All Forum Posts by: Josiah Charland

A tenant with guns really shouldn't be an issue. The quality of the person is where you should be making your judgements. The the guy is military so obviously the government has trained him on how to use them. Guns aren't bad just the person behind them if they are used improperly.

laminate flooring all the way. easy to install easy to upkeep. when it needs to be replaced doesn't take much effort.

this really seems like a situation you should consider revising your lease agreement with your PM and your tenant. If you don't have youself covered with your lease then you need to fix that before it gets more out of hand. 

The house is in downtown redding so I know it is connected to the sewer system and not a septic. Not sure what type of sewer system I have. How would I find that out?  I cant see anything coming to the surface I can really smell anything ether. Also anyone know what type of issue my neneghbor could make out of this? I feel way out of my element here and don't want to spend money on a wild goose chase looking for a leak somwear spending money that I don't have lol

I purchased my current residence as a cash offer about a year and half ago. It was a fixer that I moved into. Today my neighbor came by while it was raining and told me that he thinks something is wrong with my sewage and that it's making his backyard smell. He beleaves that the people that owned the house before didn't do a good job and wants me to look into it. I didn't really smell anything myself and not sure what to do in this situation. Am I required to do anything? I live in redding ca and any help would very much appreciated. 

Originally posted by @Michael Evans:

Your talking about Financial Independence, which I define as "Having enough monthly cashflow to afford to live the way you want without having to work."  Here is the mathematical equation:

Assets x ROI = Cashflow > Expense Budget

Here are the steps:

• Determine you annual Expense Budget based on how you want to live.
  • Example: $75K/year
• Determine your Return on Investment based on your Risk Tolerance.
  • Your Risk Tolerance is based on how wiling are you to risk losing it all when it comes to your incoming producing properties to where you would have to go back to work.
  • Use a scale of 1-100, 1 = cash in mattress and 100 = I'm gambling the rent money a the craps table.
  • Take your Risk Tolerance # and divide by 5 to calculate your ROI.
    • Example: Risk Tolerance = 50, ROI = 50/5 = 10%
• Income Producing Assets = Expense Budget/ROI
  • Example: $75K/10% = $750K in income producing assets
• For real estate, Income Producing Assets = Property Equity, not the market value of the property. So if you have a $200K property with $20K in equity producing $2K net cashflow/year, then your Income Producing Asset is $20K with an ROI of 10%. By the same token, your $200K property could have $50K in equity and produce $5K net cashflow/year. Now you have $50K in Income Producing Assets with an ROI of 10%.

What I've given you is the basics that you need to calculate your Financial Independence Number (It's a dollar amount): Income Producing Assets = Annual Expense Budget/ROI. This is where I recommend that you start and develop an Asset Accumulation Plan (AAP) to reach your Financial Independence Number.

You can connect with me and I can provide more information/guidance to you if want.

God Bless You!

Thank you I will plug some numbers into that formula and see what happens. Independence from my job is the first goal im trying to accomplish with REI. Me and my wife both work so we are in the process of making our budget living on here income and saving everything i make that way when I quit to start REI full time me are already living below our means.

Originally posted by @Andrea Flores:

You can't buy an investment property with and FHA loan.

you are able to purchase up to a 4plex with FHA. You just have to live in one of the units for a year. easy way to get into a first property.

Alright so let me give everyone a little background. I'm 28 years old, I have been working for a large retail company for almost 7 years now. I got married 2 years ago. Me and my wife were able to purchase a property with 2 homes on it. One of them we worked on for about 3 months and moved into it. The other house had major structural fire damage that I am in the process as we speak to get permits to fix. The house was a cash offer me and my wife payed 14k and my father in law spoted us another 14k that we are paying back slowly but there is no rush. I just qualified for a FHA loan of 200k and we are looking for a multifamily. Here's where I need the advice. Me and my wife want to Completly live off of the cash flow from the properties. So far are plan is to move to a place were we will minimally cash flow then rent our current residence. She works a good job that pays good so we were talking about me quiting my job that way I can full time invest and work on the property and she will work the job untell we are making enough for her to quit. What I want to know is what is the best route to quiting your job and making enough to live on. We have no rent, no car payments or other big debts besides the father in law. Anything helpful would be appreciated!