All Forum Posts by: Jake Thompson

@Caleb Heimsoth I am leaning towards selling, but only if that makes the most sense. I’ll be doing it locally (I just moved to Oregon) so I’ll be able to keep a closer eye on things. But, contractors, budgets, timelines, etc. are definitely unknowns that play into risk. I may end up flipping the first deal or 2 until my income is solid and I can actually qualify for loans when I refinance too... But the thought of giving up the $1,000/mo for unknowns is tough. The long term goal is $5,000/mo in passive rental income, so it seems counterintuitive to sell my only property. But if I can take the capital and use BRRRR to get more cash flow then I will...

@William B. If I’m using brrrr strategy I can use the same capital to buy multiple properties though and ultimately make more than $1,000/mo. I’m going to be applying to my state’s electrician apprenticeship program but I have to wait until November. I have enough savings and other sources of income to get me through to that point. Plus I’ll be earning rent while my property is listed and going through the selling process which takes several months.

Hi all, question about what to do with current property. I’ve got a duplex that cash flows about $1,000/mo. I could potentially sell it and walk away with about $40k in cash after realtor fees, taxes, and paying off loan. If I sold I’d be looking to implement BRRRR strategy so I’d be able to pull the capital back out. If successful I could buy many properties with that same capital. But the risk is giving up my solid cash flowing property. The other issue is I recently moved out of state and am working on getting another job. Because of this I’m depleting my savings and won’t be able to qualify for loan. I figure I could flip a house or 2 in the meantime until I get started in my new job. If not, I can keep the current rental for the income and then save up capital once I start working again. Thanks in advance, and let me know if I can provide any clarifying info.

You should refer to the section of your local landlord/tenant laws that address ghosts and other spirits. This can't be the first time this issue has come up! 

Thanks everyone for the advice I really appreciate it! I knew what Dave Ramsey would say but I was curious to hear from the BP community. The interest bearing debt is 2 auto loans.

I think the risk factor will be the ultimate deciding factor for us. We have 2 young kids as well so we don’t want to put our family in a bad position where we’re stretched too thin. We wouldn’t invest without having adequate reserves but I still think the advice is spot on to go ahead and pay off the debt first. Thanks!

I've got a similar dilemma except to pay off low interest debt vs invest. For you I'd recommend paying off the solar loan first then the car as most are recommending.

Hey BP community, my wife and I are trying to make a decision about how to best deploy our savings. We have about $25,000 in liquid savings, which is enough for us to buy a single family BRRRR deal in our target market. In an ideal world everything would go great and 6 months later we would have our capital back and be earning $300-500/mo in cash flow. Unfortunately that doesn't always happen. I do have some experience investing, but am by no means an expert, and I've never attempted the BRRRR strategy.

Our second option is to pay off around $14,000 of debt (low interest rate, around $4%), which would save about $350/mo in expenses, allow us to get closer to FI, and increase our savings rate. This is a guaranteed return compared to investing, but obviously not the most optimal as we could potentially get much better returns in Real Estate. We also could pay off some 0% interest debt which would free up another ~$200/mo (These are interest free cell phone/laptop financing). If we paid this off it would be after paying off the debt with interest first.

The most optimal route seems to be the BRRRR deal in terms of ROI, since in 6 months (assuming I can pull my money out) I could pay off the debt at that point AND have the extra cash flow.

Thoughts??

Congrats on your success @Brie Schmidt! I like what you said about living in a 5000 sq ft house and driving a fancy car. I think that's what initially attracted me to real estate, but now I'm realizing that having freedom of my time and the ability to spend that with my family is waaaay more important than fast cars and big houses.

Nicely done Jordan! I have a duplex that is cash flowing well, but I am playing with the idea of selling and taking the equity to reinvest in more units. I think buying a retiring investor's portfolio could be a great option!

Nicely done Bill! I had a rough crash course in land lording when I first started as well. Learned a ton though, and ended up getting a job as a property manager which has REALLY accelerated my learning. Looking to get my first flip under my belt as well. Thanks for sharing!