All Forum Posts by: Zack P.

@Terrance Thames haha, spoken like a true St. Louisan, talking about where you went to high school :-) 

I'll PM you. 

@Astrid Dymond I'll PM 

@Terrance Thames

Thanks for the contact.  I lived in Chesterfield for few years and my wife is from STL so investing there didn't sound too daunting even at out of state.  

Are you actively flipping in LA area?  Love connecting with any RE investors :-) 

@Matt Moylan  @Michelle Eisenberg Thanks, I'll PM you

Hi Folks!

I have rentals in South City St. Louis that I'd like to shop around insurance for.  

Do you have any recommendation for an insurance broker or an agent? 

thanks a ton!

@Julian Joseph  I'm really glad you are on this journey and you are right now on a great path, so I absolutely do not want to discourage that.  

But I do want to push into why you think it's going to take you THAT long.  If you are bringing in 70k and going to get a better 2nd job so maybe that number can get to 80-90k, then you should be able to knock this student loan out in less than 2 years.  I understand that you want to have a "life" and have some fun, but you'll still be pretty young in 2 years.  

I know I'm probably in the minority here, but reality is that your are 100% broke. Unless you have some hidden wealth set aside that I don't know about, your net-worth is probably a negative number, meaning you have ZERO wealth and you actually have no $$ to your name, not even one dollar!! Starting REI with this much debt could get you into LOTS of trouble.

Imagine, if you follow my plan, in 3 years you may be able to have 5-10 cashflowing properties (roughly, 1.5 years to knock out the debt, 1.5 years to get deals and buy properties which definitely do-able).  Whereas if you keep the student loans longer and start investing sooner, it might take you 10+ years to get to 10 properties.  

If you are up for slight delayed gratification and want to invest safely, especially at a  current market high, I believe my way will always win :-)

Just a food for thought.  

@Julian Joseph  Personally, I'm of the mindset that debt that doesn't produce income is a bad debt.  and 100K is quite of bit negative cashflow, probably paying like $1000/mo or more?  Depending on what your income level is and marital status (single with no kids?), you may be able to clear this whole thing in 2 years. 

Live with parents, get your cost of living down to like 15k a year (no housing payments, no car payments, and make 65k/year,  then the math works).  

You'll be in a better spot financially at that point to really think about REI. Lot of people get in to trouble in this business because of lack of cash reserves and cash flow and you need BOTH to succeed long term. At MINIMUM get the student loan level down to 20k-ish and refinance so that the payments more reasonable at like $300/mo or something.

I'm of the opinion that only debt that you should carry is the debt service on the property :-) 

Sounds about right with the recent interest rate increase. 

I'm currently waiting on my HELOC approval. I'll let you know what I do :-)

@Dave Foster  Thanks for clarification!

@Sarah Smith I was recently looking into doing 1031, and decided not to sell, so I'm a bit rusty on this, but I believe you also need to bring in the equivalent amount of debt (or more).  

Example: If you sold your 8-unit at $500k and you still owed $250k, then your 1031 property needs $250k or more in debt.  Check with your exchange company or CPA, but I believe this is the case.