All Forum Posts by: Peter Mckernan

@Chris McNamara

Welcome to the Site! This is a great place to build that dream and tackle the goals you set within real estate while you are working on your full time career as an engineer! To be able to dive into real estate on the side and invest on your days/nights off gives you great advantages to the long-term game of real estate.

Investing on the side gives you the ability to gather another source of income on the side of your main source that you use to provide for your family. Any investing that is methodical helps you pad your current retirement and builds out an even better source of income for when you depart from your career.

If any questions arise you can come here to the site and dig through stuff that you are looking for, and that topic should be on this site, just throw it in the search bar! 

Good luck and see you around! 

@Jaime Moreira

Welcome! That is very feasible to do, there are many people that hold a full-time position and still invest within real estate which are very effective at it too! 

Hey @Cort Green

Welcome to the site!! Orange County is for sure a nice place to live! Buying a property over the average household purchase price point in Orange County ($630,000 was average in OC as of December), it is a little harder to rent verses a home that is within that average. There is just not as many people looking at those properties as they would be other homes at a lower price point. 

It has been getting increasingly harder to find those diamonds in the rough to cash-flow as well, but depending on the deal you find you may be able to have a little cash-flow above all other expenses including the large mortgage. 

Hey @Terrell Spence

Welcome to the site! This site is great for new investors to get their feet wet, and get educated on the area they would like to invest in! It’s awesome you are jumping in and I know that you’ll find this website very useful! 

I have a couple rentals in Redlands, and I grew up out there, so that’s where I first dove in! 

@Craig Garrow

It sounds to me like you are looking to have that money for business expenses. If that is the case it is a good rule of thumb to keep a six month cushion in their for your business (formally named Retained Earnings). 

This will give you plenty of money to do most anything with your business and know that you will stay afloat in a rough patch.

@J. Martin I will be there!!! I have some friends up there that would love to go too! 

@Jeff Howard 

You should refinance, it would be advantageous for you to refinance due to the 5/1 ARM. This will lock in the rate and keep you from worrying about any changes to the rate in the future. Once it is locked int you can work on prepaying the loan, so that once you are ready to buy another house you can use the equity from that house to do so, or depending on how much you paid off, refinance again to a lower payment and rent out the house with a great positive cashflow.

Hello @Richard Noe

Welcome to the site!! It looks like you are in the right mindset to be in a very good place by retirement! I work within your area as a firefighter, and invest in the your local area. If you need anything, or need any help please let me know! 

Congratulations on the marriage! 

I attended the last one that was setup by @J. Martin at SFSU at the end of 2014. It was so good! Very informative and was well worth the trip! @Karen Margrave

Hello @Adam Shindler

I hope all is well! Glad you made it to the site! As with any investing in life a person should know a bit about the actual investment prior to moving their money into that specific investment. With stocks, 401K, and IRA the investment is very passive with really no thoughts at all after the research is done and the money is placed.

The house rental, apartment rental, or landlord investment position is completely different. As a landlord without a property management company that person that owns the rental will be the point of contact for anything that comes up with that property. As a landlord with a property management company the person owning the property is still the point of contact, which can be getting called about once every few months, or twice a month dependent on the circumstances of the tenants, the area the property is in and the condition of the property when bought. Thus the buy and hold method still has aspects of non-passive characteristic.