All Forum Posts by: Gerry Harris

If anyone else could help me understand just a little bit about the transferring of the security deposits from 1 landlord to the next that may be helpful.

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This Property is in Ohio. All units are currently rented. Rents are fair, could be higher. I am doing some reading on the landlord forum as we speak, But any information and advice on buying my FIRST rental would be helpful and much appreciated.

Thank you

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Originally posted by @Jim Cummings:

@Gerry Harris. Congratulations for working to take control of YOUR LIFE!

My recommendations would be:

1. Put the $100K in an account making whatever interest you can at this point.

2. Do Not Make any Large Debt Payoffs. Utilize the Dave Ramsey "Snowball" scenario to begin paying off your debt. As per Dave Ramsey, start with the smallest one first, the second etc. Try to make the snowball work out of current income, supplemented by withdrawals from the $100K as necessary to keep on schedule.

3. If Houston, TX is in the future, figure out how to accelerate the move into 2019, instead of waiting for 2020.

4. Reading between the lines, I presume, you are in Law Enforcement. Grit your teeth, tie a knot and continue with the job until you make the Houston move. LE Salaries are quite a bit higher in Houston.

5. Defer getting your RE License until you make the Houston move. Houston is a good market. If you are self motivated and persistent (sounds like you are) You should be able to do well in the Houston market. Ideally, your Significant Other will be established in her new job and give the 2 of you some financial stability, while you make the transition from current career to RE Career.

Good Luck and than for what you do for the public!

We all make sacrifices and I appreciate that Jim! I like the idea of putting the money in the bank before making any decisions or paying off large debt. Might actually be what I do at the beginning, before I make any decision on what overall route I take. I cant really speed of the process of the move too much at this point but not a terrible idea. Great input and advice and thank you for taking the time out of your day to respond

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Originally posted by @Alina Vengerov:

In my opinion, paying off all your debt gives you options and freedom. Considering how you feel about your job, the less recurring expenses you have, the more opportunities you have to explore other avenues. Without debt, you can be in a position where you allow yourself to take a pay cut in exchange for a job you are passionate about, for example. Or if you do end up moving to Texas, without debt, you can take a little more time looking for a job that you like, knowing that your bills have decreased substantially (this is assuming you have an emergency fund, of course).

As far as what to do with your 401k once you leave your current job, just roll it into a Traditional IRA. Make sure you do it with the help of a customer service rep from the company that services your 401k, to avoid any potential mistakes that might trigger a taxable event. I avoid a self directed IRA simply for diversification purposes. I don't want all my investments to be in real estate, so I invest my 401k solely in stocks.

In any event, good for you for wanting to think this through and do your due diligence.

Good Luck!

Thank you Alina for the wonderful response. And for taking the time out of your day to read most of my responses and post! Also for the great advice on the 401K much of which i did not know. No debt does give me freedom, this is an avenue I have thought about heavily. Most of all I have gained confidence from people like you and this thread and conversation. So whatever I decide to to, I feel like its going to work out.

Thank you also for the compliment it means a lot, because that is exactly what I want to do is my due diligence.

Sincerely

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@Armin Nazarinia I appreciate the kind words and encouragement means a lot! best of Luck to you also!

@Nadia Clark Thank you very much for sharing your story, I do agree that house hacking and paying off debt are probably my best options to achieve happiness and financial freedom. And yes after my accident my understanding and priorities in life have changed gravely! Some people may not understand that, none of us are guaranteed tomorrow so why waste today!

@Jamiel Strickland Thanks buddy I appreciate the high energy and motivation! I am starting to see paying off too much debt with most of the money should wait , see what I can do with as little amount of money as I can and reevaluate after that.

Sincerely

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Originally posted by @Trey Brown:

@Gerry Harris

That's awesome. It sounds like you're on the right track.

You should also read The Automatic Millionaire if you haven't. I personally think that anyone with debt (especially bad debt) should read that book.

Best of Luck!

Thank you I will read it!

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Originally posted by @Jake Diamond:

@Gerry Harris I would pay off all of the high interest loans. Pay as much as you can and save a big chunk for a down payment.

