All Forum Posts by: Ada Tor

 Thank you, but I am getting that car for personal reasons. 

I am looking for advice on the best way of financing the purchase in terms of whether paying cash or taking a loan would be more beneficial.

I am looking to upgrade my car, spending about 50K. I have an option to pay cash or take out a loan at 2.99% rate. Which is more preferable?

Seems like cash will keep my DTI ratio lower than taking out a loan, but it's a considerable chunk of change that could be used as a downpayment on an investment property.

What would you recommend?

I see the American Dream slowly changing. The trend is towards mobility, career flexibility, less material possessions/minimalism, ability to travel, having less children or no children at all (i.e. less pressure to purchase a house), postponing or foregoing marriage... Younger folks are less focused on acquiring material wealth but rather on discovering a cause or a career that's meaningful to them. There is no longer the pressure to hit certain "milestones" in life.

Older generations see it as lack of responsibility or lack of maturity, but most millennials that I know are just as responsible (if not more so) than their parents, having witnessed the aftermath of the recession. They simply have different priorities in life. 

From an investor standpoint, it's a great time to be a landlord! 

Specifically, if it's NOT your primary residence?

Anyone has experience with this yet? Seems like legislation is just now starting to catch up but after doing research, I still couldn't find a clear answer. 

 Eric A, that's precisely why I'm using real estate for passive income on the side! Ultimately, financial freedom is the goal. 

However, until I achieve it, I'd like to be smart about it and make sure I protect my livelihood. 

 Scott, thanks for the input. Why do you recommend to stay away from STRs?

Thanks Julie, valuable information!

Also, did you put your STR properties in an LLC?

Thanks for the quick reply, Julie - very encouraging to hear that it's an avenue worth pursuing.

I used to be concerned about my personal furniture (which is not inexpensive) but after I added up the opportunity costs of NOT utilizing my primary residence as a STR in my absence, all my concerns about it vanished. Let them use it! It's just stuff, after all.

I will use my garage to store my personal things like paper files with personal information, photo albums, nice cooking pots and such. I will also lock up my master bedroom/bathroom and master closet. Hopefully this is a sound plan- time will tell, I suppose.

The only concern I have at this point is service animals. In LTRs, service animals had to be allowed. What about using my primary residence as STR? If I have an allergy to animals - can I deny STR tenants with service animals due to an allergy?

I am considering venturing into the STR market chasing higher returns (gotta be honest!) after liquidating my long term rentals. My first "trial" STR would be my primary residence on days when I'm not home, which is about half of the month.

After reading pages and pages on BP forums discussing potential issues, my biggest concern is personal liability. I am a high-wage earner (getting a W2 from a Fortune 500 company) with a substantial career growth potential in the future. Feel like it makes me a good target for lawsuits, frivolous or otherwise. Should I even mess with STRs? Or stick with the tried and tested LTRs?

Anyone been in this situation and can chime in, I'd appreciate it.