This stuff is very hard for me (Investment Stories?)

Brookhaven, MS · Member since 2016 · 38 posts · 7 votes

Im 25, 35k a year. 60,000 (25k car 35k student loans) in debt. I work for my capital. Parents don't help me live. My main purpose into educating myself about finances is to build wealth. I want to be a very wealthy person. Now, your objection to the previous statement should not be jealousy and is not needed. I know my worth and my intent. Don't reply to this topic denouncing my dream of wealth. My goal is to save 10k. I am already half way there but I don't know what to do when I get it. Some say the multifamily strategy, the buy land and put trailers on it strategy, to don't invest in mutual funds(rich dad poor dad). I stay in brookhaven, ms but i do plan on moving I'm just not sure where (I'm open with no kids and not married) There are many success stories and me reading rich dad poor dad has me interested in real estate. I have a degree in advertising & marketing but i don't like sales even though I sold 5 cars in my first month with no experience. Sales aren't my thing even though my dad done it for 30+ years. My problem is being overwhelmed with all these investing strategies people think is best to build great wealth. I don't know where to start. the information is so overwhelming I FEAR that I won't get started because I don't know where to start. I do want to own a jet one day (don't discredit my dream lol) My credit is ok, thus buying a 2015 impala with 2.4% interest rate. I just need your opinion or advice on HOW TO GET STARTED? Also, your first investment stories will give me life. PLEASE HELP!!!

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Jeff Barber

Investor · Jonesboro, AR · Member since 2016 · 11 posts · 53 votes

10y

Honestly, sell the car and save that payment if you want to hurry on your first investment. Consider a single family house or duplex and live in one side and rent the other. Be your own property manager for the first several years to learn the basics. Devour landlording books, websites, and find mentors in your area. You are the only thing holding you back. The car is a pride thing. Sacrifice now and it will pay off large, later. Good luck to you!

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Aaron Brown
Rental Property Investor · Independence, MO · Member since 2013 · 92 posts · 37 votes
10y
yeah man, sounds to me like you needed a good local realtor/agent to show you houses, give advice on properties/locations, and answer your property specific questions.
The websites/apps I mentioned anyone can look at, but with Fannie Mae, HUD, and MLS listings, you're really going to need an agent to set up showings and make offers for you.
Check out this house which is about an hour and half from you. I just found it on Fannie Mae website. Looks like it needs a roof and a little work, but could be good deal! Right now it is owner occupied bidding ( indicated by the first look icon), but afterwards if it isn't sold then investors can bid on it.
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Aaron Brown
Rental Property Investor · Independence, MO · Member since 2013 · 92 posts · 37 votes
10y
this one looks very interesting too and it's about an hour north of you in Jackson
Of course, I know nothing about these areas and your market, so you'll have to ask a realtor for insight and do your own due diligence. Just thought it would be interesting to throw out those Fannie Mae properties above. Good luck!
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Antonio Evans
OP
Brookhaven, MS · Member since 2016 · 38 posts · 7 votes
10y
Originally posted by @Aaron Brown:
yeah man, sounds to me like you needed a good local realtor/agent to show you houses, give advice on properties/locations, and answer your property specific questions.
The websites/apps I mentioned anyone can look at, but with Fannie Mae, HUD, and MLS listings, you're really going to need an agent to set up showings and make offers for you.
Check out this house which is about an hour and half from you. I just found it on Fannie Mae website. Looks like it needs a roof and a little work, but could be good deal! Right now it is owner occupied bidding ( indicated by the first look icon), but afterwards if it isn't sold then investors can bid on it.

