All Forum Posts by: Cameron Moore

Hi Everyone,

Let me start out by saying I’m new and trying to learn so please bear with me! To give a breakdown about my current status see below:

-I’m 25 with a fiancé and 1 yr old

-Credit Score is 637

-First time home owner (6 months in)

-Loan Balance is 199,740 @ 5.5% Interest

(1550 monthly payment) (FHA Loan)

-Appraised Value is 235,000

-Currently household income is clearing only $626 a month after bills & living expense.

*Doing a VA cash out Refi @4.125%

*Can get 30k back and monthly payment will lowered to 1427 and loan balance will be 237,590 (7,590 is VA Funding Fee)

**If I don’t pull the equity my payment will be 1250

Here’s my dilemma.. I want option 2 but my fiancé strongly disagrees (I want to run before I walk)

Option 1

-If I pay off debt that will allow us to clear 1497/Month (871 more)

Debts (other than house)

- 25k in car loan @ 6.79%, 420/month (bad choice I know but you talk to my beautiful fiancé and you’ll understand) 71 months remain

- 2.4k in medical @ 0%, 151.22/month, 11months remain

- 3.6K in student loans @ 6.55%, 70/month (who pays these anyways?) 60months remain

Total Debt 31K

Option 2

I buy a rental through my buddy who does that for a living (turn key rental sales and management)

I’m still learning the numbers so I’m sorry I can’t give you a better breakdown but here is what I sort of know:

-20K down on a 70K property and 15 yr loan

-Will clear about $100 after mortgage, repair cost allocation, & mgmt fee.

-after loan paid in 15 years, will clear about 1,300 month.

I know I can branch out and cash out refi the rental a while later but again I’m new at all this so I’m taking it at face value.

Maybe option 3?

-refi with no payout and snowball the extra 400/month into debt

Should I pay off all loans and wait to recoup 30k in 35 months [math 30k/871 (money saved)] then invest? Or Invest now while I use the 200/Month lower mortgage to snowball off my debts? I’m sure some of you feel like I’m stupid and overly eager and you’re probably right. I do not come from a financial savvy family so I’m learning as I go. I really appreciate any advice you might have for me!

I am purchasing a home at $205k and have 6,300 coming back to me as a credit in lieu of repairs (wrote up in an addendum.) The addendum states that the check for 6,300 is to be made to a contractor of my choice. I don’t want to pocket the money, but I do want to subcontract everythIng myself. - Can I be my own contractor? (longshot I know) - if not, is there a way I can get the money instead of having to hire someone?

@Arlan Potter the property has been paid for and the owner wants to stay. It’s a friend of a friend so the owner Is sellIng to me for cheap to keep their rent low. An FED is the first step In the eviction process here in Memphis. If they fail to pay then I can have them out in a month and I gave them a second chance.

Hey everyone, I might have a way to get into investing and help out a friend of a friend. Quick backdrop, found a tax deed sale, taxes owed are 12k, and property is valued at 90k total (40k for land and 50k for the house). I have a chance to get a quit deed claim and pay off the taxes before auction. The original owner will continue to live there and pay rent. Can be plain renting or rent to own. Some concerns are if the original owner tries to make me pay for repairs that are pre existing like roof, foundation, etc and of course if they never pay rent. I know an FED can be filed but at what point? Also what is a fair rent price if I only have 12k invested? Any questions, comments, or concerns please let me know!