All Forum Posts by: Thomas Straub

I just recently did a cash out refinance on one of my properties that got appraised for much more than the original purchase price in 2019. I pulled 41k in cash and lowered my rate by a point to 2.875% so i actually lowered my PITI payment by 6$ after the refinance. Seemed like a no brainer for me but I see why you are debating because it did extend the term back up to 30 years. I agree with previous comments on comparing interest rates and finding out just how much equity you have in the property because every situation is different. Hope this helps.

@Nate O.

Incredible story Nate. Very encouraging to hear that from someone that started not too long ago. I’m going to send you a connection request, I have a couple questions and would love to hear more.

@Chris Clothier I'd like to start by thanking you for this fantastic post. After reading all the negative news lately and worrying about my grandmother and others more at risk, this post was very inspiring. While I don't know the size or fundamentals surrounding your businesses, people like you, @Jay Hinrichs, and others showing compassion in a time like this truly make you leaders in this space. While I am young and strive to grow a business to levels that you are at, I always will put a priority on truly caring for the people surrounding me.

This post hit home for me as I read it at work. I work at a nuclear power plant, deemed an essential employee, so I luckily do not have to worry much personally about financial times ahead. Some coworkers of mine without much skin in the game have been bragging/wishing for "markets to tank" to "make bank" in the coming months. This especially angers me because these individuals are saying this in front of other older coworkers that are much later in their career longing to retire in the near future that will be negatively impacted for who knows how long. I can't help but shake my head hearing conversations like "with the amount of money we make, what is dropping $5,000 in the stock market right now?, when that will turn into $100,000 by the end of 2021". I'm sure they will get smoked in the months ahead. 

I have friends previously working low paying hourly jobs already trying to file for unemployment because they won't be able to pay their bills on April 1st. My parents, while still 7-10 years away from "retirement" have seen their portfolio drop by 20%, they are very worried. I know multiple small business owners in my surrounding area already worried about how they will make ends meet if they can't reopen soon. While I will be still be looking for quality investments in the future, I am sure I will end up loaning/giving money to my parents/siblings/people around me because I believe that is the right thing to do in a time like this. 

This was exactly what needed to be posted on these forums to put all of the inexperienced investors looking to make a quick buck on others financial hardships in check. I thank you again and wish you and your network success in the future!

@Haley Powell Hi Haley, congrats on your upcoming graduation and lining up a job in advance! I was in your situation last year around this time as I was completing my bachelors degree and preparing to move to a different area. I currently "househack" a single family residence to 2 of my close friends that allows me to live very close to free. 

If I was to make a recommendation for someone about to graduate in a couple months, it would be to keep living for free with your parents and save as much as possible. Research and learn as much as possible about the Dallas area before you live there and then do the "househack" if possible like you want too. Conventional lenders allow you to put as little as 3% down on your primary residence and interest rates are very affordable right now. Though you don't have the work experience, they will also count your full time college attendance as "work experience" when approving you for the loan. If you truly think that the Dallas area will appreciate well over time, even if you were negatively cash flowing a little bit while living there and renting to others, I think that is better than renting depending on the situation. Obviously negatively cash flowing properties aren't what you want, but you need a place to live. Feel free to message me if you want more information about what I did, our situations seem to be very similar.

Good luck, I am sure you will do just fine with whatever strategy you ultimately decide to choose! 

@Aaron Flake Yes you are correct with the primary residence. Under the terms, I do need to live here for at least a year because I used a conventional loan with only 3% down. I put as little down as possible and rent to friends so I almost live for free so so far it has worked out as planned for me. I really like the house and it doesn’t need any updates and I plan on living here until I either get a new job or move from the area so the occupancy restriction really was never a problem for me.

Looks like you are doing very well for yourself! Congrats on your success and baby on the way. Good luck.

@Aaron Flake I actually already do "house hack" with my house. I live in my single family residence, that I purchased last year, and rent to 2 of my close friends. It allows me to live for about $70 a month in housing costs including everything. What was your start in investing? Thanks for the reply!

If you had a "large" amount of cash saved up, zero debt, minimal monthly expenses, a 6 figure W2 job, and were 22 years old looking to start ASAP, how would you start? 

I believe my best course of action is to start by maxing out my conventional financing limits on 1-4 unit properties in my targeted areas out of state that provide great cash flow. Please correct me if I am wrong but I think cash flow is the most important measure to maximize early on. I would consider myself a moderate to high risk individual and plan on learning as I go forward but want to be smart and very realistic with LTV ratio and not setting myself up for failure.

Love to network and plan on diving into investing by early spring time. Would love to hear any creative investment strategy that you did or wish you did when you were young and starting out!

Hello everyone! 

I recently joined the Bigger Pockets community and love what I have been reading and seeing so far. I graduated from college in May of 2019 and was fortunate enough to land a relatively "lucrative" W-2 job as a equipment operator at the local nuclear power plant. I also do sales and marketing for a moderate sized furniture manufacturer which allows me to travel between the Syracuse and Buffalo, NY areas at least 4 times a month. 

I would love to connect with anyone and everyone involved in 1-4 unit and small apartment building properties in the Upstate/Western NY area. Whether its  someone you know involved or general advice by an experienced investor like yourself, I would love to hear from you and start a conversation!