All Forum Posts by: Ricky Cassidy

@Joe Villeneuve

I agree.

I have the money for the down payment, but not sure I will be able to finance the rest with me leaving my w2 and still not having 2 years of substantial income for my business.

@Damaso Bautista

Thank you, great point!

I own a 2004 pickup truck with 175000 miles. I just took it to the shop to get a repair quote. It’s about $2000 for the main repair. There are a few other smaller things that need repair as well.

I have the cash to buy a new/used truck but I know that money should and can be used in smarter ways.

The consumer side of me is trying to justify the purchase because I own and operate a small construction company “and I need something bigger for work anyway...”

The investor in me wants to use the money to create a return... letting our money work for us.

How do you guys make these difficult decisions and if you were in my shoes what would you do with 30k right now?

Quick background. I have around 110,000.00 in cash.

No debt. Emergency fund in place. But I recently went full time working for myself (I was working a w2 as I grew my business). I do not own a home, I rent for a very reasonable price. I have a feeling a large percentage of people will say I should house hack.

I’m being told by a lender, they will use the average of my business income for the last 2 years. I only claimed around 10k in 2019. After deductions, 2020 should be around 100k.

So the average of 2 years will only be around 50k considering they will not use my w2 sense I’ve recently left.

Thanks.

@Mike Lambert great points, thank you!

Are there any concerns of investing in new construction and the project not being completed due to the current situation?

This would clearly be a very risky move, but has anyone considered buying a vacation rental in a vacation based rental market such a Tulum, Mexico?

Unlike certain sub markets in the US that are very hot right now due to low inventory and high demand, I feel somewhere like Tulum may offer deals that cannot easily be found here in the states (or at least where I am in Annapolis, MD).

I’ve done some quick research and there are most definitely discounts to be found... the question is, when will tourism return to normal? Could be months, could be years...

Full Disclosure - I love Tulum and would love an excuse to own a condo there to visit.

I stumbled upon the USDA’s website today and was curious if anyone has any information regarding the auction process.

Can you bid online or do you physically have to go to the courthouse for these auctions?

The reason I like the 5 % Conventional is because you have the ability to drop the PMI once you reach 20% equity in the home. With the FHA you have PMI for the duration of the loan.

Have any others done a 5% Down Conventional Loan for there first Rental Property? (House Hack or straight up rental?)
How were your numbers? Things you would have done differently?

@Wil Reichard

Timing is everything! Nice profit regardless, on to the next one! Keep up the good work.

@Wil Reichard nice job!

Did you have to pay capital gains by selling before two years?