Yeah I kinda like it! I don't know how to evaluate deals though lol But I do know its all about the numbers
0 Reply
Susan Maneck
Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
10y
Antonio,
I'm a JSU professor and when I first read your post I was going to say something about that car as well. If you want to get rich learn to live poor. I live in a home in South Jackson for which I paid 30K. I think the best place for someone like you to start would be on a foreclosed multi-family property with no more than four units. Then buy it with an FHA loan and live in one of the unit. You could probably find one here in Jackson for 45K.
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Susan Maneck
Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
10y
Here is an important question, Antonio. How handy are you? How much of the work rehabbing house could you do yourself? Mind you I hire people to do all my rehabbing but I'm a sixty year old lady with more money to play with than what you have. By the way you can buy houses in south Jackson in the 30-35K range without a leaky roof. The neighborhood is slightly better than the one where I own most of my property, but I'd be really reluctant to buy a foreclosed house with a leaky roof. Mold grows way too fast in Mississippi, and those houses are often vacant for years before they get to the market.
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Antonio Evans
OP
Brookhaven, MS · Member since 2016 · 38 posts · 7 votes
10y
Originally posted by @Susan Maneck:

Antonio,
I'm a JSU professor and when I first read your post I was going to say something about that car as well. If you want to get rich learn to live poor. I live in a home in South Jackson for which I paid 30K. I think the best place for someone like you to start would be on a foreclosed multi-family property with no more than four units. Then buy it with an FHA loan and live in one of the unit. You could probably find one here in Jackson for 45K.
Wow. Its shocking that someone from my area is on the site. I lived in South Jackson off Raymond Rd but I moved last year. Yes, that house hacking strategy is something i've been looking into a lot lately but my concerns where not being there most of the time because I travel to earn an income. Im also not good at renovating myself BUT IM WILLING TO LEARN. I've done painting and carpenter work with my uncle. Yeah I know the car was a bad purchase whenever I'm crunching in numbers now. My annual income is flexible too. Its not always low at 40k. It goes up and down.
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Antonio Evans
OP
Brookhaven, MS · Member since 2016 · 38 posts · 7 votes
10y
Originally posted by @Susan Maneck:

Here is an important question, Antonio. How handy are you? How much of the work rehabbing house could you do yourself? Mind you I hire people to do all my rehabbing but I'm a sixty year old lady with more money to play with than what you have. By the way you can buy houses in south Jackson in the 30-35K range without a leaky roof. The neighborhood is slightly better than the one where I own most of my property, but I'd be really reluctant to buy a foreclosed house with a leaky roof. Mold grows way too fast in Mississippi, and those houses are often vacant for years before they get to the market.
Well I would say I'm very handy. Im just ignorant of the fact about home materials and what need to be fixed in a home and estimating the cost AND how to do it. Lol I need like a hands on training done. Im a very quick learner and Im willing to do the work myself.
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Susan Maneck
Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
10y

Well I would say I'm very handy. Im just ignorant of the fact about home materials and what need to be fixed in a home and estimating the cost AND how to do it. Lol I need like a hands on training done. Im a very quick learner and Im willing to do the work myself.
A lot of things you have to learn by doing. I can hook you up with a couple I work with. She is a part time real estate broker who doesn't mind dealing with those cheap HUD and Fannie Mae Properties most realtors can't be bothered with. I use her husband for a lot of my repairs and rehabbing. Don't let the fact that you are on the road a lot stop you. If you live in one units you buy you'll be there more often than most landlords!
BTW, I live in the Oak Forest Neighborhood south of McDowell.
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Antonio Evans
OP
Brookhaven, MS · Member since 2016 · 38 posts · 7 votes
10y
Originally posted by @Susan Maneck:

Well I would say I'm very handy. Im just ignorant of the fact about home materials and what need to be fixed in a home and estimating the cost AND how to do it. Lol I need like a hands on training done. Im a very quick learner and Im willing to do the work myself.
A lot of things you have to learn by doing. I can hook you up with a couple I work with. She is a part time real estate broker who doesn't mind dealing with those cheap HUD and Fannie Mae Properties most realtors can't be bothered with. I use her husband for a lot of my repairs and rehabbing. Don't let the fact that you are on the road a lot stop you. If you live in one units you buy you'll be there more often than most landlords!
BTW, I live in the Oak Forest Neighborhood south of McDowell.
Thank You. Yes, I would love the connection for that. Yes I did know how I was going to be able to invest in homes and earn a living on the road at the same time. In which, I plan on stopping in 5 years
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Susan Maneck
Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
10y

