All Forum Posts by: Andy Pate

I'm not sure how to go about this without completely wrecking my credit score, but maybe it's worth the hit? I have two goals to increase my access to available cash/credit:

1. Refinance my car loan (this would bring my car payment from $287 down to $111)

2. Extend the credit limit on my current credit card

Should I just go ahead and do both of these at the same time and just take the big hit on my credit score or spread them out? If I spread them out, how long would I wait?

I normally see topics about partnership being a good way to go when you both bring something to the table (1 party brings research and ground work, the other brings money). What if you both bring the same thing to the table, but one of you brings a little bit more to the table. Pros and cons to partnering at this point?

I have a cousin who is in the market for a house. I went on my typical Real Estate rant and it peaked his interest. We both have good credit, saved up capital. The additional thing I would bring to the table is I have been building systems and researching this for quite some time in preparation for my first property (originally to house hack).

• - Any insight into the pros and cons of this type of partnership?

• - If it is wise to partner up, what variables should we consider that are specific to partnerships like this?

Agreed. The book goes over this and how to avoid Fair Housing Law, and the form they provide does this perfectly. I just don't picture a landlord giving their time to go over all of its information. I'd share the form here, but I don't know if that is looked down upon as usually you don't get access to the form unless you buy the book (or become a pro member).

I am reading The Book on Managing Rental Properties, and I have come across the part where it talks about getting references from previous landlords. The book leads you to a form that BP calls the Previous Landlord Reference Form. It seems to be a thorough questionnaire, but realistically, have any of you actually been able to get a previous landlord to sit through all of that information?

Definitely had to think over the opposing opinions on this subject from you guys/gals, and I really appreciate the opposing views from @Carl Miller and  @Patrick Blanchard. I keep leaning towards the idea of putting it towards my safety net for my first house hack as @Bonnie Low and @Bill Hampton mention. The house hack would provide me the ability to live rent free (if not also cash flow), and I would be building equity sooner than later. I could then take the money that was originally allocated to rent prior to the house hack and apply it to the student debt (along with any additional income that my flight instructor position might provide me). Also considering that I can put that safety net into a money market account or something similar to accrue interest while it sits there. When I go through the numbers, prioritizing the house hack provides me more capital, and provides that capital sooner, compared to attacking the loan.

I'm all ears to an opposing perspective of why the student loan would still be better to pay off.

@Bill Hampton @Bonnie Low I appreciate the input! I intend to use the VA Loan to avoid the down payment. My big concern was having to tackle that interest in the future, but there has always been a side of me that felt putting money towards the school loan seem like such a sedentary option.

The other worry I have is if I go to apply for a mortgage, will the accruing interest and no payment in X months decrease my chances of qualifying for the mortgage?

I just graduated flight school and I have a school loan because of it. The payments for the loan are deferred for 2 years, but still accrue interest (interest rate is 7.2% and balance is ~$60k). I intend to buy my first house for house hacking in 2021 and I am currently building a safety net for that property. Recently, I have had a family member start helping me out financially by providing me additional monthly income (~$900 / month) that they say I can do either of the following options with:

• 1. Put towards school loan to keep interest from building up.

• 2. Put towards my safety net for a house I intend to buy in 2021.

I can't seem to wrap my head around what would be the most logical approach to this. How would any of you approach this?

P.S. I do intend to refinance the school loan (extending loan term and would receive a lower interest rate) before the deferment period ends.

@Stephanie P. Sorry for the late reply, but I appreciate the response! For the business purpose financing where you mention having to show the last 12 months of payments, does it matter that it's rent payments instead of mortgage payments? 

@Mary M. @Collin Savunen On the topic of a College Bubble, I think it's a matter of planning around something that your gut tells you may become a problem in the future. The way this would relate to REI (specifically Buy and Hold) is to avoid properties reliant on college tenants and buy elsewhere for the time being. If the college bubble does burst, then at least you'll be on the outside of it, ready to invest in those previously college reliant areas. This is assuming of course the market finds a way to convert those areas into something sustainable and they just don't turn into "war zones".

Hey Guys/Gals,

Looking for recommended reading specific to deploying self discipline and/or will power. I am in a rut, and books have always been a good start for me when it comes to solving problems. 😀