All Forum Posts by: Caleb Heimsoth

@Jose De La Macorra. As others have said you are making this too complicated. You could seller finance it with zero money down at 0 interest for 12 years at 1200 a month or pay something up front with a low interest rate.

At the end of the day you need to own it today, not maybe tomorrow. Anything short of that isn’t worth the risk.

@Ty Whitman I have been seeing people say they’re waiting for a huge downturn since 2016. I even called for a mild downturn at the beginning of covid and I was wrong.

There isn’t really any evidence of a downturn anytime soon. Keeping to much cash is definitely not a good idea

I would cash out refinance if possible, but it depends on your situation. HELOCs can be frozen by banks.  A refinance cannot as long as you make the payment.

If you leave your job or lose it you often have to pay that back immediately.  Liquidating it before 59 1/2 is a bad idea because you’ll pay the taxes and the penalty. 
Its not necessarily always a bad idea to borrow from your 401k but for the vast majority of people it’s a bad idea.

@John Kernen you are correct, borrowing from your 401k or worse liquidating it to buy rental property is not a good idea. In general, it’s a bad idea.

You can use money from your primary residence refinance and saved after tax money. That’s the best way to get started

@Nic S. Buying long distance is half the battle and that won’t be changing anytime soon. Think about it like this.. you lost money on rentals while the stock market goes up 15-20 percent this year. The opportunity cost of doing this year after year is very great

@Jason Malabute selling is your best bet. There is massive opportunity cost throwing more money after bad investments

@Juan Rivera yes my advice is very simple. Don’t buy turnkey property long distance. It’s not a good investment

@Jason Malabute are these properties long distance? Are they single family?

These issues will continue post pandemic, depending on the type of asset you own. If it’s long distance and In a “rental” neighborhood this will continue.

The market is very hot, I recommend selling if the equity is there

@Scott Benton I am still a youngish investor and have learned that developing tough skin when the market goes up or down (mainly when it’s down) and when things don’t go as planned is a skill I am still working on.

That being said paying that much ahead (6 months) in this low interest rate environment is not a good idea from a purely objective investment point of view. You can easily make 3X that return with minimal additional risk.