All Forum Posts by: Anthony M Schlitt

@Jonathan Bombaci -- Love the suggestions. Fortunately, I've paid off my car, but you're near spot on with rent. The 40k in two years is sort of my secondary REI goal right now. I'm currently in the military and anticipate moving to my next duty station within the next few months. Very much on board with househacking then.

I plan on using a VA loan to purchase my first property and would strongly consider a small multifamily should an opportunity to purchase one come my may. Expensive coastal markets and owner-occupancy rules look like they're going to prevent me from using the VA loan too aggressively (at least initially with my time in the Navy) which is what's driving me to considering BRRRRing back home in the Midwest after the first property.

Really appreciate the book recommendation too. Currently working through David Greene's Long Distance REI book, but I'll add Scott Trench's to the list next!

@Tom Mackinen

I actually hadn't considered P2P lending at all. I'm not too familiar with peerstreet, but I'll definitely consider looking into it if you can get returns like that in such a short time span. Thanks for the tip!

I'm recently out of college and looking to start investing in RE. After reading David Greene's Boor on BRRRR, I'm looking to get startedt as soon as I can put away enough in savings to outright buy a property to rehab. Based on my current budgets and goals, putting away another 40k in the next 2 years should get me going. I'm always looking for ways to increase my savings rate, but my question is this: What are the best types of accounts to save incremental installments of money for a time period of about two years?

Options I've considered:

• Savings Accounts @1%
• Money Market Accounts @2.15%
• 1yr CD's @2.65%

Looking for some opinions here, particularly from some FIRE people.

Background: I'm 23, a year out of college, earn ~60k in the military and carry almost no college debt. I've been maxing my roth IRA for the last three years. Been studying personal finance for the last year or so, and the idea of F.I. has caught my eye for the last few months. Just read David Greene's BRRRR book and in it, he suggests saving until you have the capability to purchase a distressed property without financing before you get started. In order to reach my savings goals more quickly, I've considered cutting back how much I contribute yearly to my roth IRA.

Question: Could saving more aggressively for real estate investment (in order to achieve financial independence more quickly) justify reducing retirement savings that will compound for nearly 40 years?

Pros:

• If I were to achieve FI by, say, 40 the need for a large payout at 59.5 is lessened.
• FI earlier in life due to quicker timeline. Maybe I'm drinking the FIRE coolaid a little too much, but if I can reach a stage in life with an ideal work-life balance earlier (particularly when family/kids are young) I should pursue that as aggressively as possible.

Cons:

• I'm still working towards my first investment property. Reducing roth IRA investments (in mutual funds/lifecycle funds) is putting a lot of faith in just one investment type.
• As young as I am, cutting retirement savings massively reduces available sum at 59.5. (e.g.: a one time $6000 investment at 7% annual return becomes just over $73,000 in 37 years)

(pardon the extra few bullets, I couldn't get rid of them for some reason)