Thank You. Yes, I would love the connection for that. Yes I did know how I was going to be able to invest in homes and earn a living on the road at the same time. In which, I plan on stopping in 5 years
Email me privately and I'll get you my contact information.
0 Reply
Andrey Y.
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
10y
Originally posted by @Antonio Evans:

Im 25, 35k a year. 60,000 (25k car 35k student loans) in debt. I work for my capital. Parents don't help me live. My main purpose into educating myself about finances is to build wealth. I want to be a very wealthy person. Now, your objection to the previous statement should not be jealousy and is not needed. I know my worth and my intent. Don't reply to this topic denouncing my dream of wealth. My goal is to save 10k. I am already half way there but I don't know what to do when I get it. Some say the multifamily strategy, the buy land and put trailers on it strategy, to don't invest in mutual funds(rich dad poor dad). I stay in brookhaven, ms but i do plan on moving I'm just not sure where (I'm open with no kids and not married) There are many success stories and me reading rich dad poor dad has me interested in real estate. I have a degree in advertising & marketing but i don't like sales even though I sold 5 cars in my first month with no experience. Sales aren't my thing even though my dad done it for 30+ years. My problem is being overwhelmed with all these investing strategies people think is best to build great wealth. I don't know where to start. the information is so overwhelming I FEAR that I won't get started because I don't know where to start. I do want to own a jet one day (don't discredit my dream lol) My credit is ok, thus buying a 2015 impala with 2.4% interest rate. I just need your opinion or advice on HOW TO GET STARTED? Also, your first investment stories will give me life. PLEASE HELP!!!
If I were you, I would sell that car. You are young. Go spend 6 months in Buenos Aires or Chiang Mai (both very low cost of living), responsibly get in trouble there. You NEVER know who you will meet, what business contacts you can make, or what you will learn. Don't rush into buying real estate with $5k in the bank mate.
I am also single with no kids, but this military / physician career path I find myself in prevents me (sort of) from doing what I described. But travel has been my BEST teacher, hands down. The months I spent traveling taught me more about life than 13 years of post high school education ever has. I usually don't rant like this, but alas.
0 Reply
Antonio Evans
OP
Brookhaven, MS · Member since 2016 · 38 posts · 7 votes
10y
Originally posted by @Andrey Y.:

