All Forum Posts by: Dave Rosa

Hi Brent. I listened to Podcasts every second I could, and still do! Anytime I could get it in at work or driving, researching on my computer, etc. I tried listening while I was sleeping but it didn't work. lol

I learned so much for Podcasts that I decided to start one myself interviewing others to tell their story. 'Highly Leveraged' podcast anywhere you can find podcasts if you want to check it out.

Best of luck!

Dave Rosa

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Looking for investors to tell me their story of how they started.. Good or bad, how well or badly your 1st, 2nd, 3rd deal went. Real life scenarios create great teaching for newbies.

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Rookie here.

We have one Single family home we are renting out short term, we got the bug and took out more money to get into long term rental. We took out a HELOC in the past couple months as well as my 401k. I was scared away by the pandemic but I'm itching to invest this money.

If you had $120k to invest today what would you do? Wait and see with Covid-19? Use part of the funds now and hold on to the rest? Go all in? My concern is buying a vacant property and not be able to fill it, or taking an existing tenant that takes advantage of the Pandemic situation.

Thank you,

Dave

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Originally posted by @Bob Daniels:

The general consensus is that the 30yr option is the better route to go if you are trying to grow your business as it gives you more cashflow to continue to purchase your second, third, fourth etc property. If you want free and clear properties, you can always pay your 30yr loan off faster and pay it like a 15yr loan, but you can't pay your 15yr loan as if it were a 30yr. This gives you the option to not have nearly as high of a payment should you ever hit a rough spot financially.

Also you aren't really "saving" 35k by paying it off faster due to the time value concept of money. To put it simply a dollar is not always a dollar. A dollar today is worth more than a dollar 10yrs from now, which is worth more than a dollar 30 years from now.

Since you are paying a 15yr mortgage off faster, you are using more "today dollars", as opposed to a 30yr mortgage which uses more "tomorrow dollars". Due to inflation if you owed $1000/month, 30 years from now that would only be the equivalent of $411 worth of actual purchasing power if you assume a 3% rate of inflation.

Finally, paying off a loan faster essentially means your money is earning the rate of interest on the mortgage. If you had 10k in cash, would you pay down a loan with a 4-5% interest rate, or would you invest that 10k towards your next deal? Most people would invest it in their next deal as they can earn significantly higher ROI than a meage 5% interest payment savings.

Very well said.. Thank you all for the input.

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First, I'm kind of new around here, is there a search bar I haven't found? I'm sure this question has been asked 100+ times..

We have one Short term rental property right now with a 30 year mortgage. Looking to buy another property in January or February for long term rental and thinking about a 15 year mortgage. The property we're looking at would still cash flow, only looking at a $55k mortgage after down payment estimated an extra $134 a month in mortgage payment to save $35k in interest. Seems like a no brainer, any arguments against doing a 15 year on a property that still cash flows?

Thank you for any responses.. Merry Christmas!

Dave

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Looking for a southern NH attorney that specializes in Rental Properties. Rather new to the game and looking to make sure I protect myself properly ahead of time. Thanks

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All Forum Posts by: Dave Rosa

Dave Rosa has started 4 posts and replied 6 times.

Post: How Do I Find Energy to Learn REI With a Full-time Job?

Post: Tell me your story of how you started... Good or Bad...

Post: Buy today or wait a few months?

Post: 15 Vs 30 Year Mortgage

Post: 15 Vs 30 Year Mortgage

Post: NH Real Estate attorney