All Forum Posts by: Travis Timmons

Do it! My take on crypto is like a lot of things - I'll never bet on it or against it. But you should definitely do it. 

Classic that we got a Columbus agent in this thread as well. First class trolling, sir. 

I don't know your market or a lot of details, but you are trying to take down a $700-800k value add deal with little to no cash. A HELOC is not cash. Even if it works, it's a bad idea as I see it.

It's a 100% financed value add deal that has ZERO margin for error. That's the real challenge with your strategy. Everything has to work. What happens if you go over your rehab budget and run out of cash? You're stuck and have leveraged your primary residence against it.

I'd rather you have healthy cash reserves and use the HELOC to buy a single family home or small multifamily that does not qualify for conventional financing and BRRRR or flip it.

 I'm not very good at practicing what I preach there. I typically end up working on maintenance projects for 8-10 hours a day if I happen to use our properties, but hypothetically, it can be done. And hopefully I get older, richer, enjoy life a little more without thinking about how much money we could be getting if the place was rented instead of us staying. So, you  know, fundamentally change my outlook and approach to life...I'll let you know when that happens.

Our mid term rentals have been better for personal use. We stay for a week between tenant turnover that already has a gap. It doesn't have the huge opportunity cost that STRs do in peak season.

"So, I did the only thing I could do to acknowledge, empathize, and help her; I filed for divorce, and later married a women who didn’t have the same security needs."

@Don Konipol so your answer is, "Divorce her if she is not on board." What?!? 

They are just piles of sticks and bricks meant to advance your financial goals. If it puts stress on your marriage, work to find common ground. Index funds and compound interest are also incredible investment vehicles that, as much as we hate to admit it, outperform a large percentage of real estate investments. And they don't have evictions, busted furnaces, or the hassle factor of property.

There is the business side - evaluating return on equity, but it's also okay to get a little emotional. The "How much do you like the property?" question matters to me...especially for STR and MTR. They are furnished and it is likely that we'll use them from time to time. If owning them makes my life better by providing a free vacation, then hold on for the long term

For me, it was ultimately a question of trust and security. My wife felt financially secure based on a track record of me being conservative and trustworthy with our finances for 10+ years. When I wanted to invest in real estate, she had no interest but was on board because of the trust and financial cushion that I banked over time.

She also had veto power. If she said, no, that was it. It's too big of a financial and time investment to make if you both are not on board.

With 40k cash, a wife that loves your current home, and 2 kids, stay put unless you can find a compelling reason to convince your wife to do another live in flip or live in a 2-4 unit house hack. Good luck with that, but I would not push it. You need those cash reserves as an emergency fund that makes your life better and less stressful.

 I'm an idiot that can't take the time to read the original post and see that there was a 1,2,3 list. That one's on me. 

@Travis Biziorek Both of you had virtually identical 1, 2, 3 lists...just felt like it kicked back a response based on similar prompts. I suppose it was coincidental.