All Forum Posts by: Zach Rubin

If you have a good product at the right price, it will sell. Inventory for good homes is still tight. From a renting perspective, STR/MTRS in cary generally have good rental fundamentals but its of course case-by-case and property-by-property.

Looking at your property, I'd say that the zillow/redfin estimate for both ARV and rent are directionally accurate. Won't have much, if any, capital gain to shelter so don't let the 2 year market be a big driver for you in your current situation.

Thanks Pat,

I wouldn't call it a driver however its a small positive to have in a decision to move away from our current situation.

0 Votes

Raleigh, North Carolina

Quote from @Stephanie Walker:

Why would you want to sell and go back to renting? It sounds like maybe it was a bad buy from the start? What's the motivation here?

Cary is a very popular area, especially for relocating families so selling in the Spring/Summer lines up well for timing. I'm happy to help talk through it and see if it makes sense for you and your goals.

Cary is a very nice and popular area.

I’d would say it was a bad buy for us at the start. Which is fine you live and you learn. We want to go back to renting for a bit because owning a home at this time in our lives doesn’t make sense. We tried it and realized it doesn’t fit with what we want. I know people will debate this but our goals have changed in the last year. Owning a home is the last thing now. Renting would allow us to free up headaches and cash.

0 Votes

Raleigh, North Carolina

Currently thinking of selling my personal residence, almost 2 years in April so I can take advantage of not having to pay any capital gains tax as well has been turning into a headache trying to renovate the house itself.

Have done a decent amount of work however not looking forward to putting anymore sweet equity or $$$ now for future renos. Home is in a pretty good location, (Next to the old Cary Town Center where Epic Games was suppose to build their new HQ) and would like to get back to renting for a bit.

How's the housing market in the Raleigh NC area? I'm located in Cary, south of Raleigh.

Wouldn't want to sit on this thing if the market itself is slowing down.

Couldn't rent it due high costs of mortgage itself and rents are two low to even break even.

Thanks in advance for any info!

0 Votes

Raleigh, North Carolina

Quote from @Troy P.:

If I was in your situation, it would depend on my goals. If your goal is to have 1 or 2 rentals as supplemental income as you age, then I agree paying off all debt sounds great. If your goal is to build a real estate portfolio and turn this more into a legitimate business, then leverage and cash flow are your friends. Do not put a single penny more than you have to into principal pay down and instead use that cash to acquire a property that will return 10+% of that cash annually as well as give you another appreciating asset, as well as (and this is my favorite) a plethora of tax benefits.

I spent a lot of time reading "401k vs REI" on other Internet forums, and it all comes down to how much effort do you want to give. If you want a relatively low stress life, retire comfortably, and leave minimal assets to your friends and family which will be taxed at normal income rates, then by all means keep maxing out that retirement plan. Most of us on here want more...

I definitely want to build a portfolio and the 401k will not do it. Granted my company matches to a certain percentage so I'll go as high as they match but put the other $$ in other investments.

1 Vote

Raleigh, North Carolina

Quote from @Bill Crow:

@Zach Rubin

I’m not sure why you believe the interest rate on investment property 2 years from now will be as good or better than the rate you have on a primary residence today. Am I reading your post correctly?

Secondly, at your stage in life, it may also depend on whether you are counting the income from this rental in your household operating income. If not, you may be better served NOT to prepay for the reasons others have mentioned - the renter pays your mortgage, so the cost of funds is not yours to bear, and the cash in your hand can be deployed where it does you the most good.

I hated the idea of being in debt and it kept me from starting my investment real estate journey for a long time. Now that I’ve embraced that the debt is part of the overhead of having the business, it is much less of a pain point.

Best of luck with whatever you decide.

The only debt I have is a truck payment and a credit card balance. Other than that, this property would be a "good" debt. I just wanted to see whether or not making extra payments would help with the principle of the mortgage even with high interest is all. I haven't gotten my rate yet however I presume it'll be in the %6 range.

