All Forum Posts by: Skyler Carpenter

Good afternoon,

I used a variable interest rate to purchase my first rental property last fall and will continue to use it. HELOC's can be beneficial as they can be interest only payments which provides some flexibility as well as the interest structure is based on the outstanding principal rather than a front loaded amortization schedule. I would not hesitate to use one, just be sure you calculate the payment in when figuring your numbers on a property. They can also simply provide some security as a "back up" cash reserve if needed.

Best of luck to you.

@Tristan Romero

Thank you. It feels pretty good to have found this first deal. The other problem I have that I should have mentioned originally is that I don't feel that I have a large enough cash reserve for a larger property. I had my furnace fail in the third month that I owned the property depleting all my cash reserve. I was told to have a big cash reserve but I was willing to risk it for the sake of getting started. If I sell this property, I would not have a enough for a cash reserve and a down payment.

I completely understand your thought however the property is 133 years old and not well built. I dont think there is much value in putting money into the property. If I did it is still a 1/1 in each unit and it would not increase the value. It is still in livable condition and maintaining but I'm afraid if there was a needed repair you would never find the end. 

Hey all,

Looking for a bit of advice on a next move. I currently have one duplex that I have owned for about 10 months. It cash flows pretty good and if everything holds it will be about a 30% ROI for the first year. It is a class D property and is in rough shape and I knew it wasn't perfect when I bought but I have this increasing feeling that it is a ticking time bomb. I do self manage which isn't fun but it is my only option for various reasons. The experience with this property has me less enthusiastic about real estate than in the past. I have been looking in another market that is promising however it requires a lot of money down to make something cash flow. I have been only looking at small multi family as I like the concepts with multi however maybe I should look at single family?

I have a couple options. I can sell and walk away (and would feel some relief) however I don't have enough money to purchase another property. I could find another asset class to invest in but I do realize real estate has so many benefits. I could stick it out until I get enough for another property and hope I don't strike disaster prior to exiting.

Thoughts? I would love to hear from fellow investors, especially ones who have been in my shoes or are not overly excited about real estate like I am.

All responses are much appreciated!!!!

Skyler

Thanks for the replies everyone! This makes me feel better about looking for a realtor first and see what happens. This is exactly what I was looking for!

Thanks Brett for the quick response. Price will depend on how I can finance. If I go the traditional route and need 20% down it will only allow me to purchase in the $150k range. If I can get seller financing or something more creative I can handle more as long as it cash-flows obviously. I can work on both, which makes sense. I feel more efficient if I focus on one step at a time and find a process that I can repeat. Hoping there was a logical reason to do one over the other but maybe I'm over thinking.

Hey all,

Been a while since I have been on here. I purchased my first property a few months ago and looking to expand. I have continued learning and think I think I need to come up with a better plan for the future. I am most intrigued by mutli-family using a buy and hold strategy. I am contemplating going into a different market (lack of options in rural areas) and am not sure where to start. Here are my thoughts...  I am torn between a realtor and financing. I want to start the process of finding a good realtor so I can learn the market a little better and get "deal flow" started. However, because I don't have financing lined up I don't want to ruin the relationship by appearing to be a tire kicker. I do feel like there are deals out there that creative financing will work and there for, I don't need financing figured out until I find a deal. The situation will warrant what will work best. On the other hand, I don't want to work on getting financing lined up and then it washes up, for example with private funding, before I can find a deal. Maybe neither of these two are the spot to start either?? Any and all opinions are greatly appreciated!

Skyler

Thank you!!

I wish ther we're local meetups. I have look and there is nothing in the rural area I live and am looking to invest. I have a list of lenders that I'm going to call and see what they can provide. I appreciate the replies and advice!

Thanks for the replies. I will have to do some checking with additional banks to see what they have to offer. It's good to know there are other options out there.