Originally posted by @Antonio Evans:
Im 25, 35k a year. 60,000 (25k car 35k student loans) in debt. I work for my capital. Parents don't help me live. My main purpose into educating myself about finances is to build wealth. I want to be a very wealthy person. Now, your objection to the previous statement should not be jealousy and is not needed. I know my worth and my intent. Don't reply to this topic denouncing my dream of wealth. My goal is to save 10k. I am already half way there but I don't know what to do when I get it. Some say the multifamily strategy, the buy land and put trailers on it strategy, to don't invest in mutual funds(rich dad poor dad). I stay in brookhaven, ms but i do plan on moving I'm just not sure where (I'm open with no kids and not married) There are many success stories and me reading rich dad poor dad has me interested in real estate. I have a degree in advertising & marketing but i don't like sales even though I sold 5 cars in my first month with no experience. Sales aren't my thing even though my dad done it for 30+ years. My problem is being overwhelmed with all these investing strategies people think is best to build great wealth. I don't know where to start. the information is so overwhelming I FEAR that I won't get started because I don't know where to start. I do want to own a jet one day (don't discredit my dream lol) My credit is ok, thus buying a 2015 impala with 2.4% interest rate. I just need your opinion or advice on HOW TO GET STARTED? Also, your first investment stories will give me life. PLEASE HELP!!!
If I were you, I would sell that car. You are young. Go spend 6 months in Buenos Aires or Chiang Mai (both very low cost of living), responsibly get in trouble there. You NEVER know who you will meet, what business contacts you can make, or what you will learn. Don't rush into buying real estate with $5k in the bank mate.
I am also single with no kids, but this military / physician career path I find myself in prevents me (sort of) from doing what I described. But travel has been my BEST teacher, hands down. The months I spent traveling taught me more about life than 13 years of post high school education ever has. I usually don't rant like this, but alas.
Wow. Interesting with the traveling. So spending the money on traveling and saving for investing is better?
0 Reply
Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
10y
Keep it simple. There are a lot of flashing lights and fancy strategies in this business that sidetrack people. Don't over complicate it by looking at them. A deal that is a good deal will work in a lot of ways. A deal that is a bad deal, will work in very few strategies if any. It all starts with a good deal. - I would suggest sticking to the basics as there is a ton of money in any of them - Flip/Wholesale/Landlord - Take one of those and get really good at finding deals that fit one of those methods.
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Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
10y
My first impression was that you should be driving a 10 year old car you paid cash for and not a new car you owe $25K on. If you can sell the car and break even, I would get rid of it and use the $10K to pay cash for a car. If you are under water on the car, it may be better to work hard to pay it off. If you keep that car, drive it for 15 years.
Debt for cars is bad debt. I pay cash for all my cars. Debt for income producing property is different.
You may not like sales, but it will give you highest income producing opportunity of any career. I recognized that years ago when I took a part time job in sales while I was in school. I was selling electronics on pure commission working part time making $30K a year in 1993. I worked in sales for years and no I didn't love it, but I was good enough to make money for real estate purchases.
I would suggest for your first purchase to house hack a duplex. Live in one side and the rent from the other side should pay your payment. Imagine that, no car payment and no rent payment. Then working in sales you can save all your cash to buy rental properties.
Good luck!
0 Reply
Andrey Y.
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
10y
Originally posted by @Antonio Evans:

Originally posted by @Andrey Y.:
Originally posted by @Antonio Evans:

Im 25, 35k a year. 60,000 (25k car 35k student loans) in debt. I work for my capital. Parents don't help me live. My main purpose into educating myself about finances is to build wealth. I want to be a very wealthy person. Now, your objection to the previous statement should not be jealousy and is not needed. I know my worth and my intent. Don't reply to this topic denouncing my dream of wealth. My goal is to save 10k. I am already half way there but I don't know what to do when I get it. Some say the multifamily strategy, the buy land and put trailers on it strategy, to don't invest in mutual funds(rich dad poor dad). I stay in brookhaven, ms but i do plan on moving I'm just not sure where (I'm open with no kids and not married) There are many success stories and me reading rich dad poor dad has me interested in real estate. I have a degree in advertising & marketing but i don't like sales even though I sold 5 cars in my first month with no experience. Sales aren't my thing even though my dad done it for 30+ years. My problem is being overwhelmed with all these investing strategies people think is best to build great wealth. I don't know where to start. the information is so overwhelming I FEAR that I won't get started because I don't know where to start. I do want to own a jet one day (don't discredit my dream lol) My credit is ok, thus buying a 2015 impala with 2.4% interest rate. I just need your opinion or advice on HOW TO GET STARTED? Also, your first investment stories will give me life. PLEASE HELP!!!
If I were you, I would sell that car. You are young. Go spend 6 months in Buenos Aires or Chiang Mai (both very low cost of living), responsibly get in trouble there. You NEVER know who you will meet, what business contacts you can make, or what you will learn. Don't rush into buying real estate with $5k in the bank mate.
I am also single with no kids, but this military / physician career path I find myself in prevents me (sort of) from doing what I described. But travel has been my BEST teacher, hands down. The months I spent traveling taught me more about life than 13 years of post high school education ever has. I usually don't rant like this, but alas.
Wow. Interesting with the traveling. So spending the money on traveling and saving for investing is better?
Its the best possible scenario, based on what you describe.
0 Reply
Antonio Evans
OP
Brookhaven, MS · Member since 2016 · 38 posts · 7 votes
10y
Originally posted by @Joe Splitrock:

