I'm very new to the MMM forums, but I'm loving the idea.DH and I also started out very young building our next egg, but we also had 4 kids young (we're 30 with 4 kids 6 and under). On top of our regular savings though, we've found a niche with investment properties. We currently have two town home type condos in the same complex. Appraised value is $90,000 and we bought one for $49,000 (needed complete gut for $12,000 though) and one for $60,000 (needed about $5k in work). We've owned them approx two years and one rents for $950, the other for $900. We have 2+ yr renters in one and 5+ yr renters in the other. For those we took personal loans from my parents for a combined $90,000. After two years we owe about $66,000.
There is currently another property in the complex for $55,000 and we already have a renter (current renters brother). The problem is we cannot find financing locally. The second they hear its a condo, they say no. Second properties of single family homes, no problem, but they won't touch condos due to high foreclosure rates. Does anyone have any suggestions for a larger bank that may not be in our area but will be open to investment loans on condos. We have credit scores over 800, income to cover both mortgages (our current mortgage is about 10% of take home pay), about $100k of equity in our current $200k home, 25% to put down.
We do currently have a HELOC open (so we could pay back my parents a little quicker), but I hate the variable rate thing. I think it tops out at 7% and that scares me. I really just want something fixed.