@Andrew Postell Thank you for your prompt response, I really do appreciate it. As you stated in your post you recommended that I invest into my 401k with my company and build an emergency fund before I start investing in real estate. The cool thing is I actually do have a company match and i'm contributing 10 percent into my 401k (company match+ my contributions). It was automatically set up when I first joined the company. Second, my emergency fund is in the process of meeting its goal. Thank you for the helpful information that you provided It definitely gave me some assurance that i'm on the right track. I do have a question, FHA loans include PMI should that be a concern when house hacking a multi family as a first time home buyer?
@Chris Mason Thank you for your prompt response, I really do appreciate it. Yes, I agree. The payment is hurting me and I'm trying to tackle it so it doesn't hurt me anymore. When looking at the numbers that you provided, It's crazy how a car loan can make a huge difference when buying property. The car situation is a little more complicated than It looks, it involves negative equality from the previous car I got out of. Getting out the car isn't going to happen anytime soon. I gave myself 2 years or less to pay off the car with the amount of overtime I've been working without burning myself out. If I calculated right I will turn a 6 year loan into a 3 year loan, so by June 2018(28 years old) my car loan with be paid off. My goal is to have 2 MFH by 30 years old. I've cut my expenses in half , and I stopped buying expensive aftermarket parts for my car, that will help with my savings and knock down my car loan so i can refinance it. My current interest rate on the car loan is 2.99%. The nice car I have is more for me, I didn't get it for the attention but more to help out if stress is present, It's just something that I can connect to. After my experience with car loans, I've learned a lot and hope to not make a mistake like that in the real estate world.
@Derek Jones Thank you for the welcoming, It is much appreciated. I agree saving is a must and I'm glad to make it a top priority! =) Thank you for your words of wisdom.
@Wes Blackwell Adding to what I said to @Chris Mason, the car payment is definitely hurting me but I was looking into refinancing it and lowering the car payment, could it possibly help with my first property and what i could buy, maybe? Only professionals like you guys would know. My goal is to have 2 MFH by 30 years old. Does it seem to much like a dream? The car hobby is still a part of me but right now I have put it off to the side while I focus on real estate and my job. I really do appreciate the feedback that you have given me it really did help out with my questions and concerns.
@Casey Murray Thank you Casey, the advice is amazing and I'm definitely taking it into consideration as I move forward, as much as I would like to get out of the car, I don't think i can at the moment. I'm trying to pay off the negative equity. The car loan doesn't match the kelly blue book value, you would think by looking at the car it would be worth 30k-40k, but like everyone has stated, cars depreciate so fast....maybe I can leave it outside and let a tree hit it and then I'd be free haha.
@Jake Weir Thank you for your prompt response and the great information that you provided to me. It is really appreciated. I do have a question about the Sacramento market. I understand it is very competitive, how does a first time home buyer that is interested in buying a MFH achieve that when going against all cash buyers. Any type of strategy that is used if the individual keeps getting out bought my an all cash buyer. I work in the field and I cover Downtown Sacramento, Midtown, South Land Park, Land Park, Oak Park, East Sacramento, Mckinely Park, Tahoe Park, Rancho Cordova, and Arden. I see a lot of properties for sale that I don't see on Zillow etc. I see the atmosphere through out the day because of the work I do, would it be easier to buy a MFH in a class D or C(less competition) area compared to an A or B, if i'm just looking for cash flow. I will not park my nice car where its visible, Ill probably store it in the garage, and buy a cheap pick-up(daily driver) for hauling stuff etc. Then as the year goes by Ill start looking for my second MFH is a little bit nicer safer area.
@Amy Beth Thank you for your prompt response, it is much appreciated. I understand that not having the car would make things so much easier. I wish it was as easy as it sounds, but the car situation is more complicated than it sounds as I stated to the other members. I've been working Holidays and overtime these past few months to really get out the negative equity and try to re evaluate the situation and maybe refinance it if it will help me towards real estate. Thank you again for your advice.