All Forum Posts by: Greg W.

Where do you want to live? Invest there. It's easier to invest where you live. Your assumption about appreciation is right on even though it may not cash flow now. Buy something that will be in demand for years to come and rent to tenants you want to rent to (college, young professionals, families, grandparents). Doing a quick search, I see a bunch of duplexes in and around Austin available in the price range you are talking about, if that's where you are from and want to live in the future.

Buy in an area you want to live and renting to the people you want to rent to. Do you want to rent to college students when you are 30? That's some people's niche and it works for them. Is that you? You could rent to young professionals or to families. I would buy in the best area you can afford, to hopefully get appreciation over time. Buy where people want to be. If you can buy a fixer in a great area, that's even better. Also look at the rental laws in the areas you are considering, just so you understand what you are getting into and whether you are OK with them or not.

I would second checking your pricing. Look at other comparable rentals on Zillow and see how your unit stacks up. 

It depends on if you want to continue to be a landlord or not. If you enjoy it well enough, then keep it, since it seems like an easy property to manage. In less than 30 years you'll have a property worth close to $1M. If you don't want to long-distance landlord and find it to be a pain, then sell it, 1031 exchange it or owner finance, like you mentioned. I imagine your ability to find a buyer to assume your mortgage will be there for a long time, so there's no need to make a decision right now. You can revisit this every year if you so choose. The longer you hold it, the more principal you will have paid down. 

I filled out their survey and provided some constructive feedback, even though I don't own a STR here. I wish all the STR owners luck.

Yes, you need to save more money, but in order to save more, you need to make more. Get another job, get a higher paying job or start a business or do all 3. Start now. TODAY. Report back what steps you accomplished today and each day.

You should open a Fidelity account and deposit your money in a money market fund (SPRXX). The interest is much better than in a savings account at a bank. Have your paycheck automatically deposited into the money market. You can keep a checking account at the local bank if you want. With Fidelity you can also invest in their Zero Funds which don't charge management fees. So your paycheck goes into the MM fund, then once per month, you automatically move money to your checking to pay bills. That way you are earning the most interest possible for the longest time possible. You can also get a Fidelity debit card that absorbs all ATM fees, if you need cash. Schwab offers almost exactly the same products and I like them both. 

Then, you should be working multiple jobs to save up cash. You are young and you have energy, so work a lot while you don't have any other commitments or people depending on you. Maybe work in the RE business somehow; lending, assistant to an agent, the trades or start your own business like lawncare or landscaping to generate money. Income (W2/business) comes sustains RE, RE doesn't sustain income, at least for quite some time, unless you happen upon a unicorn property.

Then buy a multifamily place, use everyone's income to get a loan on it (there are financing programs around this) and have other people help to pay your mortgage. 

You can charge them a fee, but if they left stuff, they probably don't want it and won't pay a fee to get it back. You'll most likely just end up disposing of it.

I would maybe buy where you want to end up living, unless you want to own a rental in IC if don't live there anymore. Otherwise your hold period will be fairly short. She'll be busy with Med School and then it's residency. You'll want to live on the west side of campus so she can walk to school and not have to deal with parking. 

Go work for a property management company as an on-site cleaner, handyman, leasing agent, whatever. Work for a brokerage or an agent as some type of assistant. Same thing could be done with a design/build company. Or just shadow them during the year, without a a job, to see what the job is like and if you would want to do the type of work they are doing. A mortgage company could be another option. Try them all and see what you like.