All Forum Posts by: Michael Sjodin

@Zachary Giles If the debt is fixed and below 7% then it typically makes more sense to invest. That bring said Auto debt is pointless and terrible since it is on a depreciating asset. Sell your high priced cars, get a cheap commuter car in cash, aggresively pay down any remaining auto loan balance and then invest in my opinion. If you are currently renting you could also buy a primary residence as an investment (meaning it cashflows upon purchase if you were to rent it out). Then after you pay off your auto loan and ensure your student loan debt is at a low fixed rate, you can begin investing in additional RE properties.

@Jason C.

Since people often roll their old loan into the new one when they trade in their car every few years it is basically a reverse debt snowball. The people who get those loans probably have a 20% chance of ever paying it off.

@Luke Ski True. You know everything is structured poorly when people are getting 72 month car loans.

@Tyler Hayes Welcome. I'm looking in SD too. I have a excell spreadsheet I use for deal analysis (similar to the bp calc, but with some differences). I could send it to you. I also have 2 mortgage brokers to recommend and a couple RE agents too. Check out the monthly Beers and Deals meetup at Stone Brewery. There is a lot of good people that go to it including a guest that appeared on one of BP's podcasts.

@Michael Ndjondo makadi if your partner is cool with it, do option 1. I think there is a nice benefit to beginners to have their investment properties close to them for the early stages. Not to mention you can get a primary residence loan at a lower interest rate. I agree that option 2 is too risky because of HOAs and changing CA policy volatility against STR and the like. Option 3 can probably work too, just make sure you pay a lot of attention to creating a good team and comprehensive property vetting system. Option 3 can work out well in the long term as well because it is very scalable.

@Nicholas Morgan assuming you have a full time job you would need to determine what your taxable income will be at the end of the year and work that into your calculations. For example, I pay a little over 15k in taxes annually (California taxes) and my house will bring me ~1k/month in tax benefits from interest payment and other factors (I bought with a 0% down VA so my interest payment is high). Therefore I will keep about 12k more wealth at the end of the year from owning a home because it goes into the expenses of an asset instead of to the gov. Also, I was referring to your monthly principal paydown when I mentioned equity. I get a pretty solid equity paydown from my house too. I just want to make sure you aren't ignoring the other wealth builders when you run your numbers.

@Nicholas Morgan what are your equity gains/ tax benefits? Depending on your risk tolerance it can still work. Also, at that small of a monthly cashflow amount is your margin of error big enough?

@Benjamin Templeton not a bad place to buy. I work in Point Loma as well so I feel your pain on the commute.

@Benjamin Templeton Welcome. Check out the beers and deals meetup in SD once a month at the stone brewery. It has a pretty good crowd that attends it. Where in Oceanside did you buy if you don't mind? I bought in Vista a few months ago.

@Brian Mihaljevich if you are worried about the ADU airbnb rules then you could always live in the ADU whenever you get a guest for a short period of time. That could give you some leeway. I also, have heard people mention that you can convert an ADU into an additional bedroom by taking some extra steps.