All Forum Posts by: Jared Skov

@Andrew Neal We have a duplex and a SFH that we live in, we make 13 payments per year on both, (pay every two weeks), both will be paid off after 26 years. Planning on adding to the REI, but for now, just saving unless something attractive comes to fruition!

@Evan Wilberding Some great reads to start are ‘The Richest Man in Babylon’ and ‘Rich Dad, Poor Dad’, both inspired me. Is your college 100% paid for? If not, get a part time job to cover the extra costs so you graduate with zero debt. Whatever you have left over, throw into a low cost Vanguard fund, VTSAX is my favorite fund of theirs. You need a minimum of $10K to start, but look around on Vanguard’s site and you can find a lower entry fund. Even if you could find a way to deposit $100/mo now to get the compound interest started at your age, you in 10+ years wIll look back and decide it may be the best thIng you dId. Good luck.

My first investment property was a duplex for $330k in a B- area. Each side is approx 1200SF, 3/1.5 and rent for $1200/ea. I can't find any SFH for $165k that would rent for $1200. I would need to spend $275k to get that kind of rent on a SFH. It just made sense in my area to get a duplex, but I would love a 20+ unit someday...

@Robert Wooden I currently like Everett, WA. It's a really cool city with potential to get even better. It's next door to Boeing (walking/biking distance), 1hr North of Amazon in Seattle, 45 min North of Microsoft, only a couple hours South of Canada, and it's growing. Good infrastructure and ocean/mountain views. Bellingham, WA and Spokane, WA are close 2nd's for me... Good luck!

@Josh Ledbetter How many years do you have left on your 15 year loan?

3% is such a great rate I wouldn't consider paying it off early or starting over at 30 years at almost double the rate, let your tenants pay it off. 3% is so low it's barely above the current rate of inflation. Imagine the cash flow when it's completely paid off! You can make 6% on your money in the most basic Vanguard funds if you're bored, no sense paying down 3% "debt" faster than you need to. Most long term buy and hold investors look for properties that cash flow $100-200 per door, so you're doing good. 

Take another $50k Heloc and buy another investment property that cash flows if you feel like taking a risk on another investment property. Just make sure you know the area, you're confident in it's long term rentability, and that it's cash flow positive. Good luck Josh.  

@Brian Keeler DC, Atlanta, or wherever Amazon decides to build Headquarters 2. I personally witnessed what Amazon can do to a city. My wife and I increased our net worth by more than $250k in 2 years and our investments continue growing at a 15%+ clip. Amazon has gone from 5,000 to 50,000 employees in 8 years and anytime you add 50,000 6 figure jobs, it naturally increases rental rates and overall real estate value. I could be wrong, but I don't see Amazon disappearing anytime soon... I just wish we were in a position to buy more in the Seattle area 5+ years ago! Good luck.

I think 'rents always go up' has historically been true for the long run, buy and hold investors. Rent is more than it was 20 years ago. If most people could've leveraged more and purchased 1000 doors 30 years ago, they would've looked insane then, but geniuses now. I'm in it for the long haul and looking to acquire as many doors as possible before the age of 40, 100% paid off by 60 and FI/RE in my 50's. 

Why are the college costs on you? Your girls will get a grant of some sort for having a single mother, and with good grades they should be able to get some sort of scholarship. Put some ownership on your kids, they can work a job during school to help pay for a majority of the remaining costs and take student loans out for the rest if they still need more. 

If you really want to help out, tell them getting good grades in High School and applying for grants and scholarships will be the easiest thing they'll do there entire lives, if they're not motivated enough to do that, maybe college isn't a good option for them now, or start with a Community College. Regardless, I wouldn't stress too much about it, just get your girls pointed in the right direction and see what happens. Rent your place out and use a HELOC if they end up needing financial help, pay the HELOC back with your rents. Good luck!

Quick poll - How many people have borrowed against their 401k for Real Estate Investing and do you think it's a good idea or no? Personally, I act like I can't touch my 401k to stay diversified, but I have friends who have borrowed against it to join the REI crowd and I would love to take a chunk out to house hack a Multi Family. Would love to hear some dream scenarios vs. horror stories!

Take a HELOC and house hack a 2, 3, or 4 unit with only 5% down as your primary residence. Live in it for 1 year, then repeat...