All Forum Posts by: Derek Howe

Hello!

I've been reading "The changing world order" by Ray Dalio, and listening to some podcasts related to the subject of the declining US empire, and I'll admit it has me wondering if everything we hold true about long-term investing may be in for a shakeup in the near future

What I'm trying to decide is, should I sell a rental duplex (I have 2) and pay off my primary as a defensive measure? My plan has always been to have these properties as long-term holds, and I know selling this early (purchased in 2019 at 3.25%) and with such a low interest rate goes against conventional wisdomw, and I dont really want to, but as I learn more about where the US is in the long-term debt cycle, the more nervous I become about a catastrophic devaluation of the dollar, job loss, civil strife, etc

Can anyone offer any advice for how to model or weigh the options on something like this? I would be very appreciative!

Thanks everyone!

Derek

Thank you @Erin Spradlin & @Jeremy Gaal! I think it's becoming more and more obvious that I need to start pounding the pavement and looking for off-market properties

Thanks @Jeff White, @Matt M. & @Ola Dantis! I appreciate the time and advice!

@Jaron Walling Thanks for the advice and motivation. I do think I need to start working harder to uncover the "deals" out there instead of waiting for something to happen! 

@Whitney Hutten Thanks very much! To your question, I'm looking to play the appreciation game more than anything, cash flow is a bonus. The main goal is to find a place to park our money while we're still working and don't need so much on hand. The problem I had with out of market is that we're trying to stretch our dollars as far as possible by acquiring using the owner occupied financing method. With work, we're pretty tied to Denver metro. Over the past few weeks, I have started to think more and more about out of market, although paying the full 20-25% would definitely leave the coffers closer to empty than not, at this point. Thanks again! 

Hello Bigger Pockets! My fiance and I have been living in our first property, a duplex in Lakewood for almost 2 years now and are ready for the next move. Our current strategy has more or less been the BRRRR method, look for a duplex-quad, or possibly SFH, use owner occupied financing, fix it up and move on. At this point, we have a large chunk of cash, good credit and solid incomes from work plus the duplex. However, I just can't seem to get any of the multi-family units we've been looking at to pencil with any kind of cash flow cushion. Cash flow is not the primary motive in this case, but I look for it to provide a buffer for unforeseen events, rent compression, etc. I'm now looking at SFH as we'd be ok living in one for a few years while the market settles and we start a family, but not having a ton of luck there either. We all know how hot the Denver market is, so my long-winded question is: is it time I change up my strategy? We don't need to move, although I would like to. Should we continue to stockpile cash and wait? Start working with wholesalers & hard money? Look out of market? I am honestly stumped and feeling a bit frustrated. Thanks in advance to all that take the time to offer advice!