Market fueling my fire
For the first time in my life I do NOT fear being in debt! I had tons of bad debt in the past and I fixed it with my current home in Lacey, WA. I refinanced my home and wiped out my bad debt! I owed over 22K to one of my credit cards and over 28K loan that I had on installments.
Now, for the fun part! My new mortgage sits around $4600 a month. Comps around my area would only get me to $3400 based off some analysis I’ve done for rent. I'd be covering the difference, bad, right? For me no! Because the difference I would need to pay to cover my mortgage is beneficial... More beneficial than giving it away to credit card interest. That's how I see it.
Where am I going with all this? I listen to the bigger pockets podcast! Why does that matter? Knowledge... I'll leave it at that. I have a plan to execute because I took a leap of faith! I had to start somewhere, and I was tired of the analysis paralysis! I kept myself from tons of deals because i needed to know everything. The tools on bigger pockets helped me see the bigger picture.
Now, thanks to David & Rob! I ask how can I pay this mortgage? And NOT, I must pay this mortgage. ***MINDSET***
I was moved by Zeona McIntyre & Sarah Weaver's podcast (679) MTR.. It just clicked for me like wow... Anyone can do this! You just need to tweak a few things and make sure all your systems line up. I just started their book "30 Day Stay". I now have cheat sheet to making myself successful and navigate the market with fewer errors. Will I jack something up of course! I love when people say, I made dumb decision and that fuels my fire! How can I make them eat their words? Well for me... I have a plan and I'm going to execute my plan, and fix it where it needs fixin...
I was staying up later than the usual which was like around 1130 or midnight. But I couldn't stop reading and the more information I found, the more time I spent looking up the details.
Here we go...
Move a mid-term tenant into my home. How am I looking? Furnished finder and Facebook currently.
I'm offering a discount for their first month. Then I will start grabbing the markets value for rent, which is $3400.
I'm going to be eating the difference for the mortgage because I am just starting out and that’s okay with me, I already created a budget taking these numbers into account. Once I get started, I feel like this is going to take off like a rocket ship. I know how lucrative this business can be and I am going to make it happen.
Exit plans (not in any specific order)
- Sell that house, but what does that mean? It means that I would most like have to execute a short sale and then go in bad waters with my lender.
- Reach out to investors to help cover the cost. What does that mean? I know they would want stake in the equity once the market corrects itself.
- Hold on to my home and keep eating the difference on the mortgage.
- Take out equity from my other house in Oklahoma to supplement the difference. Why? To keep my mortgage in good standing.
Things I am still working on.
Marketing… I’ve received some attention on Facebook and Furnished Finder, but nothing solid.
How are you solving this problem?
Managing the property by myself long distance. Reason being I am moving.
How do you accomplish this?
Where are the areas, I can improve my thought process?
What would you do differently in my situation?