All Forum Posts by: James Babin

@John Mocker

Thank you for your reply, John.  My roofer recommended using a public adjuster that he uses for this specific scenario.  It's apparently a very common issue when it comes to asbestos roofs. 

In a stroke of bad (but potentially good) luck my property was hit by a tornado and a fair amount of damage was caused to the front porch due to an oak tree falling on it.  The roof of the porch is asphalt shingle while the rest of the roof for the house is asbestos tile.  Here in New Orleans, many of the old houses still have asbestos tiles.  A good bit of the tiles were damaged. 

I have filed a claim and the adjuster is coming next week.  I have also been speaking to many roofers and one of them is recommending that a public adjuster get involved ASAP, as any insurance company (in his experience) is likely going to fight full replacement.  The argument, however is that asbestos cannot be repaired and must be replaced.  I have gotten many quotes from roofers and every single one of them have said the same thing. No one will repair. 

Public adjusters are a new concept to me and I don't fully understand it.  Does anyone have experience working with a public adjuster?  Is it a good idea to get them involved and meet with the field adjuster?  

I'm a little new to understanding the benefits of a Heloc, especially when using it as a downpayment.  Strictly from a cash flow perspective, wouldn't it be beneficial to use cash from a refinance to fund a downpayment as opposed to a heloc?  With a Heloc-funded downpayment you will be paying off the Heloc + your mortgage debt which would reduce cash flow.

@Nathan Faucett I have heard of Yotta but not PrizePool.  That's an interesting concept, I would be curious to know the % odds of getting a prize would be! But I guess if the interest rate is better than a money market then there's no downside in that arena. 

I don't know anything about loaning from a 401k but I have had some friends do that to buy their primary residence I believe. My company uses a SIMPLE IRA plan and I'm not sure if those plans have the same capabilities. I suppose it's a powerful plan if 50k is the max you would need to your next purchase, or if you mix it with other cash savings/investments. What are the rates and terms like for a 401k loan?

Hi Nathan, I have grappled with this question as well and many people I've spoken with/podcasts/books have different opinions on what's best. I think it's all based on your risk tolerance and timeline.

I think it depends how much you are looking to build up to put into your next property and how quickly you can do that.  If you're looking to make, say, a 20% downpayment max then it may not take too long to save up the cash (depending on your purchase price of course) in which case a money market account may be the best move.  

However these days with talks of rising inflation keeping cash could also become a risk. 

Here's what I do - and I am by no means an expert - I purchased my first property in November 2020 and am actively saving for my next.  Initially I started putting every bit I've saved into an S&P Index Fund and various stocks.  Now I am gradually shifting into cash and hope to have about 50/50 between cash and investments when I start actively looking again.  Ideally my plan would be to use all of the cash and some of the investments to purchase the property.

I hope this helps - I always love hearing how others approach the issue.  

@Corey Gregg Ask your lender but there are loan limitations with FHA. I purchased a duplex in Orleans parish last year and I believe the limit on a duplex was around 420k at that time.

Nice to meet you Josh! I'm also a new investor, just purchased my first property in New Orleans.  Always looking to connect with others that are just starting out as well.  I spent 5 years in Baton Rouge for my architecture degree at LSU and have lots of family there.  Geaux Tigers! 

Sounds great, looking forward to it!

I live in NOLA, just recently began investing and plan on going - can't pass it up if it's in town!