However I would keep the money in the bank until you find a property you are interested in. If you’re using a bank, they will tell you what debt should be paid off in order to close. I would make paying off debt your priority. Once you’re debt free you are in control to quit your job and do whatever you want.

I currently work in LE in a maximum security psych center. I work countless hours of mandatory overtime. I hate my job. I have paid off my debt and own 6 apartments. I am going to use my job to grow my portfolio. Once I am able to live financially independent I will quit my job. My goal isn’t more money, it’s freedom.

Good luck to you !!

Thank you very much for what you do! No one typically says that to us so I want to say it. And I agree I am going to have to suck it up and stay at this institution for a while longer than I would like. Also thank you for sharing your story, Its awesome you own 6 apartment. I quit working overtime at my place, and started focusing that time on investing in myself, by getting my RE license, learning about investments and reading to help make my over all life better. I am hoping the time I am putting in myself will be compound interest and be worth much more than the overtime I would have worked.

Stay safe brother!

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Originally posted by @Trey Brown:

@Gerry Harris

The first thing you need to decide is if you're disciplined enough to use the cash-flow you intend on buying to build wealth. Whether or not you should quit your job is irrelevant until you can look in the mirror and honestly believe that you have the right mindset to become financially free.

To be frank, you should already be out of debt. $45k/year is ~$3,750 per month. Even if you were in a 30% tax bracket and took no deductions, you still have a surplus of money each month after living expenses. Had you put that surplus towards your debt, over the 5 years you've been working, and you'd be debt free. What makes you think more income is going to change your life if you're not already in that mindset?

If I were you, I'd put that $100k you're getting into a CD, even if it made 0%. Figure out how to pay off your debts, with the income and expenses you already have, and make it automatic. Once you've become disciplined enough to live like that, then you can decide if you're ready to invest. But until you're mentally ready to not look at the cash-flow as income, but instead a catalyst for wealth, I don't think you're ready.

Again, not trying to be rude or anything, but I think you're putting the cart before the horse.

This is a very well said thought. Not rude at all and I appreciate the advice and looking outside the box, to some of this there is truth. The only problem is that 3 years ago when I was involved in a car accident, I was making more like 40K a year, not much of a difference I get it, but 6 thousand is about $300 extra a month. I was forced to purchase a new car and inquire more debt at that time. Doctors visits and co pays and some travel, plus time off work are all costly I also was in a different situation living with someone else and scraping by to pay bills. About 2 years ago I changed my outlook and started focusing on exactly what you are talking about. I lowered all monthly bills and got out of my previous relationship and changed living locations. To be able to afford to make all my payments with extra money left over every month. I have saved up a nest egg for an emergency, Dave Ramsey says $1000 then start throwing the rest at debt, I felt more comfortable with $3000 just in case. So now over the past 12 months I am in a position to throw my surplus at this debt. and have been doing so. You are correct it is a mindset and thank you for reminding me of that.

I needed that!

Sincerely

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@Al Pat I like this idea and will consider the monthly expenses to get a better numbers. Agreed goals without deadlines are just a wishlist!

Thank you for the sound advice!

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@James Free I guess I should have listed my interest rates. Considering my car loan and personal loan are through a credit union that does not charge compound monthly interest on principal liek typical car loans . It charges 1 flat interest rate from the beginning of the loan and wraps it in for 1 total amount. So my loans through them are set, I dont save any money by paying them off early.

Interest rates for personal student loan is 7.75% and the other 2 big ones are 5.65%

I agree with your 2nd part in its entirety. Especially the reassessing part.

Thank you!!

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All Forum Posts by: Gerry Harris

Gerry Harris has started 3 posts and replied 24 times.

Post: [Calc Review] Help me analyze this deal

Post: [Calc Review] Help me analyze this deal

Post: 100k in the bank and 100K in debt

Post: 100k in the bank and 100K in debt

Post: 100k in the bank and 100K in debt

Post: 100k in the bank and 100K in debt

Post: 100k in the bank and 100K in debt

Post: 100k in the bank and 100K in debt

Post: 100k in the bank and 100K in debt

Post: 100k in the bank and 100K in debt