My first impression was that you should be driving a 10 year old car you paid cash for and not a new car you owe $25K on. If you can sell the car and break even, I would get rid of it and use the $10K to pay cash for a car. If you are under water on the car, it may be better to work hard to pay it off. If you keep that car, drive it for 15 years.
Debt for cars is bad debt. I pay cash for all my cars. Debt for income producing property is different.
You may not like sales, but it will give you highest income producing opportunity of any career. I recognized that years ago when I took a part time job in sales while I was in school. I was selling electronics on pure commission working part time making $30K a year in 1993. I worked in sales for years and no I didn't love it, but I was good enough to make money for real estate purchases.
I would suggest for your first purchase to house hack a duplex. Live in one side and the rent from the other side should pay your payment. Imagine that, no car payment and no rent payment. Then working in sales you can save all your cash to buy rental properties.
Good luck!
Thank you for your response. Yes, house hacking is what everyone is recommending I do.ALSO, don't get mad lol I DO HAVE A 10 year old car PAID FOR. The new car was a luxury thing on my part just in case my 15 year old car having trouble (Which it did) I just talked to my dad. He been a car sales man for 35+ years so I can get rid of it easily.
0 Reply
Judy Parker
Rental Property Investor · Closter, NJ · Member since 2015 · 884 posts · 722 votes
10y
First of all, pay down all that debt prior to getting deeper into additional debt.
0 Reply
Antonio Evans
OP
Brookhaven, MS · Member since 2016 · 38 posts · 7 votes
10y
Originally posted by @Judy Parker:

First of all, pay down all that debt prior to getting deeper into additional debt.
Yes. I talked to my dad today about getting rid of my car in the next 4 months. BP community has been on me about that car debt lol
1 Reply
Adam P
Investor · Chicago, IL · Member since 2010 · 76 posts · 55 votes
10y
Obviously get rid of the car and pay off the car debt. Buy a 10 year old Japanese car for $2k. It will work, be cheap to maintain, and then set as a goal, once you hit $250k in net worth, you will buy the $25k car again. If you feel cars are important to you, and you have access to a dealer, buy a 3 year old car from a dealer auction, then after a year sell it on craigslist, and repeat the process. You can drive a 3 year old car forever for free using this strategy.
Focus on your dayjob income. It is tough to really get ahead earning $35k a year. Start driving for uber, or doing any other side hustles you can thing of to get your income over $80k. Save like crazy, make sure you always have 6 months worth of living expenses in the bank over and above your investments. This will allow you to be lower stress, and perform better in your day job and investing career. Don't invest until you have the 6 month buffer. Otherwise 1 boiler or roof could ruin you.
Then start investing in property. House hacking is a great way to start. Then with savings, once you have enough buy another multifamily, and then another. Before you know it, you will be a successful real estate investor.
At your age, I would also consider travel. Take 6 months out in South America or Asia, and will change your perspective on everything, and likely make you better at your day job, especially sales.
2 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
10y
Originally posted by @Antonio Evans:

