a down payment.

@Mike V. Thank you for your response! :)

@Mike D'Arrigo do you like the Midwest for short term rentals or long term? Thank you for your response!

I am in a unique situation and would like to know what you would do.

A little back story- My husband and I were in the beginning stages of building a new primary residence. My aunt filed for divorce, knew we would be selling our home soon, and needed a place to stay. This was in February of 2019. She wanted to buy our house, but can’t until her divorce is over, so we told her that she could rent our home until she could buy it and we moved in with my in-laws.

When the house sells, we will have about 60k in equity. Because we were planning on it selling earlier and using that money on our new home, we ended up with about 30k of building supplies on our credit card (10k is 0% interest, 20k at 12%).

I was initially planning on using the 60k to pay off the credit card, but I am just starting to build my portfolio, and wonder if it would be smarter to use that money to invest in a property. I am currently reading The Millionaire Real Estate Investor - there was a similar situation mentioned in the book, and they took the money and invested it.

What would you do?

@Ken Latchers you are correct-I do not have experience with short term rentals. My goal for this year is 2 properties. I understand that it takes time to build a portfolio. My goal is to make a profit and avoid bankruptcy haha. Do you have a specific reason you say that or any advice?

@Michael Baum I am not in a vacation area and plan on using a property manager. I have not considered corporate rentals, but I am looking into it now! Thank you!

@Luke Anderson thank you very much -great advice! I I am from a small rural town with not much within a 3 hour radius, so I am comfortable doing long distance. I plan on hiring a property manager.

@Michael Baum sorry about that! I am specifically looking to purchase short term rental properties. I do not have a specific location in mind, but the higher the cash flow, the better. I am hoping to purchase 2/3 properties in 2020.

My goal is to build up to 50 properties. Where have you had the most success? I am open to any location. What is your best advice?