All Forum Posts by: Joe Garretson

Does it though? $50k at 5% compounded daily will pay $2563 in interest over 12 months. For the property, you'd earn $2400 in cash flow. You'll realize about $1360 in principal pay down with an 8% note not to mention potential appreciation and tax benefits. And then there's that nasty inflation number your cash is losing out too...

Real estate still wins.

 This is a math problem for me. A 6% return is where you start. Let's assume for numbers sake you've got that $100k sitting in the bank. Are you earning 6% on it? Probably not. You could invest in stocks and potentially earn more than 6%. This comes with zero control other than what you buy so the risk is growing. You could buy the property you mentioned and earn 6%. You have greater control, the ability to increase rents, the tax benefits, the appreciation potential. So some risk but much greater upside in terms of control. You can always go get a mortgage when rates come down so you're playing arbitrage with the interest. If you're earning 7-8% but your mortgage is less than that, what could you do with the cash you received from the mortgage? Spin it into more properties? 

The tl:dr is buy those properties with the cash and it opens up a ton of options. It's absolutely better than what you have it invested in now. In my opinion anyway.

Hey everyone. Long story short, I'm looking to purchase my first investment property. I live south of Denver and have about $25k ready to use. I've been looking for a long term rental in my area but investing in a STR might solve three items at once. My wife doesn't love the area I'm looking at locally, she wants to leave her job this summer and she is in love with "The Carolinas" as she always says. So it may be easier to get her on board with the purchase if she's handling guest interaction (job), the location (Carolinas) and buying our first property.

So my question is, using the funds I've got available for a 10% down vacation home loan, where between basically Charleston, Myrtle Beach and up into the Smoky Mtns would you look? I've put the Carolinas in quotes a few times because I don't think she quite knows what that means other than big front porches, rocking chairs etc. I'd be looking for anything in my budget with 2bd and a solid STR market.

Thanks for any guidance! 

Not sure if it's legal but I'd ask why the huge accumulation of CC debt. If they can provide a decent excuse (never a good reason for that amount of CC debt), then that could help. Long term govt job usually means steady income with little chance of getting fired. 

I'm in a similar boat in that I've not attended a meetup yet but there's a local group that just scheduled the next one on the 19th and I'm actually able to go to it! I'm an introvert by nature so while I want to go, I'm already freaking out about it. Ashley who hosts the rookie podcast constantly harped on getting to meetups and using this trick to make it easier: find somebody here on BP, on the meetup page, the Facebook page, wherever this group has a social presence and "befriend" them before you go. In other words, have a familiar face you can search out when you get there so you're not just walking into a room full of strangers. I'm doing this very thing right now messaging with another local investor who's here on BP. 

Aside from that, just be yourself! And even more important, just get there! Go, talk real estate the rest will fall into place.

Hey @David R Duitsman, fellow 40 something just a bit north of you in Castle Rock. Wish I would have found this real estate investing stuff in my 20s but better late than never. I've got a goal of financial freedom by 55 so I can walk away from my corporate job if I want to and move abroad since I'll be a dual citizen by then. 

I'll send you a connection request and who knows what will happen from there!

Doesn't this concept take YEARS if not decades though to truly provide any benefit? I've always been in the camp that whole/universal life policies are fantastic - for the selling agent. The purchaser gets shafted with insane fees and overcooked promises. Maybe I'm wrong?

Is this truly better than just budgeting, spending wisely and paying yourself first and saving? 

The only chance any of these loony bills don't end up law is because our illustrious governor has national aspirations and he gets really squishy if stuff looks bad for him. Otherwise, a super majority, a left tilting populace getting bluer by the day... 

 The Colorado Legislature just said "hold my beer." 

They have a laundry list of progressive do good, feel good, type bills that will absolutely make it through and get signed by the governor.  Nearly every one of them is bad news for landlords. 

This state is doing everything it can to challenge CA and all the other extremely liberal states for the title of least landlord friendly areas. 

I for one, will not be buying an investment property here any longer. Too damn risky. 

Hey @Judd Meng, fellow 40's guy here getting started. It would have been great to get started younger but time to stop "shoulding" all over myself...

I'm in Castle Rock up the road from you and the market along the Front Range is expensive. I've been looking south into Pueblo and maybe the fringes of the Springs but I may end up going out of state for my investing. I've got two areas of interest based on family and the company I work for that will provide a lower price barrier so the capital requirements are significantly less. 

House hacking is a non starter for me as I've got a 13 and 14 year old in school here in town and I can't justify the upheaval my family would go through for getting a rental property. Quite frankly, I get annoyed at how house hacking has become the de facto answer for getting started. It's not the silver bullet solution many throw it out there to be. 

Some things to consider. Are you saving every last penny you can? Do you know where all your money goes right now? Do you own a primary home? You rent? Drive a fancy car? Have an expensive cable budget? Pushed a for raise at your job? You can probably scrape together more capital than you think by cleaning up your financial house. Start there. Budget. Stick to said budget. See what you'll be able to save by when and you'll be on your way.