All Forum Posts by: Nathan Doherty

@Chris Stroup

Thanks for the response! That’s a solid idea!

@Jody Sperling funny you say that. My father in law wrote a book on life insurance. Maybe I should talk to him about it. I’ve been so dry on real estate that I haven’t thought about other options like that.

Hello everyone,

I'm looking to hear some ideas as to what you guys and girls would do in my shoes. Next week I will be selling my first "investment property". It has been my primary residence for 2 years and I will walk away from closing with about 40k dollars thanks to the sweat equity I was able to add and the great purchase price I had. Now I am trying to figure out how I want to invest this cash. In about 6 weeks I am moving across the country and leaving my stable military job to attend college for free using the GI Bill. I will receive a housing allowance while I'm in school, and my wife will work full time. I will also work part time. Altogether our monthly income will be a little less than what it is now but we will still be able to cover the bills and put a few hundred bucks away per month at a minimum. The market we are moving to is a little bit on the more expensive side of things. Ideally I would like to buy a small multi family using my VA loan and house hack. But that will probably have to wait until I have a steady job because I don't believe banks will consider my housing allowance as income. I have considered maybe trying to find some properties to flip as I can bring the money for the project and manage it while a partner can buy the property. I know this is long but I just wanted to basically explain that I'm leaving a stable income source for a not so stable income source but I still want to invest my money so I'm not wasting its potential sitting in a savings account. Thanks In advance and please ask questions because I'm sure I didn't explain it all!

@Nathan Doherty I meant it hasn’t had any big ups or downs in the home values

@Ryan Lane

I went with 250 to be conservative. That’s the net profit after putting aside about 25 percent of the rent for expenses like that. But yes I agree with you!

@John Warren

I like the 10 year rule of thumb you use. I have found myself thinking about how that cash flow isn’t going to really do much for me compared to 30k. The only reason I have heavily considered renting is the fact that the mortgage will be getting paid down. But with the loan being so recent it will still be a few years before I see any real dent in the principal and historically this area has really made big ups or downs in hone value so I wouldn’t really expect crazy appreciation.

Hi everyone!

I’m looking to get some conversation going and take some advice from the BP community.

In 2018 I bought my first property using an FHA 203k loan. I've been living in that property since then but towards the end of this year I will be leaving the military and moving across the country to change careers. My wife and I are torn between selling and renting.

If we sell, we should make anywhere from 20-30k after closing costs and we will be exempt from capital gains tax. Making that money sounds pretty tempting when I think about having it in the bank as I transition careers. On the other hand, if we were to rent we could cash flow about 250/mo after accounting for expenses and vacancy. I would hope to find tenants that are military in hopes that they wild take decent care of the place but we all know any tenant can be good or bad. If I were to rent it out I would possible try and get a 100% LTV HELOC so that I still have access to that equity incase I want to use it for future investments or just emergency funds.

I can’t wait to hear some opinions! Ask any questions you may have! Thanks!

Can anyone provide me with some rough estimates on what new construction on a lot I already own would cost? I’ve tried to research and I don’t feel solid about the info I’ve gathered. What are some factors to consider when going this route? Thanks!

@Chris Levarek

WOW! Thanks for all of that! I knew I was on the right track but I didn't realize you could get a HELOC for 100 percent LTV and the tax break is just another bonus! I'll have to talk with a lender about the HELOC because that extra cash would really open some more doors for me.

@Jaleel Phillips I don’t believe those are reliable comps. I’m gonna offer 150 and see what they say! Thanks for the input!