Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

User Stats

3
Posts
0
Votes
Kenneth Cowan
  • Lake Elsinore, CA
0
Votes |
3
Posts

Looking for advice, motivated but feel I dug myself quite a hole!

Kenneth Cowan
  • Lake Elsinore, CA
Posted
Hello all, 26 year old stuck in the rat race in Southern California. Looking for advice on my way out. After spending the last 6 months educating myself, I have realized that I really started out on the wrong foot. I am a salary employee ~60k with a future wife working part time ~30k Made the mistake last year of buying a beautiful brand new tract house at 336k with 2.8% property taxes. Mortgage w/ taxes, insurance and HOA $2500.00 monthly. Love my home, and I can make ends meet, but getting ahead is obviously a struggle. Plan is to sell in 11 months after 2 years of living here to avoid any capital gains. Strictly to get myself out of debt and open myself up to easily qualifying for deals. Other than the home we are virtually debt free. Equity is rising fast in our masterplan community, so assuming there will not be a significant dip in the next 11 months, I should walk away with some cash in hand. Renting out my current home would result in ~500 dollars in the negative each month. Ideally, wanting to search for small rehabs under 100k to start. I have a father in law who has been a remodel general contractor in Southern California for 25 years working mostly for investors to guide me through rehab costs. I know I stepped in the wrong direction with my home purchase, but can anyone recommend any different entry strategies than the one I have somewhat planned to this point? I am itching to get started searching for the deals, but I feel like my home debt and overhead has me feeling like both hands are tied behind my back. Any input is greatly appreciated. I am often amazed by the strategies I do read throughout some posts on this forum as well as through the podcasts. Figured this is a great place to start. Thanks in advance! Kenneth Cowan

Most Popular Reply

User Stats

124
Posts
94
Votes
Eddie Egelston
  • Residential Real Estate Broker
  • Crystal Lake, IL
94
Votes |
124
Posts
Eddie Egelston
  • Residential Real Estate Broker
  • Crystal Lake, IL
Replied

@Kenneth Cowan-

Are you sure you have a capital gain 13 months after buying new construction? Selling is going to cost you about 8%.

It sounds like you have desire, financing and a helpful father-in-law but do you have cash or equity? Where's down payment and rehab money coming from?

Is the fiance on board? Where will you guys live? Maybe tie the knot and get her "committed" before suggesting she move out of her new $330k house into a $100k fixer? haha

I'm just playing a lil devil's advocate and fleshing out more info on your post. You are the most entertaining thing at 2:15 am CST lol

Loading replies...