All Forum Posts by: Angela Justis

I am so focused on paying things off that I didn't even think to pull resources from what I'd already accumulated. That focus works like blinders, sometimes. Thank you!

Hi Everyone--

I wasn't sure exactly where to ask this question and sorry it’s so long but here goes....And yes, I'm OCD. lol

Goal: Buy/Hold Residential properties to exceed my current income after medical insurance costs and taxes. I also want to get away from SunTrust Mortgage ASAP so they can't mess up my credit anymore.

Dilemma: Trying to figure out where I should be applying all of my extra money to achieve goals the quickest way.

Current asset:

• FHA primary residence, $52,000 mortgage balance, lived here 12 years
• 6.75% APR
• 14 years left of mortgage with SunTrust (Can't stand them. They take over a week to apply payments and have even lost payments but are quick to cash the check!)
• Neighborhood - good rental area - low vacancy - house values currently increasing
• Ran house through Rental Property Calculator and showed cash flow of between $0-$100/month currently. House built in 1940 so Cap Ex runs a little higher than a new house. Used numbers on the high side to be conservative.
• Current equity is $25,000 if I sold my house today, not including selling fees. House would sell quickly.
• My house is the highest interest rate debt I have currently.

Variables:

• I have 5 dogs, including 2 pitbulls (makes relocating a bit difficult but not impossible)
• Chap 13 bankruptcy successfully discharged in Oct 2015 but my credit score is 719 as of Dec 2015. I'll probably have to wait two years before doing anything anyways, Oct 2017.
• Low money saved so far but able to save a lot more now.
• Credit would be back to almost perfect again in two years to open up a lot more financing options

Current options I've thought of so far:

• Refinance house with different lender, 30 yr fixed mortgage:

• Cash flow would be $300/month after 4 years when rented out
• Mortgage would go back to 30 years
• I'd have to wait some due to refinance ding on my credit before financing another property (maybe two years?)
• Four years to save for down payment on another house (20% down-conventional)
• Rent would pay off house
• Cash flow would increase to $500/month after 26 years

• Refinance with a different lender for a 15 yr fixed mortgage:

• Mortgage payment wouldn't change
• Cash flow $0-$100/month for 11 years
• Cash flow $500/month after 11 years
• Again, a ding on my credit due to new mortgage (maybe two years?)
• Four years to save for down payment on another house (20% down-conventional)
• Rent would pay off house

• All extra money into paying off current mortgage:

• I could pay current house off in about 5 years
• Three years to save money for down payment on another house (could use FHA again)
• Cash flow would be $500/month as soon as house is rented
• I would pay off house

• Continue making minimum mortgage payment, extra money into savings account:

• Four years to save for down payment on another house (20% down-conventional)
• Cash flow $0-$100/month for 10 years
• Cash flow $500/month after 10 years
• Rent would pay off house

Anything I missed or any words of wisdom on which path I should take to be able to jump into investing as quickly as possible?

And, as always, you guys rock! :)  Thanks in advance!

If you pay full cash, you won't need to worry about your credit. Like Jeff said, we'd need to know what your goal is. What is the next step you're wanting to take that your bankruptcy might affect?

It could be and it would probably add value to the house with the extra square footage. It's just a bit more than I wanted to do right now. I'd need to run A/C vents and a storm door.

Awesome ideas! Thank you all so much! I never thought to use bamboo outside and had never heard of ThermoWood. I've heard good things about composite. I appreciate all of the input!

Hi Everyone!

There is so much information here that I couldn't find an answer to my specific question so if I'm duplicating a question somewhere, please feel free to post a link to an existing post!

My issue is I have two covered "porches" on my current house. I've had to replace patches of wood on them three times in the past 12 years and I'm hoping to make my house my first investment property. So, I'm looking for a long-term solution.

My house is off-grade so there is no chance of using concrete slabs or tiles for these areas. I have a covered, screened in front porch that DOES get wet with the Florida storms and it does get plenty of sun but not enough directly to really dry the porch out quickly. The back porch is where my washer and dryer reside and it also gets wet but doesn't get quite as much sun and takes forever to dry. This area is not screened in but I will need to be able to move the washer and dryer around easily without damaging the floor. So, the material I need will need to be sun, water, and scratch resistant but economical. I may be asking for too much! lol

I'm looking for a long-term, low maintenance flooring to use for both of these areas, hopefully the same type of flooring to make things simple.

I'd rather not use decking planks as I don't want bugs coming up into the porches and it would make it difficult to move the washer and dryer around.

Anyone have any recommendations on the best flooring to use in these areas? 

I've already used plywood and OSB but both are now warped and virtually rotten. So, neither will work in these areas unless you know of some way of completely waterproofing them.

One thing about Jax that I can tell everyone wanting to do business in our area: One street may be a good street while the very street behind it might look like a section 8 or the block to the left or right is in shambles with trash and junk cars all over the place. The lines between a good rental and a bad rental can literally be a street or block apart. I live in Jax on the Westside and even I have to do a drive-by of the whole area to really get a good feel of the neighborhoods as a whole. This is especially true on the Westside and Northside of Jax. My property value has been going up and down for years according to Zillow and the tax collector's office by thousands of dollars.

I watch Zillow like a hawk to see how they advertise properties that I KNOW are in bad neighborhoods and see what they are charging for them. A lot of them would financially be considered rip-offs. Really do your due diligence when investing in Jax on these sides of the I-10/95 junction.

Is it taxed like regular wages or as a capital gains type tax?

I'm a relatively new member to BiggerPockets looking to dive into the real estate market. My goal is to have enough rental properties that I do not have to work a regular full-time job anymore. I look forward to meeting like-minded individuals and exchanging information for mutual success! :)