All Forum Posts by: Craig Jeppesen

There is nothing wrong with being conservative. Right now I am paying down mortgages as prices are too high in my area. I do have seed money and my heloc ready if a good deal hits, but I have been outbid on my last few offers. If you take an investment out 30 years and total up total cashflow with keeping a loan 30 years vs 10-15 years you will have way more cashflow if you pay off the loan early. Of course you might have opportunity cost of being able to grow more properties quicker by paying loans off over 30 years. There is always risk in leveraging too many assets and I believe in not over leveraging in case of a downturn. 

Income wise you can afford the car so it would not be a huge deal if you get it now. I personally would wait and here is why. A dentists best investment is to invest in yourself and run your own practice. This could be very capital intensive to get started. I would max out my Roth IRA and put everything else to making sure you can purchase a practice in the next year or two. You will be spending 100s of hours a week for a few years to ensure your practice is successful and won't have time for a car for a few years. Ensure your financial success first and then you can buy toys.

Why would you even apply for a loan of your dti is too high? Underwriters make the decision not your loan officer.

I own my home. We built is 5 years ago. I believe a home can be an asset. My housing costs are locked in at a low rate and not increasing with inflation. I build equity each month. I use my equity to purchase and fix up other real estate. I have cash flow from these properties. I use this cash flow to pay down my mortgage even more creating more wealth and giving me more equity to buy more properties. Plus my house is nice and my wife is happy. I have an office where I can conduct my side business at home generating even more cash flow, my kids live in a nice area. I have a three car garage where I can store my cars and boat which helps maintain them longer so I don’t spend money as frequently on vehicles. And my monthly PMT is not much more than what a much smaller rental would be.

When you get new debt your score drops. I would never play the interest rate game with new credit cards. Your score will recover and improve in a few months and you will be fine.

In July 08, I finished building a home for my family (I was the contractor) and converted our first home ( townhouse) to a rental.

It sounds like they are separate listings. Why not just buy one or two or how many you can buy with your capital? You don’t have to buy all of them.

What is the debt? I think that is your problem. Can you sell a car or 2 and increase your cash flow to start saving to get into re.

Yes you can buy a second home as a vacation home with 5% down; no you won’t be able to do this with a 4plex. They will require 15-25% down as it is an investment property not a vacation house.

Yes it is possible to get traditional financing for a brrr; these would be ugly but only cosmetic fixes. Most brrr properties have other issues that will disqualify them from a traditional finance. For example fnma underwriting requires flooring, do if the carpet is torn out or a vinyl floor has rips all over it, you most likely won’t be able to get a traditional mortgage until you have fixed it up and refinanced.