All Forum Posts by: Katie K.

@Scott Ellis Thank you for such a thorough explanation of what actions you took and how those actions fit within your greater plan. Noting the exit strategy was helpful too. Best of luck!!

@Alex Manley Thanks for the warm welcome! I just learned that I can get a new FHA after living here for 12 months. I can use the remaining time to live more frugally, save as much as I can, and research surrounding markets. I love how many options there are for this type of investing!

@Joe Pitrolo You're right, I have less equity than originally assumed, so I'm just gonna have to get more creative with this. I'm considering getting a new FHA after living in my primary residence for 12 months. Currently, I have a basement, but it's unfinished. Thanks for the advice!

Thanks @Matt Bamford !

@Christopher B. I have this same question. People refer to "paying down" the HELOC, but how did they get access a lump sum like that? I'm looking to use a HELOC for a downpayment on my first investment property, about $25k. There's no way I could just "pay it down". But I don't see many people discussing re-payment plans, using the tenants' rent, etc.

@Igor Avratiner Thank you for such thoughtful advice! I am paying interest each month on my car; in fact I make payments twice each month to keep the interest from growing too much between payments. It's not easy, but it's been worth it to see the principal shrink so quickly. I'll keep thinking about it.

Do you recommend a HELOC for first-time investors? I know that my 2nd and 3rd properties will go more smoothly, so I can arrange repayment to my HELOC more easily. But right now it's looking like the best option if I want to get started this year. Otherwise I'll have to wait and save, but that can lead to stagnation

Thanks Igor!

@Matt Bamford Thanks for the numbers! Is that a federal issues, or a state issue? Maybe the rates vary from state to state? I wonder why he told me 25%... And I was considering Pittsburgh because I used to live there, but I'm not sure if living far from my first investment is a good idea. Where are you looking?

@James Fisher How funny! I actually came across Connie my first hour on this site! She sent me the meetup email, and I have the event on my calendar. Thank you for the heads up though. Are you going to attend?

Hi everyone!

My name is Katie, and I'm from Morgantown, West Virginia. From the information I've gathered so far, I've decided to focus on rentals. While researching REI, I of course came across the BP podcast and their videos on youtube. The first video I saw was a handheld live stream of Brandon standing in a kitchen talking a million miles a second. I thought "Who the heck is this?!" haha But the more he talked, the more sense he made. I've since become a sponge, soaking up all the information and advice I can, from various sources. The 4-5 books whose titles kept popping up again and again in interviews are set to arrive on my porch this afternoon! (thank you UPS tracking) So I'm pretty pumped.

Some quick facts:

• I work full time.
• I bought my first home last fall with an FHA.
• My house appraised for ~$30k more than my loan amount, so I have a small amount of equity in the home already (I think that's how that works; correct me if I'm wrong)
• I've already spoken to my real estate agent about viewing investment properties, and she said "Let's wait until you get pre-approved." Fair enough.
• I spoke with my loan officer, and he was frank with me - I need 25% down on an investment property, period.
• He came up with some creative alternatives, like buying a "2nd home" in a destination location, which only requires 10% down. Or buying another primary residence in the same town, moving, and renting out my current home. He can get that down to ~4% down.
• I also came across HELOCs in my research. Since I have some home equity already, I could possibly use that to cover the 25% down on an investment property. Any advice on this is welcome!
• If I could rewind the clock 6 months, I would purchase a multi-family unit with my FHA and house hack. Hindsight...
• I also have an adjacent, but related question: Should I pay off my car, free and clear? I know that seems like a question for a different crowd, but it affects how much I can save for REI. I'm curious to know what others have done with their debt(s) to position themselves for REI. Is paying off your car a good idea? Because I have the money now, and it would put an end to the monthly payments. I just hate paying interest every month on an asset I can just own outright, especially when I'm venturing into REI. Any advice on this is welcome as well!

Thanks in advance to all who read this and offer some advice. This community is bursting with positivity and camaraderie, and I'm so excited to be a part of it now!

I'm definitely interested in this event. Weekend would work best. Hope to meet you all soon!