All Forum Posts by: Account Closed

So, is there some reason you can't convert your crypto to dollars. 

Originally posted by @Brad Jacobson:

Great question @Alicia Marks! I have two immediate thoughts:

1. Most new investors have an amazing opportunity to get into the real estate game by house-hacking.  The best part of house-hacking is that any deal is better than no deal.  If you're able to divide your housing costs at all, it's better than not doing it 100% of the time.  Even if you can't find your perfect house-hack, buy one ASAP and start building that equity and savings rate.

2. In my local market (UT), analysis tools like the "1% rule" are impossible to achieve.  Nevertheless, I continued to buy properties that didn't meet the standard criteria and found that all I had to do was invest from a position of strength (with good reserves) and sit on the properties for a year or two before they became incredible investments.  Properties I bought prior have up to $800/door more cashflow now than when I bought them.  They weren't money makers at first but have turned into the best financial decisions I've ever made.  

In other words, don't wait to buy real estate, buy real estate and wait!

Good luck to all!

That's one hell of a lot of rent growth you were able to achieve in 2 years. Someone reading that needs to be careful, because if they house hack or buy a skinny/no cash flow deal with the rents in place being already at market rate, they don't have a reasonable expectation of that kind of growth. Especially in rent controlled markets. 

Is it really "analysis paralysis" when you run the numbers on a property and they don't pencil.

You could be waiting the rest of your life. Would love a crash myself, but real estate prices just don't rip north and south like the NYSE.

Saving money for most people is the same thing as the diet component of fitness.

Neither are about some gimmick or simple trick. You know what needs to be done- both require making a detailed budget and sticking to it over a long period of time.

Unlike market prices, this is one thing that IS under your control.

A cash out refinance without a deal lined up to place it, is nothing more than paying interest to sit on a pile of cash.

Most data is already on a platter for you if did an ounce of searching. Getting MLS access, or someone to share it with you, is basic.

The problem is all the rest of us have the data too. No one's going to leave a good deal laying around on the shelf. Now a days, by the time something is listed, unless you've got some renovation or custom strategy, it's price point makes it useless as a traditional cashflowing investment. 

Originally posted by @Michael P.:

You don’t really need an unfair advantage, just living in Michigan and willing to do your own work is advantage enough lol

 So exactly where in MI do you think these markets are that are so easy.

The heart of what you are asking is simply whats the better use of the 126k+ in house proceeds- get the debt monkey off your back, or use the money to generate income to pay the debt monkey.

If you could get 14.3% on the 126k it would fully pay the student loan and leave you with your principle. Not a very realistic expectation is our low yield world.

So your dilemma boils down to investment quality. Same story for most of us. On that-

"This will be my 3rd property that I've purchased in in last 5 years, so
its been really cool to see how the dollars from my first home
purchase in 2017 have grown to what it is today. This is the appeal of
real-estate to me because I could never get these gains from the market."

if past performance could predict the future investing would be brain dead easy. You can't count on that same rate of return as a given going forwards. The last 3, have been some very exceptional years.

If it were me and I could get 7% on that 126k- which would be damn hard right now without more risk than I care for- I'd take it and let it pay half the loan every month. Icing on the cake would be if the asset value grew over the next 7 years as well.

Originally posted by @Jaideep Balekar:

@Account Closed depends on the city - in Autin TX, in A/B class, you are paying $250k - $300k per door. But even in the midwest, its almost impossible to find something, even distressed in B class areas for about $50k per door. Now its $75-80k per door minimum. Crazy market!

Hi there, and congrats by the way. 

I'm in SE Michigan and to get below 50k/door I'd have to go to some really lousy areas. True class A/B- Birmingham, better parts of the Pointes, Bloomfield hills, and the good parts of Ann Arbor- there's just no way. Even Royal Oak, which I'd consider B, not gonna happen.

This is the dilemma I'm facing here. I just don't want to put good money into a crap area, even if it cashflows.