All Forum Posts by: Justin Phillips

With this market (appreciation and low rates) I think the 1% is outdated. It's still a nice benchmark to strive for, but increasingly hard to hit. With the lower rates/payments, you don't need quite the rent to cover expenses. Just my two cents, we've always got to adapt with the market. Best of luck in the search! AZ is growing like crazy, TN isn't far behind from what I've heard. 

@Joshua Sonico While more focused on the stock market, I love Warren Buffet's quote: "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." 
I was talking to a traditional lender buddy of mine, and he was telling me that he's advises clients that in our market if you pay $25k above asking, you'll make that back in 5 months on average due to appreciation. That definitely gave me pause. A good time to reflect and look at the implications. Where that leaves you is for you to decide...

@Khandbari Rai The only area in Temecula where you can run an STR is in the "Wine Country" which is viewed differently.

With that and other factors, wine country is very expensive.

Typically just a LTR area, but great appreciation to be had.

If you haven't heard anything in two weeks, they don't want your business. Move on to the next who will take better care of you and communicate regularly with you. 

There's a local realtor in my area that has branded himself as "The Tattooed realtor". I don't know him, but I've seen his billboards and marketing. I think it's a fun brand, and definitely allows him to stand out. 
Here's his website for inspiration, 

The Tattooed Realtor (calltattoo.com) 

It really depends on your plan both short and long term. Are you looking to buy in cash, then put a mortgage on it to pull your cash back out? If so, a Heloc would be your best option. If you're looking to purchase that in cash, and leave that cash tied up in the property long term, a cashout refi would be best. 
My goal is always to have as little trapped/lazy equity in possible. That being the case, I have a very specialized 1st position LOC tied to my property. It gives me stable 30 year access to equity, but I only pay for that access when I need it. It's tied to a zero balance sweep checking account, so all of my deposits and idle funds sit on my balance and save me interest cost. When a good investment comes up, I simply write a check from my credit line.

That said, we all have different goals and long term priorities. Based on your goals, find the options that fits best and go for it!

The problem with Cash-out ReFi's is that you're signing yourself up for 30 years of higher, interest-first payments on day 1. If you don't have an immediate need, you have new holding costs. The problem with traditional Helocs are that when the credit market tightens (when deals are typically aplenty) they're the first thing frozen or converted by banks. 
My wife and I have a very specialized 1st position LOC on our property. It's tied to a zero balance sweep checking account, where every dollar we deposit is swept directly towards our outstanding balance. So we have 24/7 stable access to our equity, and our idle dollars also work much harder for us in the meantime. It was designed from ground up to sit in 1st position, so it carries the staying power more similar to that of a conventional mortgage. It's been great for us, and the flexibility has made it a fun tool to have in our financial tool belt.

@Jackson Hartman Hi Jackson, I'll shoot you a PM!

@Daniel Fitzroy Sell the truck. Owning and driving your dream truck is something you do after you've hit your goals. When your family is set, that's when you enjoy the fruits of your labor. When your cashflow can pay for it, buy the biggest baddest truck around. 
Congrats on your new baby, my wife and I just had our second boy as well. Real Estate is a great way to build a lasting legacy and wealth for them.

The beautiful thing about FIRE is that you have the freedom to do what you want, when you want. With Brandon's family and other business ventures, he probably saw more value in his time being focused elsewhere. I'm sure he'll be back as an occasional guest though. It was a great run.