All Forum Posts by: Theresa White

That's awesome!  Congratulations on both of your big events!

Welcome @Robin Cox!  BP is awesome...I love it.  I'm sure you'll meet and exceed your passive income goals! 

I'm starting to research neighborhoods down your way and would love to hear your experience with your first property there.  LOL, not trying to move in on your turf, haha, but a young man I know is considering moving to the great Cincinnati area for his next career move and is hoping to buy an inexpensive property to house-hack and improve before moving on/up to a second property, etc.  PM me if you're willing/able to share your thoughts.   

Best of luck to you!

Just an idea...any chance your finances will support you using the cash-out for a down payment on another property with cash flow that will cover your student loan payment?  If so, your student loan payment goes away, and you have new tenants building up your equity in your new property. 

Just remember closing costs on the refi will eat into what you walk away with (so, $40k less closing costs), and there's a chance you won't be able to beat your current interest rate. 

@Jon Sheffield...that's awesome!  I bet you're going to learn a ton more living in the property, and just getting into the game, you're ahead of most people.  That's so cool that you were able to connect with a great realtor.  I imagine there's more success stories coming your way, and I'm glad to hear you're building reserves.  It's a great feeling knowing you can weather any market storms and let time make your investment a huge winner!  Congratulations once again!

@Joe Buchmann, welcome!  I am sure you'll be just as amazed and benefit from this community as I have.  I attended my first meet-up, met some great folks, and am looking at our first purchase in August.  I know I would not feel so confident and ready without this forum.  Happy investing to you and your family!

@Kashiff Miles, I totally understand feeling antsy to act but not being financially ready to pull the trigger.  In my day job, I have an incredibly challenging project that has a ton of supporting tasks required, and I sometimes get overwhelmed by it or lost in the effort.  I learned some effective means for dealing with it, and can see those means being modified for any intimidating project that takes time.  For you or anyone who is interested, here's that attempt at applying it to newbie real estate investors...

Try mapping out on paper your financial timeline to Deal #1, and using that to build a deliberate action plan that shows you're taking real steps every week in the right direction.  I'd suggest this timeline be by week, with weekly goals/tasks (such as deal analysis mentioned above, getting through a reading list, attending networking meetings, driving or walking neighborhoods, setting up your financial accounting systems, building any templates or checklists you'll need, etc).  Include a place to record your financial progress every week, so you can compare what you think will happen now to what you actually make happen.  This will always let you know if you're on track, and allow you to adjust if necessary.  On every Sunday afternoon, consult the objectives/tasks for the upcoming week, consult your calendar, and build out your week's schedule to make it happen.  Check off the items on the big master plan as they are completed.  

With such a visual plan, while you are feeling impatient and amassing your funds, you have the comfort/knowledge of seeing the proactive steps you've taken along the way and know you're better today than yesterday.  You're not just waiting--you're killing it!  And when doubt creeps in or direction is lost or impatience is leading to impulsivity, you have at your fingertips that solid plan built in a solid emotional state to refer to for motivation and reassurance.  

Map it all out, put it in a planner that you carry every day or hang it on a wall where you'll consult it every day, and leave room for some edits. 

I'd say "Best of Luck," but I think you'll be just fine.  :-D  I look forward to hearing your success stories!  If you end up making something like I've suggested, I'd love to hear how it works for you.  For my day job, it changed my life, I swear! 

I for one never regretted keeping my first home as a rental with prop mgr in place. A couple questions: 1) what would you clear if you sold the house? With only 5% down and such a short time living there, will the sweat equity give you much more to work with in Richmond? 2) could you live more cheaply for a year renting in the new place, spend that year socking away funds AND doing neighborhood research AND networking with the local REI groups? In your shoes, I think I'd be leaning towards keeping the first house and posturing for the best deal after a year of renting a safe-but-cheap place. If you use your time wisely, you might make a far better purchase in a year than if you rush it now.

I've been thinking about this as well, in England or France. So if anyone has experience in purchasing in these countries from the US, I'll be following this thread. My goal would be to move enough capital into a local currency for a down payment and significant operating reserve, and select a property and down payment amount that will ensure strong cash flow. I'd let that cash sit there and either make an annual international wire transfer to minimize fees, or better yet, leave it in place and use the funds when we travel there.

Note to others:  "off plan" refers to a house/unit that has not yet been constructed, only planned.  If I am correct, the OP purchased a to-be-built unit at discount, which worked for the developer who needed commitment and to raise construction funds, and benefitted the OP by appraising below-market compared to once it is built.  In two years, when the unit is completed, the OP will get a mortgage for the 70% left to be paid on the original 117K purchase price, and have a renter in place or the developer's guaranteed income. 

My hubby had a rental property in England on which he paid interest only for a number of years, and did quite well by appreciation when he sold.  It makes me absolutely queasy to think about that kind of speculation, but he said that (at least where he lived), appreciation was the name of the game. 

EDIT: I grew up in the Rust Belt...appreciation is simply a fantastic bonus I don't really count on!  I marvel at how different various markets are. 

Best of luck!  Protect your monthly payments, and since you'll be used to paying that much  per month, once your mortgage is less, consider socking the difference away until you have a nice emergency/"slush" fund in place.  Then...do it all again!