A Rock Climber Living Out of His Van - REI Newbie

[Tomer O.]

Hi BP!

So Excited to have found this place, so much information, quite overwhelming, in a good way. The podcast, the forums, the youtube channel, so much to absorb!

So I'm 28 years old, and I live quite a different life style then most, I live out of my camper-van and I go rock climbing every morning with my friends. I feel so lucky to have found an activity that I'm so passionate about. I spend my year in a few climbing areas. the forests of Eastern Kentucky, the Western Slope of Colorado. and the desert of Western Texas. Just following the weather and changing locations by the season.

(Shout out to @Dave Meyer that confessed for being a rock climber in the making, it was on one of the podcasts, did you stick with it?!)

So let's talk REI.

This life style immediately puts me in an out of state investor position as far as I can understand, my home is wherever I park my van, but that makes it much harder to specialize and delve into one market.

I work very little throughout the year, but I spend even less then what I make.

So I would potentially be able to save enough for a 20% down for a buy-hold Rental property, but with my income I would not qualify for any type of conventional lending.

So it was time to get creative! Luckily I didn't have to go too far, my parents see (some) of the advantages in owning RE, they already own 2 townhouses in MD (outside of DC), that they bought in a cash purchases (that's why I say they only see only some of the advantages in REI).

So after talking to them they were willing to allocate a one time $100K amount to help me with this purchase and structure some of it as a gift and some of it as a low interest loan. 

I'm so grateful and thankful for that opportunity to start my RE journey with a capital like that.

..and because of that I think I'm about to get stuck in analysis paralysis, because I really don't want to mess it up...

I'm pretty sure my route is going to be with a turnkey property, I've listened to every podcast and article that had any information about it and I think I understand most of the pros and cons with that method.

Was reading a bit about potential exit plans for turnkey, or just next steps to increase portfolio, and it seems like taping into the equity, Cash-Out-ReFi is an option, but might not work for me because of my almost non existent income.

My short term goal for the next few years is to be able to get close to $1K in monthly cashflow (which will more then cover my current life style expenses). I would love some help formulating some sort of a plan to get there before pulling the trigger on my first property through a turnkey investment like Memphis Invest or Marshall Reddick.

Thanks so much for reading through my rambling..

Tomer  

[Tomer O.]

Thank you guys so much all the responses!

@Curt Davis

thanks for that information, and from the little research I've done, it seems like the Memphis market is saturated with turnkey companies. 

@Elizabeth Wilson

@Elizabeth Wilson

Haha, it is quite an addictive life style, it's been 5 years so far for me.
So I don't really know the answer to that question, I have a bunch of free time on my hands that I would love to put towards REI, right now it's mostly used to try to educate myself, but since I'm moving around all the time (in Kentucky right now, South Africa in a month, Spain in 3 months, then back to Kentucky, then down to Chattanooga and from there to Texas, all of that in 2017) it has to be somewhat passive. But I'm available via phone/Internet most hours of the day. Sent you a Colleague Request, would love to pick your brain some more!

@Pedro Martins

@Pedro Martins

As @Fabio Salas mentioned I'm not expecting to make 1k in cashflow a month from this one time investment, but more like trying to get a game plan to get there in the next few years..

As to how I got to the goal, well.. it is my current "Freedom Number", and I don't have a specific plan as of now, just some ideas, that's why I'm here :)

@Jeff Wallace

Thanks for the encouraging lengthy reply! would you mind elaborating a bit about the increased chances of a loan or cashout-refi after holding the rental for a period of time. I agree about the second option looking quite appealing if I could formulate a partnership with someone I trust completely.

@Fabio Salas

You were spot on regarding the clarifying!

Regarding you commenting about Jeff's message, I have a feeling Jeff didn't mean 1k cashflow, but 1k rent, correct me if I'm wrong Jeff.

This is based on my little research of the Houston market.