All Forum Posts by: Millard Wilson

Thanks for the feedback gentlemen!!

Hey everyone!! Alright so my question today is how do banks look at investment properties when applying for a new mortgage??? Does it help your dtr or hurt it? I currently have 2 investment properties both are paid for and I’m looking to close on my third in a few days. But I plan on moving to Texas in 2 years and of course I want to purchase a home when I get there so I’m trying to get myself in the best situation possible.. should I hold off on the 3rd property?? Right now I cash flow about 1200 a month on my current rentals. Any advice would be appreciated. Thanks!

The Book on Rental Property Investing: How to Create Wealth and Passive Income Through Intelligent Buy & Hold Real Estate Investing!

This helped me a lot!

Thanks for your input! I’m going to talk to my local credit union tomorrow about a unsecured line of credit. Thanks again.

Okay so here is my situation, I just closed a deal on my second investment property. Both of my properties are paid for and I have my home that I just bought about 7 months ago that me and my family stay in. I have the opportunity to purchase my grandparents home for 30k and the fair market value on it is around 140k. The issue is that I know my bank probably won’t let me keep my current home and purchase my grandparents home do to the whole “DTR”. So my question is would it be smart for me to just try to sell my home and buy there’s then draw out the equity to purchase more property?? And if so what banks do you recommend for equity loans?

@Ken Raymond Thanks i have been playing with the numbers using those online mortgage calculators but I'm not sure how accurate they are. right now i just plug in a interest rate at 4.5% and base it off that. do you know if these are the best tool to use to get an idea of where my payment would be??

@Lee Smith Thanks for all the great advice and input i didn't think about selling on a contract. if i decided to go this route should i have a lawyer on y team in case of later problem down the road such as evictions and what not?? and also if i did this what you recommend for the purchase of the next property another fixer upper that i can purchase cash they range from 10k to 25k or something a little better for around 60k and go through the bank?? thanks... o and the rental rate for the area is around 750-800 a month 

Hi friends!

well after a long wait i finally purchased my first investment property exactly one month ago!!! i am very excited about it because this has been something i have wanted to do for quite some time now. the home i purchased needed a slight remodel and to be updated which i am almost done with i just have the basement left to finish. so before i ask my question let me give you the rundown. i purchased A three bedroom home with one bath but there will be another full bathroom in the basement. I'm in a halfway decent neighborhood and the home sits directly across the street from hospital. When doing my due diligence before purchasing this home I checked other local homes nearby in the same neighborhood and they were going for around 40k To $45,000 and I purchased mine for $22,500. I purchased this one with cash so I have no mortgage. Right now me and my family are staying in this home. my goal is to rent it out at the end of the year. I know I want to purchase more real estate property and so my question is what is the next best move to do so. Should I take the equity out of this home to purchase the next one? Should I try to finance one through the bank? Or should I save and try to purchase another one cash? Right now I am 28 years old and my goal is to have enough rental property to replace my current job and income by the time i am 34 and do Real estate investment Full time. Any help would be a greatly appreciated thanks!

Originally posted by @Michael S.:

@Millard Wilson

Welcome to Biggerpockets. Finding a mentor would be a good way to start. These would help out in case you'll for a mentor

http://www.biggerpockets.com/renewsblog/2014/04/16/finding-mentor-real-estate/

http://www.biggerpockets.com/blogs/3225/blog_posts/26426-how-do-i-find-a-mentoThanks michael these links are very helpful and a good place for me to start!

@crystal smith thanks for your advise. The one part that I'm a little confused on is if i barrow the money to make my first purchase wouldn't that cut in to my profit a lot if i want to use it for a rental property??