All Forum Posts by: Joey Allison

@Michael Corso thank you for your input. I’m strongly considering that.

@Ian Walsh thank you. The end game for me is to replace my business income that is generated by hustle with passive income. 

@Josh Adams paying off the 2 cars would net me $1200 per month in extra cash flow. Paying the properties off, would get me another $1,000 per month. So I can free up about $26k in cash flow if I pay off the 2 rental properties and the 2 cars

@John Clark I will probably walk away with $225-250k. I have not spoken with my CPA to know exactlt what my tax consequence will be. 

@Bill Goodland I like it! I think I’m with you on that plan brother.

@Jonathan Gomez I was definitely looking for opinions on what you guys would do in my situation. Different points of views and opinions are always great to know. Thanks for your input!

@Josh Rogers It was semi-complicated but in the end, we had assets to help value the business worth. I am selling 60% of the company (my ownership) to my brother-in-law. I have heard the quickest way to value your business is by taking 5X your profit. Thats a general rule-of-thumb.

@Jonathan Gomez The property with $65k balance NETS $243 per month. The property with $86k balance NETS $275 per month. If I pay both properties off, I only increase my monthly cash flow by an additional $1,000 per month. There is no way in either scenario I can replace the $40k salary without taking another job, which I will NOT be doing. I plan to transition into more of an investor type role. I guess what I am trying to find out is this: Is adding debt for more income better than reducing debt for income. I can pay debt and save $$, or I can add debt and earn more $$. If I add debt, lets say $1 million in real estate and use the $300k as a down payment, I can reap the benefits of a monthly cash flow plus, if that $1 million in real estate appreciates even 2%, I generate $20k on paper. I would never have that if I simply pay off debt.

@Nisa Matsuyama There is $210k equity in my home, and both condos add up to another $95k in equity. The vehicles are worth what I owe. My wife brings home a NET salsry of $43k and my other business NETS an an average of $100k per year. Those are all the details. 

Guys, I am 34 years old. I will be selling my ownership in one of my companies for $300k. With this sale, I’m losing $40k per year in salary. I’m trying to see how you would invest the $300k. Here’s my breakdown. I have 2 rental properties. I owe $64k and $86k respectively. I own a home and 2 vehicles. Those payoffs are $440k, $30k and $30k. No other notable debt exists. My question is, should I use the $300k to buy as many rental properties as I can to replace as much of the $40k as possible? Or, should I pay off as much debt as I can which will save money. Both options will increase my net worth, but both options have their pros and cons. Paying off the debt will save 6% interest while buying the condos will produce about a 10% return. Thanks everyone!