All Forum Posts by: Ben S.

FHA has PMI (or MIP as they call it) for the life of the loan, which I really don't like. Of course you can refinance later at 80/90% conventional if you paid under value or increased value. I like the flexibility of conventional (less rules than FHA/Rural) and prefer to stick with that, but i'm sure others would disagree. SoFi and some others advertise 10% down with no PMI conventional loans (requires great credit, and haven't personally tried one yet myself), I would try for this over FHA. I like the house hack duplex idea. Gives you a lot of flexibility (long term rent both sides, sell after 2 years for tax free profit, live long term and have tenant pay mortgage). It's also easy to manage a house right next store, so great for learning (though if you have to evict them it may get awkward for a while).

I am putting money in gold/silver (I'm not a gold bug, I don't think it's always good to buy, and it's certainly not a way to get rich, just a way to hedge against economic downturns, as it tends to go up when other markest go down), and rentals, as people still rent during down economies (though you have to account for increased evictions). So for a 401k I would put that money in gold stocks, gold etf's, or paper gold. I'm also not really a prepper/apocalypse type, just see that the stock market is in a big bubble and there will have to be a correction. I also don't trust the dollar that much due to the screwy games the Federal Reserve and other national banks are doing to their currencies. 

So to summarize, gold/silver, and rental properties are what I see as the best investments for the coming few years, just account for additional vacancies and depreciation in the property value, and recognize gold/silver as a tool to hedge against economic downturn rather than a money maker. 

@Michaela G. and @Stephanie Walkes good points. I'll have to keep that in mind. My wife has just started to gain an interest in real estate investment, so I'll be sure to tell her about these advantages she has and can use.

@Harman N. Also if you have attic space in the garage and have/replace with shorter units you may be able to stick them up there. There are probably solutions, but may be too expensive to be worth it. 

I just asked the local bank I am getting financing through about that and they didn't have a problem with it, but they are a local bank and they are holding this loan. Probably with a bigger lender who sells the mortgage you could potentially have a problem.

Hi Tim, sounds like you are financially in a good place, and have a good long term focus. A couple of thoughts:

Your current home could be an asset to investing if you borrow against it. Do you have a mortgage on it now? The house hack saves money in taxes if you move every couple years when you sell, so can be good for that, but if you are already buying rentals and working full time that may be too much on your plate. 

If you follow the BRRRR strategy, then you can take your cash to put money down on the first rental, then refi to get cash for the next, and continue. Do that for a couple years and aggressively pay down the mortgages and in 10 years you can probably retire.

Since you already have a decent amount of money in the stock market (I assume, with the 401k) I wouldn't put any more there as it is in a bubble now and will likely see a correction in the next couple years. 

Living cheaply and saving a lot of huge, and something a lot of folks have a hard time with that, so props to you for living for the long term goals rather than immediate gratification.

You might want to partner with a contractor. He will be able to do the work and can schedule a flip or rehab around his normal construction jobs, and you can work the financial end of it part time and then transition to full time. Go to local REIA groups and find people on the forums here. Just an idea. The transition can be tough, so stay focused on the end goal during that time.

You mean you want to be able to heat/cool the garage? Or put the furnace for the whole duplex in the garage? If just for the garage, look up mini-split units. The inside half mounts on the wall, and the rest sits outside. Efficient, cheap, and perfect for a single room. If for the whole duplex, you could get something that will hang from the ceiling in the garage if you have a high enough ceiling or a corner were it won't take away as much usable floor space.

In my expience, female investors just aren't the ones making the videos and podcasts and starting the REIA groups and doing speaking tours and that sort of thing. They seem to prefer to focus more on the business and not be as interested in being in front of a microphone. Of course that's a generalization that maybe isn't true outside of the couple circles I am part of.

Your cash flow has to include everything up front. The big expenses (capital expenditures) don't take away years of profit, they take away a monthly amount that is calculated and reserved for them. If you factor everything in (increased future maintenance and capex, estimated changes in interest rates and inflation and the housing market, etc, etc etc), you should make your offer price based on all this to ensure you have positive cash flow. 

Having just started talking to commercial lenders, i've found the rates to be higher, the terms to be shorter, and the application to be more complex. I would stay with regular conventional loans as long as possible, but if you've found a good commercial broker and don't mind a longer time period to replace your income, then go for it.