Originally posted by @Joe Splitrock:
My first impression was that you should be driving a 10 year old car you paid cash for and not a new car you owe $25K on. If you can sell the car and break even, I would get rid of it and use the $10K to pay cash for a car. If you are under water on the car, it may be better to work hard to pay it off. If you keep that car, drive it for 15 years.
Debt for cars is bad debt. I pay cash for all my cars. Debt for income producing property is different.
You may not like sales, but it will give you highest income producing opportunity of any career. I recognized that years ago when I took a part time job in sales while I was in school. I was selling electronics on pure commission working part time making $30K a year in 1993. I worked in sales for years and no I didn't love it, but I was good enough to make money for real estate purchases.
I would suggest for your first purchase to house hack a duplex. Live in one side and the rent from the other side should pay your payment. Imagine that, no car payment and no rent payment. Then working in sales you can save all your cash to buy rental properties.
Good luck!
Thank you for your response. Yes, house hacking is what everyone is recommending I do.ALSO, don't get mad lol I DO HAVE A 10 year old car PAID FOR. The new car was a luxury thing on my part just in case my 15 year old car having trouble (Which it did) I just talked to my dad. He been a car sales man for 35+ years so I can get rid of it easily.
Haha, I am so mad at you. You have a paid for car and you dropped $25K on something new!
Lets say your car payment is $450 per month, so by selling your new car you would save up $5400. Add that to your $10,000 and you would have a $15,400 down payment. You can probably buy a duplex that is between $60K and $100K with that down payment, depending on financing. Lets say the property is $100K and your payment with tax and insurance is $650. You rent one unit for $650 and live in the other. Now your saved rent money combined with money you saved on car payment is over $1000 per month. You could save up over $12,000 per year to put towards more properties. Maybe my numbers are off some, but you get the point.
0 Reply
Antonio Evans
OP
Brookhaven, MS · Member since 2016 · 38 posts · 7 votes
10y
Originally posted by @Joe Splitrock:

Originally posted by @Antonio Evans:
Originally posted by @Joe Splitrock:

My first impression was that you should be driving a 10 year old car you paid cash for and not a new car you owe $25K on. If you can sell the car and break even, I would get rid of it and use the $10K to pay cash for a car. If you are under water on the car, it may be better to work hard to pay it off. If you keep that car, drive it for 15 years.
Debt for cars is bad debt. I pay cash for all my cars. Debt for income producing property is different.
You may not like sales, but it will give you highest income producing opportunity of any career. I recognized that years ago when I took a part time job in sales while I was in school. I was selling electronics on pure commission working part time making $30K a year in 1993. I worked in sales for years and no I didn't love it, but I was good enough to make money for real estate purchases.
I would suggest for your first purchase to house hack a duplex. Live in one side and the rent from the other side should pay your payment. Imagine that, no car payment and no rent payment. Then working in sales you can save all your cash to buy rental properties.
Good luck!
Thank you for your response. Yes, house hacking is what everyone is recommending I do.ALSO, don't get mad lol I DO HAVE A 10 year old car PAID FOR. The new car was a luxury thing on my part just in case my 15 year old car having trouble (Which it did) I just talked to my dad. He been a car sales man for 35+ years so I can get rid of it easily.
Haha, I am so mad at you. You have a paid for car and you dropped $25K on something new!
Lets say your car payment is $450 per month, so by selling your new car you would save up $5400. Add that to your $10,000 and you would have a $15,400 down payment. You can probably buy a duplex that is between $60K and $100K with that down payment, depending on financing. Lets say the property is $100K and your payment with tax and insurance is $650. You rent one unit for $650 and live in the other. Now your saved rent money combined with money you saved on car payment is over $1000 per month. You could save up over $12,000 per year to put towards more properties. Maybe my numbers are off some, but you get the point.
Lol i know your mad and other investors will be once they read it hahahaha but yeah i think your numbers are off a little but I UNDERSTAND YOU COMPLETELY
0 Reply
Antonio Evans
OP
Brookhaven, MS · Member since 2016 · 38 posts · 7 votes
10y
Originally posted by @Joe Splitrock:

Originally posted by @Antonio Evans:
Originally posted by @Joe Splitrock:

