All Forum Posts by: Aaron Bry

So I am at a point where I am considering a new car. Nothing fancy, a 2016 Hyundai Accent that is on sale for $11k. I would be paying cash.

I am at a dillema as I am not sure if it's a smart financial/reliability move. That money could be used towards an investment property.

I currently drive a 1996 Honda Accord and it is showing its age, needing more repairs as time goes on. In addition, the Accord gets an average of ~25mpg, while the Accent is rated at 28 city, 38 highway. A simple estimate puts me at a savings of $382 per year on gas alone.

Do you guys put off vehicle purchases until you're "Financially Independent" - or is this something that is a reasonable purchase?

If the truck is beneficial to you (you use it to haul/tow on a regular basis) - I'd say the cost is justified and you should keep it. Sounds like its irregular hauling though, in which case it would be cheaper to drive a small car and rent a truck when needed. (Uhaul for $19.99 a day)

Another option I would consider is selling it for $22-25k on craigslist (People can finance vehicles even if they're purchased off Craigslist, so it's a good possibility they can come up with that money) - and then turn around and buy a fuel efficient truck, such as the Toyota Tacoma (My favorite are the early 2000's which can be had for under 10k)

Ignore the future family concern for now. Vehicles can always be purchased later. Insurance and gas price difference on a smaller, cheaper car will save you AT LEAST $100 a month vs the truck you own now. That's $100 a month saved away for a future car that you can pay off with cash - no financing.

I can tell you what I would do, though:

Sell truck after home refi (lowest I'd take is 21k) - have 4k cash at my disposal after loan is completely paid off. Go buy a Versa for $9k - only financing $5k. Do whatever possible to pay off that $5k in one year. Switch from full coverage to liability only after paid off - save at least $50 a month.

There's a reason I still drive a 1996 Honda Accord, and it's not because all the dates it gets me. Haha.

I agree with John, I've seen a significant increase in prices over the past six months (Thankfully I purchased in February!) - I am patiently waiting for the day the market goes back down and I can scope out investment properties.

 Thank you! I'm glad to be here. :) I have actually started looking at duplexes, yes. In Rancho Cordova I found several around 250-300k, most of them being 2 bed 1 bath on each side, both with a single car garage. Seems like the units would probably rent for around $1200, which would pay the majority of my mortgage for both sides and I could live nearly rent free in the other unit or rent it out if I wanted to remain in my current home. It's an idea in the back of my mind, definitely! I am making it a goal to purchase one investment property by the time I'm 24.

Kim - I have been reading up and it sounds like the perfect way for me to get started - while keeping my mortgage nearly free if I decide to live in the other unit, which is what I would most likely do. Thank you for the warm welcome to this community. :)

Thank you, John! The encouragement is appreciated!

Tim - I actually just drove by the new construction yesterday and was not even aware new homes were going up! What I've seen lately though is that new home construction in this area is generally in the higher price range (behind Elk Grove Auto Mall for example, new homes started at around 400k for the cheapest floor plan if I recall correctly) and doesn't change much for the sub-300K homes such as mine. It'll be interesting to see what's in store and what the price range will be, for sure. I just hope it doesn't lower my homes value!

Al - I will definitely check out the events page, thank you!

Jeannie - Ah, I love Auburn. Anytime I need a break from reality or a good motorcycle ride I head up that way. Highway 49 is beautiful. I haven't looked into the market there at all, to be honest! What's a standard home price for a fixer there? Have you invested in any other properties? (besides your own, of course).

Hey Sergey,

Thanks for your reply! I have mainly been looking to invest in the greater Sacramento area where I currently work and live (and was born and raised), but have been feeling like it is tough. I could see investing in SFR as a possibility here, but duplex/multiplex sales don't seem to be as common, especially in the Elk Grove part of Sacramento where I feel the market has the most potential. I have been exploring other markets, mainly Nashville and surrounding areas of Portland (Gresham, Hillsboro, Salem) - but not sure which is the best move. If I invest in California I would definitely be taking out a mortgage. If I relocated somewhere with a more reasonable market, I could possibly buy a duplex or small SFR with cash. Just trying to figure out how to best set myself up for the future.

I see that you're in the Sacramento area - do you own property here? And do you have any tips for someone starting out in this market?

Hello all. Glad to have found this community! I am from Sacramento, CA and I build CNC machines for a living making a modest wage, but do not see it as a permanent path to success. I am 21 years old and just purchased my first home six months ago with my older brother (Our primary residence) - however, market values are rising and we have talked about selling the home and parting ways if it raises another 40-50K. I would like to go out on my own and look into buying a multi-family residence/duplex and start my dream of owning several rental properties. Since buying my current home, I have installed new flooring/baseboards in every inch of the house, all new appliances with every water/gas line upgraded to stainless steel, landscaped my backyard, among other small things. I think my handyman skills would benefit greatly in my desire to be a real estate investor. Is California a good market compared to other states? Home values are very high here which can make it tough to get started. I have been contemplating moving to Oregon, where I have visited often and find I like the best. What is Oregons market like in comparison to California? 

Thank you all and I am looking forward to becoming an active part of this community!