All Forum Posts by: Jeremiah H.

Just found something online saying there are 4 requirements. 

1- two methods of egress. Doors or windows

2- Ceiling 7ft tall in 50% of the sqft

3- 1 method of egress other than the entrance point (seems redundant)

4- 70+ sqft with all measurements being 7ft+

It varies from state to state, but in my experience it must have a traditional closet to be considered a bedroom

If your end goal is to "only" own 1-3 SFH to use as an early retirement I would suggest taking the 15 year version. This means you will need to save a potential of 3 down payments over the next five years if you wish to pay the houses off on schedule by the time you're 50, assuming you're 30 now. This shouldn't be difficult with a good income and having a goal in mind. You can be very picky since you will only be buying 3 times in 5 years. I would be surprised if you landed on break even with a 15 year mortgage if you did your research before buying. I believe you will end up with a small cash flow number, but the good news if you don't need cash flow in your situation. Don't forget when doing your numbers that once the first house is paid off you'll be able to snowball that money to pay off the second and then the third.

I would create a nice rainy day fund to help support these units. The main way you can get into trouble with these houses is not having money saved to help with larger expenses. If you are able to save 3 down payments in 5 years, saving for a rainy day fund shouldn't be a problem.

Good Luck with your plan!

You'll get far better results if you ask specific questions. 

Not surprised he didn't want to give you that info. The info you're looking for it out there though. My realtor sends it to me every time before I make an offer on a property. 

I'm on a few wholesale list here in Central Florida. I don't want to advertise for them here but if you want you can message me and I'm happy to put you in contact with them. 

Lesley nailed it. 

If you didn't already own it would you buy it today. I got this from Ramsey and use it all the time. 

I agree and I think that's where I'm confused. I didn't get the feeling you were chasing cash flow at all. I believe the Florida market will yield a better IRR over the long term, therefore making it a better investment overall, not just for cash flow.

Even is the appreciation market in NY was better then FL, which I don't know that it is, the cash flow is much worse. Would the added appreciation make up for the shortage in cash flow? I was assuming your money would perform better long term, not just short term, in Florida. 

Great article! I read it a few times to try and comprehend how that article solidifies the original poster keeping the NY property. I'm missing the boat and you are much more experienced than myself so I don't doubt you're correct but when you get a chance would you mind explaining it? 

I can't get my head around why his IRR would be better with the NY property involved, especially factoring in long distance land lording aspect.

Also, your original statement of "I don't understand why someone would sell an appreciating asset, that has positive cash flow unless they had to" is something I can't seem to grasp. When most of us sell a property it isn't because we had to, it's because we were seeking a better return elsewhere. I'm sure you've sold many properties that you didn't have to, right? 

Please don't take my questions as doubting you, I'm trying to learn