All Forum Posts by: Account Closed

I have been looking seriously at Bakersfield. Read an article saying it is the fastest growing metro in California. Population expected to exceed 1 million by 2040. Can't recall the article but it peaked my interest. I live 90 miles south so I've been thinking maybe the Midwest markets are not my next move. We could buy a value add and do a lot of the work ourselves. Still saving money like mad preparing for the day. Goal is 35K cash, keeping my eye on the prize, and getting closer every day.

I think Nick G and I responded at the exact same time. Just do what he said lol

I think the answer to this is market specific. In your market what would be cheaper on a month to month basis? I see you're in Indiana so if buying would be cheaper or the same cost as renting I would go the live in flip route. But if an apartment is considerably less expensive maybe that would be best. Seems like you need out of there ASAP so also consider the time it will take to close on a home.

I'm with David Faulkner, every penny of cashflow gets reinvested. I'm building an empire here, the Mercedes can wait lol. Really I think it comes down to the investor's personal goals. But for me I live off my 9-5, and all cashflow goes into it's own account never to be touched.

I get negativity from my sister. She's a school teacher therefore her focus has always been to get an education and a stable job. She thinks what I do is "risky" but I think her way is financial suicide. She plans on saving in a 401K and living off that money until she dies. Hope she doesn't plan on living too long! Our money is a fiat currency that is not a store of value, it's only a medium of exchange. Saying you're going to save a pile of money, and then live off of that forever is like storing water in a bucket that has a hole at the bottom. How long is that water going to last? Inflation is draining it from the bottom, and at the same time you are drinking it from the top. And this is "financial responsibility?" My generation is so screwed it's not even funny. But this is what people like my sister teach our young people to do. Step 1. Immediately get into 10's of thousands in student loan debt. Step 2. Climb the corporate ladder and give half your money to the government. Step 3. Buy a house...it's an asset right? Step 4. Save money in a 401K so that when you retire you'll have enough to eat ramen noodles while you watch daytime T.V....cause you definitely aren't going to have enough to go on that cruise to the Bahamas. Step 5. Sell your "asset" back to the bank on a reverse mortgage so that you can keep eating ramen when the 401K runs dry. Step 6. Die, leaving nothing but a bill for your kids. And my sister says I'm the one taking chances. I'll take my chances thank you very much. Sorry for the rant this thread got me fired up.

My company gives a bonus 3% if I contribute 6%. So I put in the 6% and they give me 9%. I don't plan on using it to retire. It's just icing on the cake. Maybe use it for my kid's tuition? No point in leaving money on the table.

When I bought my owner occupied duplex my agent left a gift basket on the counter as a surprise. $50 Home Depot gift card and a bottle of champagne. It was a really nice touch and I will always remember it. It could help for word of mouth referrals by other tenants. I've thought about sending my property manager a Christmas card this year. Just to show how much I appreciate him putting up with all the craziness.

What kind of work do you want to do? The reality is you are going to need income to make REI a reality. For most of us that's means a J-O-B. There's no way around it, you're going to have to get a job. My advice is to find something you like. It's that simple. What kind of job will you not dread waking up for every morning? It's going to take 10+ years to become financially free. Some people are rock stars and do it in less time. But for the majority of us it's a slow road. Do you really want to go into a field just because it pays a lot? Endure 10+ years of hating your job? So the real question is....what kind of job do you want?? Does that job require a degree? Yes or no? That should determine the answer to stay in school or not. I didn't do to school. However, that was a conscious decision. If I had gone I would have studied Economics, Finance, or Business. I have a keen interest in all those subjects. Unfortunately any job associated with those degrees involves me sitting behind a desk crunching numbers. That was not going to make me happy and I knew it. So I didn't go. I never wanted a "white collar" job. I don't necessarily think college is a bad move. I think going to college without direction is a bad move. Want to be a lawyer? Go to college. What to be an engineer? Go to college. What to be a Real Estate investor?.....Come up with a rock solid plan and work your A** off.

$10,000 a month net. I enjoy my job so I'll probably stick around at least until I can retire with flight benefits (I work for an airline). To me real estate is more about building a retirement and something to leave behind. I'll probably always have a "job" of some kind.

My worry would be the fact that you said you have no cash to work with. Meaning no equity if there was a correction in the time you lived there to act as a buffer, and negative cashflow if you have to rent it out to avoid selling at a loss. No way out if the market goes south. I don't think the market will crash in the next 5 years because of the techies flooding in from SF. However, I do think the low hanging fruit is gone. It will be hard to buy a property below market if you don't have cash to work with. Of course I'm an amateur investor, so I'm not claiming to be an expert. It's just my opinion. I will tell you I bought a duplex in Burien in December 2013 and it has almost doubled in value. It's a tough call.