Hey there BP, I'm brand new to site . Looking to learn and network all I can .
So some basic bullet points about me ..
. 34 years old , sole provider for my family which consist of my wife and out son ( 17 months old ).
. Own one duplex that doesnt cash flow but suppliments my living expenses .
. Owned the property about 4 years , has over 200k in equity , only 100k possibly available in heloc . 75%
. I currenty just save in savings account that compounds at 1.8 percent and dump 15% of income into 401k plus a 5% match from employer . Very hour intensive career that doesn't allow lots of free time .
. I pay an additinal 550 a month towards principal of my mortgage
. I know I'm not making my money work for me or being creative by any means to achieve real financial freedom , time for change
. So dun dun I joined BP to learn learn learn .
Welcome to BP @Kevin Barnard ! You will find a lot of resources and options through the site.
The duplex you own - you said it does not cash flow, but supplements your expenses? How so?
What is the rationale for paying an extra $550/month to your principal on your mortgage? Do you think through real estate investing, you can use those funds to facilitate a larger return?
@Dan Barli Thank you , I purchased for $388k 3% down fha . Payment was $2780 Refinanced later to 4% fixed 30yr . I live in the 1 bedroom 1 bath and rent the 2 bedroom 1 bath . Mortgage is down to $2350 currently . Tenant pays below market at $1650 . I did the math and at top rents I could move out and unit would cash flow . However I'm very nervous about that without having a new investment in place and place to live .
Netting $300 after expenses and reserves wouldn't offset renting in Los Angeles . My thought in paying down mortgage is when house is free in clear should cash flow $3000 or more monthly .
So paying to down mortgage faster in my initial thought process did two things .
1. Increases my leverage point for future investments
2. Creates retirement income if I can say pay off in 15-20 years rather than 30.
However after watching pod cast and browsing forums I don't really think that is the best option anymore. I feel I need to get creative and take the additional money I have to spend and invest in new investments .
I am new to this and feel very intimidated by the so cal market prices . I really need to get creative to invest here . I'm very Leary of investing in places I know nothing about.
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