I had a brand new 2015 mustang with a $700 a month payment (car plus insurance). It was before we decided to house hack a duplex and get into rentals.
Realized I should have never bought it (Long story, but basically ruined my credit in college and it haunted me for 7 years or so. When I had a good job tried to lease a new mustang, they rejected me even though I could easily make the payments. When my credit was fixed, went to the same dealership and bought a new one as a “win”). Enjoyed it for a couple of years and got rid of it, paid almost $6k to get out of it. Newer cars are nice, but useless when it came to real estate work.
I picked up an old 2005 dodge Dakota extended cab for about $6k. Worth it. It’s a beater so not worried about any damage. Has a bed cover to protect from rain and theft. Don’t know what I would do without it! Needs some maintenance every now and then, but still cheaper than my “new” car payments.
Learned my lesson. But now at 8 units, thinking in a couple of years or so about getting a 3 year old ram (2019 model). Thinking about future family, hauling a camper, and still maintaining our properties. It would be a little reward, but I’d spend a lot of time looking for the best deal for sure and try and pay cash if it made sense or put at least $10k down.
The only negative about a beater is I’m a part time agent aside from our own investing and W2 jobs. Doesn’t give the best impression to high end clients so I usually work with coworkers and other investors who don’t judge my beater! Lol
