All Forum Posts by: Johnny Self

Imporant to note:

The loft has a 3.25% interest rate, but I have no desire to live there again. And seeing that it is a 1bedroom, I'm at the max rent cap currently. HOA and management eat most of my profits...

The house has a 7.25% interest rate.

Hello Everyone,

In the next few months, I'll be in a unique position where I can potentially pay off my house. Let me provide some context to help you understand my situation.

My Goal

My ultimate goal has always been to generate passive income through rental properties. My initial goal is to earn enough passive income to cover all my bills, which amount to approximately $3,500 per month. Once I achieve this, I'll consider it a success, and any additional investments will be a bonus. I haven't set specific targets beyond this initial goal, but I may aim to increase my passive income to $5,000 or $10,000 per month in the future.

Current Properties

I currently have two properties:

• The Loft:
  • This property is rented out long-term and generates around $300 per month in passive income after HOA and management fees.
  • The loft has approximately $100,000 in equity.
• The House:
  • This is a brand-new build (2024) that I'm currently occupying through house hacking.
  • I invested $70,000 in the property, which means I have $70,000 in equity.
  • My plan is to convert this property into an Airbnb or long-term rental within the next two years.
  • Short-term rental comps suggest I can earn around $3,500-$4,000 per month, while long-term rental comps indicate I can earn around $3,000-$3,300 per month.

Seeking Advice

Given my upcoming financial situation, I'm seeking advice on the best course of action. In the next few months, I'll have:

• $260,000 in savings
• $100,000 in equity in the loft
• $355,000 outstanding on the house

Should I sell the loft, use the equity, and combine it with my savings to pay off the house? This would allow me to rent out the house for $3,300+ per month, generating significant passive income. I've heard that it's not about the number of properties you own, but rather the amount of passive income you generate.

What would you do in my situation?

Thanks so much for the advice, everyone! I agree that saving and "house hacking" again is the best route. Sadly, I'm on the waitlist and it doesn't seem to be moving at the moment. So it's just a savings and waiting game at this point.....silver living, more time = more savings....

Hey everyone,

I bought my loft in 2021 and did some renovations to it over the last 2 years. With the property value + renovations, I'm estimating my appraisal that I just ordered will put me between $75,000-$100,000 in equity. I'm currently on the waitlist to rent my place out (should be a few more months of waiting) and I have a down payment for my next place secured. I'm wanting to rent my place out because It can bring in some great cash flow. (it's in an incredible area!)

My overall goal is to have a few rental properties underneath my belt in the next few years and eventually walk away from my full-time job. I was planning on renting my loft out long-term (HOA rules), and buying a "fixer-upper" for a decent price, fix it up, and put in on Airbnb to secure my first short-term rental property next.

After that, I want to let the 2 properties generate $ on their own and use those profits to continue investing. 

Any experts out there have any opinions on this kind of a plan? What would you do if you were in my position? Could a HELOC be a smart lever to pull? Any advice would be great!