All Forum Posts by: Randy Bloch

@Wil Reichard

I think you need to account for the closing cost 6% (9k) and the tax(5k) in profit calculation? Or

Am I missing something?

@Tim Swierczek

Thanks for correcting me....I thought there was something around this...but am obviously not a mortgage broker :(

I would check out the following:

1) can u take a loan from you 401k

2) check with mortgage broker and see what you can qualify for

3) put together a budget and see how much u could save per month if u had to.

4) see if based on how much you qualify for there are duplexes in neighborhood u want to live.

Based on this information u can make a educated decision.  One possibility is tell them u need 3-4 months and then save up 10k and take the 10k from line of credit and go for it with 20k down payment. Would be good to make sure u have some CC credit available and n case of an emergency.  Also mortgage broker will need to know if u plan to access you line of credit, this will impact credit score and your the amount you qualify for.

I agree with Bill's line of thinking...figure out how much cash you can Save per month. Then you can assess how quickly you can pay off the additional debt you would take on for down payment. Your housing expense will likely go down if house hack a duplex. You probably won't qualify for a mortgage for over 300k, given salary and your consumer debt, plus you won't be able use the Rental income to help qualify since this is your first REI.

With rates so low would be nice avoid moving again and just go for it.  Do you have any family members that would loan u 5-10k?  Also, consider how safe your current jobs are, we might be heading towards a recession so not a good idea to take on more debt if you don’t feel your current jobs/pay is secure.

I think seller financing will be tough to find in this market....where are u planning to look? Prices on duplexes are pretty expensive in most of the metro.  How long would it takes for you to repay the 10k if u were to use that? Are you looking for something that you can rehab? 

Credit card debt? How long will take u to punitive off otherwise,”?

Try helping her see what is in it for her...the better life it will lead to for your family. Maybe the SFH u move to after you house hack has something she wants...bigger yard, better location or better schools. If u explain that whatever that is will be difficult to obtain on current path and lay out an alternative path that gets u to that, she might start to see the world a bit differently.

Best of luck!

 This was great advice and using Mint is also very wise.  I can honestly say that using Mint has changed my path towards financial independence as it helps me monitor both my expenses and net worth.  It helps me make conscious decisions about my spending.

@Jennifer White

Don’t be afraid to pay someone to do stuff for you...I come from a family of DIY. Which is fine, but if you have a full time job or want scale quickly you need to hires other to do stuff for you. I probably would already be retired If I would have learned this sooner :)

Also, I know GFs and Wife’s don’t like the househack idea and I don’t recommend forcing your family to live in shady neighborhood if that is only options for house hacks...but if can paint a picture to your GF on how this will launchpad for financial independence she might change her mind.  

If you can save enough for down payment for house hack, move in, rent your current SFH and after a year or two buy new SFH. suddenly, after 2-3 yr you have two rental and SFH under ownership. You are paying down principal, CF and tax benefits and appreciation all working in your favor. That would be a pretty good position to be at say 26-27. You play your cards right you could be on a path to financial independence at 35-40yo....I think you GF might sacrifice 2yr of house hack for future like that?

Who am i to know what your GF might think...I am single :) but very close to financial independence:)