All Forum Posts by: Kirk Graham

I’m looking at hooking up a washing machine in my house. I see hot & cold connections, but I’m wondering if the black pipe down the middle is a drain pipe for when the washer empties? Do I just cut a hole in the white plastic and stick the drain tube from the washer down the hole?

Thanks so much! Even though my wife is awesome and is open to anything, she and our three year old daughter would definitely be happier and more comfortable in the new home. I just feel the pressure of making a wise financial decision. But I agree, I don’t want to make a little extra money and have our family be in rough shape.

I’m looking at renting out our current home and buying a new home. When our current home rents, it should cash flow no problem. My question is whether I should purchase a brand new home (just built) for $250k (it already appraises for $265k). Or should I buy an older home for $170k, put $30k into it (now $200k in) and have it potentially reappraise for $250k? We don’t plan on refinancing and pulling cash out because 80% of the new appraisal is $200k, so there wouldn’t be much cash to pull out since we are only putting 3% down. With the newer home, we would have about $25k or equity right away, and with the older home, we would have $55k after repairs. If we are happy to live in this next house for years to come, and we’d be more comfortable in the newer home, does the equity matter that much? Thanks for the input!

@Tim Swierczek & @Jordan Moorhead Thanks for the replies! Super helpful!

When buying our current house, the plan was not to rent in out. Only in the last year have I been educating myself and decided to do rental property investing. 

My goal with our current house is to make sure it cash flows (doesn't need to be much, just can't lose money). I will factor in at least 8% for vacancy and consider managing on my own, but don't you save that money anyways just in case you want to hire a manager later? 

Also, yes, the plan would be to do the BRRRR strategy on this next house. We would refinance after the rehab and pull the cash out to do it again. Will banks only refinance up to 80% of the new appraisal?

Final question for now, have you ever seen a bank give a 3% down mortgage without moving into that property?

I currently own a home in Minneapolis, MN. I bought it two years ago for $223k (mortgage and PMI is about $1465 per month). My wife and I are looking at investing in Real Estate by buying and renting out Single Family Homes, also in Minneapolis.

Instead of putting 20% down on a new investment property, we are open to moving into a new home (only putting 3% down) and renting out our current house. 

I believe that I could rent our current home out for $2k-$2.2k per month. Our expenses would be the $1465 mortgage plus 10% ($210) for Cap Ex & Repairs, 8% ($168) for Property Management, 5% ($105) for Vacancy. That would leave us with $152 per month Cash Flow. 

While we rent out our house, we would try to purchase something for about $170k and put $30k into it (hopefully get re-appraised at $250k).

Is this a better approach than saving 20% down for a rental property and continuing to live in our current home? Any advice? Do my numbers look good?

Thanks!