All Forum Posts by: Chris Armstrong

@Jessica Wood You could build a pretty sweet fort in the living room with $500K-1M in twenties. 

I would look at BRRRR deals and money lending if I had that kind of cash sitting in a bank earning less than 1%. Or giving money to syndication across different asset classes.

" Be cautious/fearful when others are greedy, and be greedy when others are fearful/cautious." ~Pretty Famous Investor 

Also, as mentioned by someone who I believe to be a 100% genius...stock up on that MCrib while you can...thats the future!! @Jim K.  best thing I have read all day...thank you

67% Real Estate (Single Family Homes)

16% Equities (S&P 500 Index fund)

17% Cash (rolled pennies)

I think that financial advisers don't recommend more than 10% because that means they get fees (income) from the other 90% of your money. I don't know why anyone would have a financial adviser anyways, seems like a 100% waste of money. My advice, just put money into low cost index funds, buy real estate (correctly), evaluate your budget and make necessary changes to your spending habits to save like 20-30% of take home income and boom there you go. I just saved you potentially 10's of thousands of dollars in financial adviser fees. 

@Louie Pullen

@John Semanchuk

Yea I never assume anything and really it doesn't matter to me what the home is worth in a year or two because the HELOC is based on what it appraised for right now. I like having income asset and now I don't plan to sell for years. The way I see it now is secured debt will turn into forced savings account that will be mature soon enough..

@Jay Hinrichs

To be fair, the assessment value is not based on 200K. It was reassessed last year for like 148-152ish. So once it gets reassessed it will be higher than that. Home just appraised for 209K. 

I have three others that were assessed for more than 152 and its like 24-2500/yr. Not Charleston County....Berkeley. 

Tons of expansion in this area so very rapid appreciation at the moment. Home will be worth more in the coming year assuming all things remain constant in economy etc.... 

@Jay Hinrichs 

@John Semanchuk 

It definitely was factored in to the equation with the cash flow projection that I made earlier. I pay about $720 per year as primary and it will go to about $2100 if non owner occupied. 

@Ellis Hammond I decided to get a HELOC on the property since I am living in it now, it will not have impact on HELOC even if I move as long as I establish it now. So I can enjoy cash flow while having access to equity for opportunities or whatever. Best of both worlds after I weighted out the options.

@Ryan E. @Kristopher Kyzar @Brian Anderson

Thanks for your input. Certainly things to consider before making decision. 

Will likely do hybrid approach of renting for 2-3 years and upgrading property via tenant rent payments, then selling. Its good to get different perspective though. 

@John Semanchuk The property is in X flood zone.

@Aaron K. What do you mean following the guidelines? I am not clear on that. Thanks for the response though. 

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Greetings BP,

Just wanted to see what others think about this situation. 

I bough a home in 2012 in Charleston SC for $119900.00 on FHA loan with 3.5% down, and I still live in it. Since then, it has appreciated to about $190-$200 k and rent would be somewhere around $1350-1450/month if I rented it. I got it on a 30 yr note @3.25% which puts the mortgage at $726/month with PITI & PMI.

So, the great question is should I keep it a rental or sell it and take the cash to move into another home and not be house poor with a large mortgage payment? 

If I kept it as rental, I would expect about $500 per month cash flow. This property would be a great rental and its in an great area that is growing fast. My only hesitation for selling (Probably a silly one to have) is that I have made money only with appreciation up to this point, I have not really had enough time for significant principle pay down which is another facet of making money in Real Estate. I feel like I should keep it for at least a few more years to realize some of that principle pay down, but I fear the implications of losing the tax free money if I sold it now as a primary residence .... 

The annual cash flow would be around $6000 and considering I have $17200 into the property (due to my contributions to principle pay down and initial down payment) my CoC return would be 33% or thereabout. ROE would be about 6-7%.... (based on $93K equity)