All Forum Posts by: Vic Vega

Hey Everyone!

So I'm new to real estate and have a question. I'm looking to flip but am certainly open to buy and hold/rent. To me it seems that when looking at a foreclosure that it makes sense to pay a little more if the plan is to buy and hold instead of flip.

Just throwing numbers out here. For example if a house after repair value is 200k. Knowing the rehab cost lets say I would need to get the home at 110k to make sense to flip it. However, if I want to buy and hold it may make sense to pay up to 135k.

Would you agree to this approach? If so how much higher would it make sense to pay if you're going to buy and hold.

Hey thanks @Kevin Hunter. Just wondering where you got 75k?

@Josh C. thank you for the input. I see where you're coming as far as how paying off the truck would save me on having to the pay the interest and removing a liability. However, from my angle I see it as losing $15,000 (amount owed on truck) of investable cash at the ready. I would think it to be better if I just continued to pay the affordable monthly car note ($360) and keep my cash for a future investments, no? Your thoughts?

Ahhh I see what you mean now. Good point! So considering the two debts I have, auto & home, it would make far more sense to overpay my auto loan if I do overpay either at all. Thanks so much guys!

@Steve Vaughan thank you for the feedback!  I am a little confused though by the first paragraph in your response. Particularly when you said "I would rather earn my mortgage interest rate than basically nothing." It seems like you were suggesting to take the extra money I have left over that was set aside for the mortgage, and do something with it to at least earn a return equal to my mortgage rate (4.375%)?

Could you clarify a bit? Thanks again!

Hey @Allen Fletcher thanks for the input! I currently have a little over 100k in cash reserves and the only debt I have is on my home and truck. So I'm good on debt management and rainy day funds. Not sure if this changes your opinion on my situation or not?

Hey Everyone!

So I'm new to investing but this question is actually about my current live in home I've occupied for about 4yrs now. My question is for someone in my situation, to overpay mortgage or save the money that would have been to used overpay on the principal?

Little background. I do plan to put my home on the market to sell anytime in the next 6 months - 2 year (depending on opportunities that present themselves). I currently owe 115k and the home is valued 200-210k. My mortgage is $918 and for several months now I've been setting aside $1,100 a month to pay the mortgage then save the remaining $182.

So would it be smarter to continue saving that $182 a month for future investment opportunities or use it to overpay on the principal? To me I feel it's not worth it to overpay considering I do not plan to be there for the longterm. 

Thanks!!