All Forum Posts by: Jeffery R.

@Account Closed,

That's a tough call.

One of the things that I'm having trouble with deciding on is if it's better to use my cash to get into a place and finance it, or simply find a house with as much cash as I have.

If I buy a house with cash I will be able to save 90K in another 2 years.

If I finance a MFH it will take me a few months to get my 4% down payment and more than 2 years to get the 90K back.

Thoughts?

Good afternoon all!

I've often heard, "if I could go back" or "if I could go back to one moment and change X" everything would be different. I feel like I'm at that point right now.

Currently, I'm 28, I have a great job making decent money with the ability to save more about 50% of my income after taxes/expenses, I've saved more than $90,000 thus far. $70,000 of it is liquid with $20,000 tied up in peer-2-peer loans. I've been pre-qualified for an FHA loan up to $450,000 with 3.5% down and 3.25-3.375% interest.

I'm wanting to hear the BP's advice in my current situation.

Thanks,
Jeff

I've put in my second offer on a house!

Thank you @Paul Timmins, @Jacob Anderson, & @Jared Garfield!

Thanks @Kevin Hunter!

Thanks @Austin Youmans!

I'll contact some local landlords and see what they are asking income wise. Thanks for the clarity on household income. 

The BP renter screen takes care of Criminal Report, Credit Recommendation, Credit & Eviction Report.

I had on the listing no pets.

Hello,

I've got a potential renter looking at moving into my house. She would like herself, her fiance, her father and 2 children to move in.

If I use the BP renter screen will she be charged $35 per renter? $35 x 3 = $105 will be charged?
I'm renting it for $1200/month, what should I look for as far as income? $3600?
Should the income be from all 3 people combined or should one person make more than $3600/month?
Is there anything else I'm missing?

Thank you for all the guidance!
Jeff

@Ayodeji Kuponiyi I've done the CL test and I haven't received any response on my house when I put it up for rent. I looked at the comps and set my price accordingly. There is a 10% renter rate in the zip code and surroundings, so I might end up selling instead of renting as my neighborhood sells houses within days of listing.

@Roger Vi I have the reserves & extra cash flow right now if I were to buy another property and it were to remain vacant, but it relies on me continuing to maintain my job security/paycheck. Which is a riskier approach than I would like.

@Leigh Ann Smith Thank you for more insights into the cost of the tiny homes. I see this as a short-medium term situation (3-5 years). With the decreases in expenses I should be able to save the extra cash flow, and with the mortgage gone or house rented I will be able to save even more. My current mortgage is $800 and I have about $1000 left over after paying all expenses including myself. I see myself being happy in a tiny home as long as it's the layout I would like that could accommodate two people. I've liquidated my wroth IRA in 2016, since it's a wroth and it didn't make any capital gains (it lost money) I will not have to pay a penalty and should be able to leverage the loss on next years taxes.

Thank you all for your different inputs. The way I see it right now it's quite simple.

Options:

A) Buy an investment property and potentially make $4800 per year extra and stay in current home.
B) Buy a tiny home and live mortgage free, save the extra $1000 cash flow per month to invest in a bigger property and potentially make $200 a month off of my current home. Resulting in $14400 after a year.
C) Buy a tiny home and live mortgage free, save the extra $1000 cash flow per month and sell my current home to profit a conservative $5000. Results in $17000 after a year.

My 3-5 year goal is to have apartment/condo units. I feel like I can save more money within 3 years to put towards my first real investment property by decreasing my liabilities now rather than try and buy a property that could only result in $200-$400 a month in extra earnings. But if I'm completely off in my train of thoughts please let me know.

@Ayodeji Kuponiyi I definitely am trying to base my options with the $ in mind. The tiny house way gives me a lot of cash flow (as long as my house is rented), but if I run into vacancies with another 100k home the numbers won't be in my favor at all.