All Forum Posts by: Janelle Hicks

I'm seconding New Mexico. I'm in the southeast- rents are holding high so far and cheap houses and multifamily can still be found. Lots of other industries now or in the future ( oil and tourism bad now, but nuclear storage, solar/ wind energy, potash, and agriculture are still up and running).

Anyone considered taking $$ from their 401k? I know it's a bad time to take it out due to the stock market dive, but with the 10% penalty removed I'm tempted. I think the penalty is removed through December? So maybe I could wait until then and see if the market goes up. I know it said you must have a hardship related to the disease, I think probably it won't be that difficult to prove that. Or a loan might be a good option too. I am 32 and expect to be living off my rentals long before retirement age, and it would make things a lot easier to have access to the cash.  Anyone else thought about this? I haven't decided to do anything yet but I've been thinking...

Do you think there is time to process a normal HELOc or are banks about to stop doing those? Would a figure loan be more prudent just because it is quick?

David Barnett-  definitely the plan would be to invest in another area. This are a has other industries ( tourism, nuclear energy, and potash) but I want to diversify for sure. I was looking at maybe Easter Washington or Florida. Hoping to pick up a deal if the market does fall. As for employment, I work for the WIPP site, so unless we as a nation have decided to no longer monitor the only long term nuclear waste storage facility in the world, I expect to keep my job. My husband is an attorney- so as long as there is crime he has work.

So I live in the Permian Basin, and we are getting hut hard by the drop in oil prices. Right this second my house is worth about 260k and we owe 130k. I had planned to do either a HELOC or a cash out refi to have cash on hand for investing more, but with the current conditions I expect it will soon go down in value. I also have 2 rental properties that have been doing well, but will make much less ( still cashflow $300/ month each) if mass layoffs occur and oilfield workers leave town. And I and my husband have good, secure, well paying jobs and some cash reserves. We plan to live in this home at least 2 more years, more if the economy is awful. Given all that, would you still take out a HELOC just to secure some cash on hand to take advantage of the potential downturn in the market to buy more investment properties? Even if it put you at risk of being potentially underwater on your house? Would a Cash out refi or a HeLOC be better? I've also looked at Figure.com for their HEL loan, just because with everything going on I'm attracted to the possibility of a 5 day close.

Airbnb just notified of a worldwide full refund on cancellations through April 14. I'm betting it will be extended. On Airbnb forums people are losing their minds. Probably because a lot of people are going to lose their homes because they depends on hosting to afford their mortgage- not wise but still the case. If it ends quickly maybe not, but I guess we wait and see.

I don't know. I will be honest I am a bit scared. I was still in college in 2008, so I'm not sure what to expect. Now I have 2 airbnbs in an oil-boom/tourist town in New Mexico. (Perfect industries for the current crisis lol!!) I just finished my BRRR refi on the second one, and got my first COVID-9 cancellation today. If oil dies down for more than a couple months, housing prices will crash. I left 25% in each but how do you know how far prices could drop? And I ran my numbers conservatively, so I can cashflow as long as I am booked at least 8 nights a month, but if the pandemic shuts tourism down, will I even get 8 nights a month? Or maybe I can switch to long term renting and hold down the fort? I can sell maybe but I'm not sure that is the right strategy. Basically I'm worried and I'm not 100% sure what my next steps should be. If things turn for the worst maybe I will just up my hours at my current job (fairly recession-proof) and hang on until things improve. I do have some reserves from the refi, an 80k heloc on my primary (that I'm afraid to use in case prices fall too much), 401k reserves I prefer not to touch, personal savings, and the option to trim our budget substantially. I will be following closely on here to see how more experienced people are wading through this and what they suggest, and hoping it all blows over quickly.

i spoke too soon. Got my first coronavirus fear cancellation my bigger concern right now is oil/ gas. Our area was booking, u get the feeling that may slow quite a bit.

Ok well welcome to town then!

Thanks guys! I think the only options for me would be online programs, but I definitely am leaning towards going for it. I feel like I might as well given the low investment cost and the potential upside!