All Forum Posts by: Brad M.

@Nick Dillaha

Managing long distance really isn’t bad. Just call people when things break. Between both houses I probably spend less than 30 hrs a year on actual work for them now that I’ve got my systems down.

I don’t feel like 23k is too much for a vehicle, It’s just given your situation of trying to buy a rental it will not help you. I’m also not at all against paying down debt if it’s good debt. Both my houses are paid for and I could buy a brand new car every year with the rental profits....but I still drive a 14 year old Toyota. I chose to spend that money on appreciating assets. At the end of the day a new vehicle doesn’t help accomplish my goals.

@Nick Dillaha

I agree with some of the others here that selling the truck and buying something you can pay cash for is the optimally efficient way. It solves both problems. I see so many people stunt there financial growth because they want to have nice vehicles, but in the end that payments just holding you back. In 5 years that truck will be worth how much less and the house you bought with the payment will be worth how much more? Dave Ramsey strategy is about avoiding/eliminating debt not growing wealth. Which one is more important to you?

BTW, I own 2 rental properties in Fort Myers. Lived in Lee County for my 1st 27 years in the cape, NFM, and FM.

@Bradley Fisher

Very similar numbers to when I bought my first rental, but I bought at the bottom end of the market (but didn’t know that at the time). Given you’re investing in small towns you will likely be less affected by any downturn. I wouldn’t wait if that’s your plan. It has to start with one and who knows what the future economy looks like.

@Jeffrey Masessa

In my humble option, if you go to college it should be because the field you want to work in requires that degree to proceed to the next step. Otherwise what’s the point. You get a piece of paper. College doesn’t teach you anything you can’t learn somewhere else for free. If you’re all about the life experience, that’s a different story. Go “find yourself” if you need to, but if you already know what you want than don’t waste time. Go get it. Just be sure what you think you want is what’s you’re gonna want in a decade. I can tell you I have no idea if any of the realtors I’ve ever worked with had degrees or not. I don’t care. I only care if they’re good at their job.

Full disclosure. I have a degree in civil engineering, but don’t work in the field anymore.

@Stetson Miller

@Corazon B.

Stetson is right. If you put down that much on a house and take out a loan for the remaining 100-150k you will easily cash flow if you make smart purchasing decisions. 20% down and use the rest for a renovation. Value add is the easiest route in my opinion. I’m not one to criticize anyone for wanting to pay all cash because it’s a strategy I like (not super popular strategy on BP), but would personally take out the loan before buying a condo. HOAs and condo associations are generally not easy to deal with. They’re not a landlords friend.

@Corazon B.

I don’t use a management company. It’s no different than if I lived down the street (which I used too). If the refrigerator breaks (happened this week), you call a refrigerator repair man. I remodeled it when I lived there so it’s in good shape.

I screen applicants myself. I won’t even look at an applicant without a credit score over 700. Past that it’s about vetting there employment and previous rental history. Anything weird and they’re a no go. When I first started out I thought the more applicants the better, but it’s better to have 3 quality applicants than 500 applicants that will be problematic. Both my houses are in The Villas near Bell Tower. Both were foreclosures.

@Corazon B.

Great area for rentals. I would advise against a condo though. A single family is usually a better investment than a condo. An obvious problem is you usually can’t buy one for under $120k. I would consider using a loan. I own two homes in Fort Myers and they do really well for me. Both rent easily and quickly to high quality tenants with the proper screening. I have heard that Lehigh is growing rapidly, so you might consider a home there in one of the nicer areas. Good luck!

@Jay Hinrichs 

Just looked up your BP podcast interview and am listening to it now. Love the timber business story! Very interesting stuff. Thanks for the input. Hoping to start flying lessons this spring. What do you fly? 

I'd also be interested in learning more about your peer to peer investment opportunities. How would I go about that?

@Cole Burley Just so you're aware. PMI drops off once you've paid 22% of the loan (assuming the value remains constant). There are other scenarios, but that's the most straight forward answer.

@Joseph Angelo

If I could do it again I would have done accounting or finance. Whatever you chose, specialize in something. I personally wouldn't do a general business degree unless you want an MBA. If you want a 4 year degree, I'd get it in something that requires you to have that degree to advance to the next step (usually a test) that puts letters after your name (i.e. CFP, CPA, etc.) or get you special privileges or access.