My first impression was that you should be driving a 10 year old car you paid cash for and not a new car you owe $25K on. If you can sell the car and break even, I would get rid of it and use the $10K to pay cash for a car. If you are under water on the car, it may be better to work hard to pay it off. If you keep that car, drive it for 15 years.
Debt for cars is bad debt. I pay cash for all my cars. Debt for income producing property is different.
You may not like sales, but it will give you highest income producing opportunity of any career. I recognized that years ago when I took a part time job in sales while I was in school. I was selling electronics on pure commission working part time making $30K a year in 1993. I worked in sales for years and no I didn't love it, but I was good enough to make money for real estate purchases.
I would suggest for your first purchase to house hack a duplex. Live in one side and the rent from the other side should pay your payment. Imagine that, no car payment and no rent payment. Then working in sales you can save all your cash to buy rental properties.
Good luck!
Thank you for your response. Yes, house hacking is what everyone is recommending I do.ALSO, don't get mad lol I DO HAVE A 10 year old car PAID FOR. The new car was a luxury thing on my part just in case my 15 year old car having trouble (Which it did) I just talked to my dad. He been a car sales man for 35+ years so I can get rid of it easily.
Haha, I am so mad at you. You have a paid for car and you dropped $25K on something new!
Lets say your car payment is $450 per month, so by selling your new car you would save up $5400. Add that to your $10,000 and you would have a $15,400 down payment. You can probably buy a duplex that is between $60K and $100K with that down payment, depending on financing. Lets say the property is $100K and your payment with tax and insurance is $650. You rent one unit for $650 and live in the other. Now your saved rent money combined with money you saved on car payment is over $1000 per month. You could save up over $12,000 per year to put towards more properties. Maybe my numbers are off some, but you get the point.
But If i save up it'll be about 10K i can put down BUT if I save just that when is a good time to search for property if I don't have the extra cash to fix it up?
0 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
10y
Originally posted by @Antonio Evans:

Originally posted by @Joe Splitrock:
Originally posted by @Antonio Evans:

Originally posted by @Joe Splitrock:
My first impression was that you should be driving a 10 year old car you paid cash for and not a new car you owe $25K on. If you can sell the car and break even, I would get rid of it and use the $10K to pay cash for a car. If you are under water on the car, it may be better to work hard to pay it off. If you keep that car, drive it for 15 years.
Debt for cars is bad debt. I pay cash for all my cars. Debt for income producing property is different.
You may not like sales, but it will give you highest income producing opportunity of any career. I recognized that years ago when I took a part time job in sales while I was in school. I was selling electronics on pure commission working part time making $30K a year in 1993. I worked in sales for years and no I didn't love it, but I was good enough to make money for real estate purchases.
I would suggest for your first purchase to house hack a duplex. Live in one side and the rent from the other side should pay your payment. Imagine that, no car payment and no rent payment. Then working in sales you can save all your cash to buy rental properties.
Good luck!
Thank you for your response. Yes, house hacking is what everyone is recommending I do.ALSO, don't get mad lol I DO HAVE A 10 year old car PAID FOR. The new car was a luxury thing on my part just in case my 15 year old car having trouble (Which it did) I just talked to my dad. He been a car sales man for 35+ years so I can get rid of it easily.
Haha, I am so mad at you. You have a paid for car and you dropped $25K on something new!
Lets say your car payment is $450 per month, so by selling your new car you would save up $5400. Add that to your $10,000 and you would have a $15,400 down payment. You can probably buy a duplex that is between $60K and $100K with that down payment, depending on financing. Lets say the property is $100K and your payment with tax and insurance is $650. You rent one unit for $650 and live in the other. Now your saved rent money combined with money you saved on car payment is over $1000 per month. You could save up over $12,000 per year to put towards more properties. Maybe my numbers are off some, but you get the point.
But If i save up it'll be about 10K i can put down BUT if I save just that when is a good time to search for property if I don't have the extra cash to fix it up?
You will need to calculate rehab costs and have cash for that and carrying costs. I would start searching today, just to learn about the market. Practice running the numbers and figure out how much money you need to have in your market. It is ok to spend a year looking and never put in an offer. You want to be prepared when the time is right. And get rid of that new car by the way...
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Antonio Evans
OP
Brookhaven, MS · Member since 2016 · 38 posts · 7 votes
10y
Originally posted by @Joe Splitrock:

