All Forum Posts by: James Murphey

I agree with @Twana Rasoul I think it depends on your lifestyle, and goals and level of risk you are comfortable with. In Mark Manson's Book The Subtle Art of Not Giving a F**K, Mark describes only giving a F about things you know you are willing to suffer for, and knowing the level of suffering you are willing to endure. You should consider the investments, and the work that comes with them, and how it will enrich or constrain your life. It sounds like you are very entrepreneurial. I would consider the ROI, the work, and the impact it will have on your life good or bad. Hope this helps. Let us know how it goes.

@Abraham Anderson what was it that happened to drive you to be entrepreneurial at such a young age?  What influences guided you?  I would like to influence my son towards this path if possible.  Thanks for sharing!

I agree with @Greg Scully it depends on what your goals are.  If you want to go into the deep end of multifamily investing Brian Murray has a great book Crushing It in Apartments and Commercial Real Estate: How a Small Investor Can Make It Big.  I really enjoyed it.  He talks about bootstraping your investments, and the pros of not having partners on deals.  It would be a good place to start if you want to Crush It!

@Kris Marmol I plan on doing a house hack then doing starting to BRRRR. I am also reading David's 2nd book. I think it is the way to go. It is definitely not as easy as running to a lender with 20 percent down for a rental that cash flows, but it has so many advantages. With that said I am looking to BRRRR in East Tennessee where property is much cheaper than CA, and mistakes are not as costly. I also plan on using my own money to fund the BRRRR process. I agree with your thoughts on getting the experience out of it. I want my black belt in real estate, and I think BRRRRing is the way to get it the fastest. As long as you do not make a crucial mistake like paying a contractor everything upfront or paying way to much for the property the worse that happens is you end up with a rental that you can not pull all of your money out of. As long as I can get most of my money back, and end up with a property that cashflows properly I will be happy.

@Shiloh Lundahl The Number 1 investment one can make in my opinion is in themselves.  With that said one has to be careful in the way they decide to make this investment. @Jason D. 50% of college graduates do not end up in a field that their degree is needed for. College in my opinion is a toss up if you are not calculated in the decision. If you go into massive debt, and end up not being able to get a job you can end up paying student loan debt that you can not default on for a lifetime. A out of state B.S. in psychology will most likely not have a good ROI, and will probably cost you a ton of money throughout life. On the other hand getting a in state B.S. in chemical engineering can be very lucrative.

Also, the qualitative benefits from investing in ones self are hard to calculate the ROI on. If you read a book, or have an eye opening experience that changes your life forever. That could be more valuable to you then anything. There could be a book or mentor that change perspective that end up making your tons of money, or makes you look at money and life in a very different and valuable way.

@Tyler Minkel I am looking to do the same thing myself.  Cutting on cost from a realtor is great, but I would be more concerned with getting a good deal then saving 3-5%.  You could easily recover that in a few months with a good househack.  I would make sure you run the numbers twice. Once with you living in the property, and once with you not living there.  Make sure you include property management, maintenance, cap ex,utilities, insurance, and landscaping for when you are not living there.  You want to make sure you could move out of the property and it would still cashflow. When looking to househack I do not include property management, or lawn care since I will be doing this, and I lower my estimates for cap ex, and maintenance since I will be taking care/repairing these items too.  If you are looking to buy in a popular area maybe consider doing an Airbnb.  Those numbers even given turnover, and vacancy can sometimes be much more lucrative.   

This book House Hacking: The Only Real Estate Investing Strategy You Need to Build Wealth, Live for Free (or almost free), and Make Money Through Homeownership is a great place to start.  Especially if you have the ability to Airbnb.  Hope this helps.  Let us know how it goes.  

"If something is bothering you, and you can do something about it then do not worry about it.  If something is bothering you and you can not do anything about it then do not worry about it."  - Dali Lama

I love this quote.  It is a great reminder to concentrate on the things I have control of influence over, and to let the rest fall where it may.  Once I have done everything in my power, I must have the ability to let go.  Very similar to the serenity prayer.  

God, grant me the serenity to accept the things I cannot change,
Courage to change the things I can,
And wisdom to know the difference.

@George Lods I believe that is a Randy Pausch Quote.  I love that book The Last Lecture.  Probably one of the best guides to living a good life.   

I would make sure your reserves are adequate.   At least 6 months of expenses available, and just accept the fact that you will most likely have to use it to fix some mistakes or unseen issues that will arise.  I would think of it as my RE Tuition.  This is what I have to pay for the hands on intern part of my education.  Hope this helps.  Let us know how it goes.  

My reason is to have enough cashflow to replace my families income.  Not so we can quit our jobs as much, but to have the option to take time off to pursue something new.