All Forum Posts by: David Fern

As a long-term hold investor, I see this property as -$600/mo to -$800/mo depending on whether you use a PM or not. This includes cap ex, repairs (will a renter leave the property in the same condition you hand it off in? Not likely), vacancy (@ 8% for me), and a possible PM (10% normally).

I recommend you reach out to a local seasoned investor and have them run your #s with you, as the #s depend on how you manage it (how hands on you are) and also local pricing. But that’s what it would be in my area. 

I also don’t like renting really nicely rehabbed properties, most renters don’t take care of properties as well as we would hope. I would consider selling, i’m not necessarily saying you should, BUT only hold if you have a very strong belief in the appreciation of this property. 

Also, I would only rent your friend if you think they are your best possible tenant. Don’t do any favors, this is your business, so treat it like a business. Good luck!

This was not a loan assumption as described in OP’s post. It is subject to. Very important detail.

Keep your 9-5 job to save money to purchase real estate. Live way below your means and save the majority of your income. House hack until you have kids. Work your 9 to 5 for several years and in your free time grow your real estate business on the side. The reality is most financially independent people went through a decade + of working 60-80 hours a week. A very small percentage do it an easier/softer way. If it was easy, everybody would’ve done it.

IMO sell. It’s closer to -$1,000/mo cashflow. Too much red, too much equity that could be used better. As has been mentioned, try to find a way to keep as your primary for 2 years, and all gains are tax free at the sale.

Many people in these forums would gladly switch places with you, no matter how much you hate your job. I would focus on one of two things… finding a more tolerable high-pay work situation OR developing some coping skills to deal with your current working situation. I’d hate to see you walk away from that high an income and regret it.

@Corby Goade nailed it. I agree 100% with what he said.

@Edward James smith I invest in Spokane and I’m glad to chat. Feel free to reach out.

I work 2 jobs. 1 to live off, and the other for down payments. I've been able to buy a rental house a year for the last 5 years. I figure REI is like most other things in life… hard work and persistence will get you there. A tiny % of people can avoid the hard work by getting creative or lucky, but most have to work hard, take action, and be patient.

Based on limited information that is provided, I recommend saving longer, since you are unable to house hack. My wife and I also have kids and we are not willing to house hack either, it's not for everyone. Thus, I have worked 2 jobs (1 is self employment) for 7 years to fund purchasing a few single family homes locally. 20k is not enough to purchase IMO, that should be your savings AFTER your purchase. If you purchase with 20k you will be paying PMI and the returns are too low.
Stuff can and will go wrong. With kids and self-employment you need bigger reserves than others. 

@Sammy Sadovia

Welcome to BP, it’s been a great source for me and others. I invest in the Spokane market. I’m glad to help if you need anything, just DM me. Good luck!