Originally posted by @Antonio Evans:
Originally posted by @Joe Splitrock:

Originally posted by @Antonio Evans:
Originally posted by @Joe Splitrock:

My first impression was that you should be driving a 10 year old car you paid cash for and not a new car you owe $25K on. If you can sell the car and break even, I would get rid of it and use the $10K to pay cash for a car. If you are under water on the car, it may be better to work hard to pay it off. If you keep that car, drive it for 15 years.
Debt for cars is bad debt. I pay cash for all my cars. Debt for income producing property is different.
You may not like sales, but it will give you highest income producing opportunity of any career. I recognized that years ago when I took a part time job in sales while I was in school. I was selling electronics on pure commission working part time making $30K a year in 1993. I worked in sales for years and no I didn't love it, but I was good enough to make money for real estate purchases.
I would suggest for your first purchase to house hack a duplex. Live in one side and the rent from the other side should pay your payment. Imagine that, no car payment and no rent payment. Then working in sales you can save all your cash to buy rental properties.
Good luck!
Thank you for your response. Yes, house hacking is what everyone is recommending I do.ALSO, don't get mad lol I DO HAVE A 10 year old car PAID FOR. The new car was a luxury thing on my part just in case my 15 year old car having trouble (Which it did) I just talked to my dad. He been a car sales man for 35+ years so I can get rid of it easily.
Haha, I am so mad at you. You have a paid for car and you dropped $25K on something new!
Lets say your car payment is $450 per month, so by selling your new car you would save up $5400. Add that to your $10,000 and you would have a $15,400 down payment. You can probably buy a duplex that is between $60K and $100K with that down payment, depending on financing. Lets say the property is $100K and your payment with tax and insurance is $650. You rent one unit for $650 and live in the other. Now your saved rent money combined with money you saved on car payment is over $1000 per month. You could save up over $12,000 per year to put towards more properties. Maybe my numbers are off some, but you get the point.
But If i save up it'll be about 10K i can put down BUT if I save just that when is a good time to search for property if I don't have the extra cash to fix it up?
You will need to calculate rehab costs and have cash for that and carrying costs. I would start searching today, just to learn about the market. Practice running the numbers and figure out how much money you need to have in your market. It is ok to spend a year looking and never put in an offer. You want to be prepared when the time is right. And get rid of that new car by the way...
Yeah I got to get rid of that. Thank you. Any extra advice I would love
0 Reply
Antonio Evans
OP
Brookhaven, MS · Member since 2016 · 38 posts · 7 votes
10y
Originally posted by @Adam P:

Obviously get rid of the car and pay off the car debt. Buy a 10 year old Japanese car for $2k. It will work, be cheap to maintain, and then set as a goal, once you hit $250k in net worth, you will buy the $25k car again. If you feel cars are important to you, and you have access to a dealer, buy a 3 year old car from a dealer auction, then after a year sell it on craigslist, and repeat the process. You can drive a 3 year old car forever for free using this strategy.
Focus on your dayjob income. It is tough to really get ahead earning $35k a year. Start driving for uber, or doing any other side hustles you can thing of to get your income over $80k. Save like crazy, make sure you always have 6 months worth of living expenses in the bank over and above your investments. This will allow you to be lower stress, and perform better in your day job and investing career. Don't invest until you have the 6 month buffer. Otherwise 1 boiler or roof could ruin you.
Then start investing in property. House hacking is a great way to start. Then with savings, once you have enough buy another multifamily, and then another. Before you know it, you will be a successful real estate investor.
At your age, I would also consider travel. Take 6 months out in South America or Asia, and will change your perspective on everything, and likely make you better at your day job, especially sales.
Wow. This really has helped me
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