0 Votes

Raleigh, North Carolina

Quote from @V.G Jason:

Quote from @Zach Rubin:

Very much appreciate it guys. We are living in the Cary, North Carolina area so it’s growing. We will be debt free this April. My priorities were set since last year with how the economy was and where it is heading so I had started implementing what my strategy was before. We've rented for the past 3 years with it being around $1600 for rent and if my calculations are correct, the mortgage will be around $2200 -$2400. It’s not like we can’t afford it but Ik it was time after debt free to truly start strategizing my real estate investments.

Are you worried about the math of it, the peace of it, or the behavioral aspect of it?

If it's strictly math, and you can be disciplined to carry cash against your debt notes almost to a 1:1 tier, then sure try it. If you can't, then behavior wise you're not capable of it clearly.

Don't get fooled with people trading interest rates against others, oh my mortgage is 3.5% but my savings is giving me 4.5%. Anyone that has that justification, ask them to show you the last 10 years of their ability to manage payments and their exercises of financial behavior during times of liquidity. You'll realize they'll always have some excuse to justify their irresponsible actions. Lack of accountability.

That location is an underrated primo, primo spot.

If you intend to have a family, not my business, I'd keep that as my primary and have my kids go to school in that area. Pay it off as fast as I can for peace of mind, then worry about investments. I'm not saying this as someone preaching, like one's who "trade" IR rates, I've done this myself and the lack of debt, peace of mind changes your day to day lifestyle.

I wouldn't use the word worried but I see what your getting at. Im not comparing rates like you mentioned and im not even looking into having any actually PRIMARY home for some years forward. Buying and moving into single family or multifamily homes/Househacking is what I plan on doing over and over again unless other opportunities come up. Plus when I mention about being debt free, im really only talking about a truck payment and a credit card amount. And i can even say that my age at 27 is a success compared to many.

0 Votes

Raleigh, North Carolina

Quote from @Joshua Matthews:

Quote from @Zach Rubin:

Very much appreciate it guys. We are living in the Cary, North Carolina area so it’s growing. We will be debt free this April. My priorities were set since last year with how the economy was and where it is heading so I had started implementing what my strategy was before. We've rented for the past 3 years with it being around $1600 for rent and if my calculations are correct, the mortgage will be around $2200 -$2400. It’s not like we can’t afford it but Ik it was time after debt free to truly start strategizing my real estate investments.

A regular Dave Ramsey out here. Proud of you man. It's a good question and worth talking through in these forums. A ton of great input on this question. For my wife and I we made the emotional decision to not carry any debt over our heads (literally). We paid off our personal residence. But use leverage rentals. Indianapolis is too good of a market to not take advantage. That said, we start safe and will gradually extend leverage as our personal portfolio grows...again, I know the math works and help investors all day long; but at the end of the day it's YOM (your own money) and therefore must be measured against your or risk-meter, to use Ramsey's words.

Thanks Josh, I thank you plenty. Why wife and I are in our late and early 20s and make good W2 money for our age. I agree with uncle Ramsey on something’s but others I don’t which I know is OK like anything else and will strategies our future to what fits our needs the best.I began to stop listening to others who weren’t on this side of the mind set in early 2022 and boy has it made me open these eyes. The feedback is incredible by everyone 👍🏻

0 Votes

Raleigh, North Carolina

1 Vote

Raleigh, North Carolina

All Forum Posts by: Zach Rubin

Zach Rubin has started 4 posts and replied 17 times.

Post: Looking to Sell Personal Home

Post: Looking to Sell Personal Home

Post: Looking to Sell Personal Home

Post: Looking to Sell Personal Home

Post: Looking to Sell Personal Home

Post: Extra Payment on first property or waste of time?

Post: Extra Payment on first property or waste of time?

Post: Extra Payment on first property or waste of time?

Post: Extra Payment on first property or waste of time?

Post: Extra Payment on first property or waste of time?