All Forum Posts by: JT Spangler

It's personal preference, really. If you want cashflow, go with the lowest monthly payment. But if you want equity, go with the 15 year. One consideration no one has mentioned yet is that having a paid for property (that is an investment) means you'll likely be able to establish a line of credit secured by it, which is extra capital to you for other acquisitions/rehabs. So that's something the 15 year might offer. 

 That's awesome! And thanks! I'm actually getting pretty close to having to change that signature, though, which is excellent news. :)

 Ha, excellent question! And precisely why my leases all call for rent to be paid via Cozy (or another equivalent website of my choosing). No checks to deposit, ever. I can be in Honduras and appear magically on the 4th of the month. It's the only way to go.

 My cashflow is after withholding for vacancies, management, CapEx, and maintenance. If yours isn't you might want to change that.

And I have health insurance, a car that's paid for (and youtube, which means if it breaks I can fix it), and have never spent more than $5 on a bottle of wine. 

A funny thing happens when you revisit how much consumer crap you "need" -- turns out you don't need any of it, and by drastically reducing your consumption you suddenly can live on a fraction of what you thought. It's a pretty common approach in the FIRE community.

Lastly, it seems like a handful of people have had some problems reading carefully. Just because I could stop working doesn't mean I'm going to. I have consulting work lined up through the end of the year, and am in the process of acquiring another rental, which I'll almost surely have to put some cash into improving. 

So not to worry -- I'm not moving off the grid just yet. :)

 They are indeed. Deals are getting harder to come by without a marketing effort, but I've been able to acquire a few nonetheless.

It's a crowded sellers market. If I were looking for a place to expand to, I wouldn't pick here unless I had deep pockets and extensive connections.

 If you're chasing numbers, allow me to share something I learned in a lot of higher level math courses: they don't end. The point isn't excess; it's freedom. :)

My basement unit rehab is completed, and yesterday the long term tenant took possession. I realized that that means with the cash I have on hand now I could, (1) pay 2015 taxes, (2) pay off my 50 acres of off grid land in SW Tennessee, and (3) build a small cabin there.

My 3 doors in Nashville would cashflow about 1k/mo, which covers all my expenses.

In other words, as of yesterday, I never have to work again if I don't want to. 

Of course, I'm not going to use my cash on hand for that -- I'm looking at other buy and hold deals now. But it's nice to have the option. :)

You mean the bi-monthly foreclosure auctions on the courthouse steps, run by auction.com?

I've been a few times. Expect to see 50 or so investors there, and crazy prices being paid on most everything.

 You're young and hungry, so here's my suggestion: set up a craigslist alert for duplexes for rent, and then start calling them every day to see if the owner would be willing to sell. It's a terrible time to be placing tenants, and you might find a tired landlord who'll work with you on a deal.