All Forum Posts by: Michael P.

Based on the pics it appears as though everyone on your actual street is residential.

Have you made 100% that people(Commerical Access) can access your property from the residential street.  That is something i'd be making damn certain of.

@Wayne Yates Yeah I figured you had a higher interest rate.  

I will stick with my previous advice with this caveat.  You say you are making 5k a month.  At a minimum you should be able to save around 2k.  Wait about 1 month, maybe do some side work as well then pay cash for the trailer.  Financing 5k?  Who loans on that?  Don't bother just pay cash.  

Yes, now you are pretty much flat broke but so what.  You are now capable of saving 3k a month.  Wait one month put 3k into the bank then start just blasting away at the car.  9% is just too much to be paying in interest.  

Is there a reason why you don't just live in your parents house that is on the property?  You're already an hour away from your friends why not just shack up there and save even more?

@Wayne Yates I think you have your mind made up, buy the RV and take the plunge.  You're so young doing something like this is easy for someone your age.  The hour drive will eventually catch up to you, but you have that drive regardless so it's a moot point.  

Your peer group is currently in crazy debt, so you're way ahead of the game.  You have no idea how much 100k in cash will do for your future, so make the sacrifice and start shacking up in that RV and hoarding piles of cash.  It sounds like you can realistically save about 3k a month.  I would take the cash and throw it at the car payment, esp if you have a higher interest rate, which if you can't get approved for a house it sounds like you might.  

Pay cash for the RV, even if you get sick of it in a few months you can sell it and you will still come out ahead of paying 1.2k a month in rent.  So I see nothing to lose here.

After 3-4 months you will have your car and RV free and clear.  They are both depreciating assets which sucks but still you are debt free.  At this point you will start saving 3k a month and have a net worth of about 20k, not great but not bad either.  In two years you will have right around 90-100k if you have been savvy with your spending.  This will take a lot of sacrifice, or after a year you should be nearing 50k, which is probably enough for a down payment on a house in a college town.

It sounds like you are mentally on a good path.  I know the feeling of not knowing where your next pay check might come from.  That is a good way to think, however don't dwell on it either.  You're young and ambitious you will figure something out even if **** hits the fan.

One last piece of advice.  If **** does hit the fan, don't rest on your laurels and blow through your saved up cash, this will come back to haunt you.  Get out there and make sure you are at least breaking even while the economy is in shambles, that cash is a beautiful thing and opens many doors.

Goodluck...

Sell your truck.  You don't need it, it will just depreciate, and you need that 22k.

Don't apply it to your personal mortgage. You need cash. You don't want to worry about getting a HELOC, why bother with that annoyance if you can just use cash. I'd keep stock piling your huge commission checks and apply them to future down payments on additional rental properties.

As others have mentioned the example you provided is pretty lousy.  Keep looking and studying and don't pull the trigger until you are comfortable, educated, and find a much better deal.

Goodluck...

Go visit a small local bank in your town.  They should be able to help you get some 20 year mortgages on a few of the houses in order to free up some cash.  

I highly recommend the move to commercial. I love building where your tenants are small companies such as small time local businesses, think blue collar trades such as plumbers, electricians, pest control, lawn mowing companies, etc. These buildings consist of an office space with a larger warehouse. The reason I love these buildings and tenants is because you basically have a shell. So they really can't screw much up and as far as repairs go they are minor. So you typically have pretty good NNN tenants in place and you rarely get calls.

These buildings are usually about 6k sqft and have 3 units, so unless a tenant wants to combine space you will have 3 tenants.

Goodluck...

@Nathan Follett I build spec homes in Dallas.  I recommend you clicking on the youtube link in my signature and follow me on youtube.  I discuss building spec houses there.  

You might want to consider partnering with a small builder in the area or even hiring a GC(Builder) to handle all the things related to building the house.  Even if you break even on the first house you will learn and then know the process so you can act as the GC on the next build(s).

Goodluck...

My travel and eating out budget is already absurd.  I would just continue on that path with the 30k and go wild on First class all the way.  

The 900 lap dance response is pretty hilarious @Account Closed although you could probably get a group buy and negotiate a better deal...

I would never consider % my reasoning to purchase a rental.  So many other factors need to be taken into account.  For example you could purchase a rental in a war zone and get 20% return but you would be dealing with theft, having to bring a gun, and subpar renters.  Is that really worth 20%?  For me, no freaking way.

I would rather have a house with great bones in a great area and my return is less.  I know many probably don't factor in appreciation but you should.  A house of this nature over time will appreciate more and have less headaches.

Goodluck...

@Isabella Romalatti that is just going to be a scam.  Save your $1200 bucks and stay home.  Your Gut is already cautioning you, listen to it.

Goodluck...