All Forum Posts by: Mark Tiersma

I didn't realize this thread was residential sided. Thanks. 

I also didn't realize a mobile home/rv park as being commercial, I know I didn't disclose that, but you are right 5+ being commercial. 

Is it possible if the owner carried the loan they would expect a 25% down as well?

It's like I can see a great property but it's out of reach.

So Here I (we, my wife and I) are.

We live in a hot market. Every month they set new records for the average home price.

We have no debt, in 2013 we bought our first house, sold it in 2015 and made enough to pay off our debts, approx $75k.

We are renting, we have saved a lot of money, we want to put it to work but get into a home again.

My wife has a great job, pays well. I had a good paying job I quit for moral/ethical reasons, and now drive Uber/Lyft, as well as side gigs. (Long Story short) Our credit score is excellent. Last checked was high 700s, low 800s.

HERE WE ARE: Found two properties we are interested in, each have quite a few units 7+ that are in good shape, long term tenants, may offer good potential for adding to them, and potentially could get us out of renting... live in one... 

The problem is this, they are listed at $950k. I'm not worried about the debt because I know I can make positive a decent bit each month. How do I get funding? 

My thoughts are that a lender would consider the rental payments from the property each month as income, which could put our income up around $150k/year.. at 20% down 5% interest payments would be $4100/mo. We only have about 10% down payment in savings. Considering the incoming rental payments would be approx $6k, It seems like it could work. I need to do due diligence. But I'm halted at the how to finance it wall. Would a lender loan that much to us in our situation?  

You miss all the shots you don't take...

Great words to live by IMHO.

Personally, "the answer is automatically no, unless you ask / or try" is burned in my mind for eternity, and drives me to try new things, ask questions, and pursue continual improvement. -easier said than done- especially in rough times.... but the rough times shape us, and we learn which is exciting in a way. 

Thoughts on my mind...

Thanks everyone for the input, very interesting point that there's a lot of 1031 money out there, but would investors buy a property with their 1031 money even if its not a good deal just because of the time restraints with doing a 1031? 

Hey Oregon locals! I have been watching multi-family homes for a while now in central Oregon, and the Willamette valley. Some are intriguing others to me are seemingly appalling. I am considering house-hacking a four-plex to get started in real estate investing, preferably in central Oregon, but using the 1% or especially the 2% rule it makes no sense to me. From what I understand many of these could work but it would mean putting in a large down payment, lowering my mortgage payment, thus producing small cash-flow or breaking even.

A few I've seen on the market a while; one is listed around $270k for a duplex, when I drive by to check it out, its in terrible shape- don't get me wrong, I would love to rehab a place but the numbers need to work right? This particular duplex had nothing good to say for it other than I believe a good location. I'm not sure I can go off of it but the county records value the land at $77k and total RMV of $140k. If I could purchase it low then Brrrring would make sense. I would like to be able to buy and hold while cash-flowing, for now I work a full time job, and struggle with building a strategy -finding the right opportunity- to get real estate investing started. I am ok with making mistakes, and want to learn from them, but believe that a deal needs to make sense, and what i'm seeing on the MLS isn't making sense as a good deal. Am I crazy in thinking this???

Merry Christmas Everyone!

Thanks for the welcome everyone!

@Karen Margrave Thank you for the invite! I want to attend for sure though I am not able to make that date this upcoming month, I will look for more in the events section. 

@Josh Garner That's very interesting, I do not own a home at this moment, we sold our first home in 2015, and have been saving as much as possible for jumping into our first deal. We are considering getting into a duplex or a four-plex, and live in it for starters. There is one property for sale on the MLS in Prineville that has my interest though the price may be a bit high, but it has three separate building being rented out. So something like that might be a great option for us to start out on. I'm anxious in two ways, anxious to get started, but anxious from the load of information out there from opinions, to strategies, to methods none of which I have at this point because of a lack of experience.

Thank @Brandon L. I will cruise through those links. So far I've been listening to the podcasts on the way to work.

Awesome!

Hi everyone! I'm Mark T. and I'm here to get started with potentially networking with folks, learn a lot, and get the ball rolling in investing for my wife and I as our long term goal is to not have to hold a 9-5 job to make a living. Some call it leaving the rat race.

A little history about us financially. We are both 30, my wife went to OSU and I went to trade schooling (pilot/mechanic) and aquired debt that we have been fortunate to focus and work hard enough to pay off, partly from the sale of our first home. An now we find ourselves ready to take some risk in creating cashflow. Over the last 5-6 years I have read and listened to the various rich dad poor dad books, and listened to may videos and podcasts from bigger pockets. The hardest thing for me is to make that jump when I don't know necessarily what i'm doing. But I think with other investors help and advice I can get this ball rolling. For my wife and I our eyes were opened after selling our first home, though the odds were in our favor, we bought a new stick build home for $150k in Bend, OR in 2013, and by 2015 we had to sell and move to Salem to help my parents with their 3 buisinesses. This was a blessing for us, because we owed about $70k in debt from past schooling, and when we sold our home in 2015 for $233k we walked away with just enough to wipe out our debt. WOW! What a load off our shoulders, BUT! we recognize the pro's and con's of good debt and bad debt. That $70k in debt was not making us any money at all. So we have been saving money for our first investment. It's difficult for us newbies to find opportunities when the real estate market is up. 

Some of our goals are to move back to central oregon, potentially starting a family, but start building investments not only for building wealth, but mainly cashflow. We are excited to move forward and learn what we can from bigger pockets, but we know we will learn the most by getting our feet wet. 

Thanks Everyone!

Advice and pointers welcome! :-D