All Forum Posts by: Derrick Dill

Bitcoin, Ethereum. I put 2k into Ethereum beginning of year, it's increased 400%.. Hard to get those returns in stocks or real estate. With anything, do your due diligence, the bitcoin market is extremely volatile

I'd say wait it out for 7 more years, but keep in mind you have to work in nonprofit for those years. 7 years and it'll be all gone, and you can focus on other finances in the meantime.

Student loan forgiveness program is made for people pursuing non-profit careers, because let's say you're a public defendant lawyer, fighting the good fight for the needy. Median salary is 48k (per google), and you have 80k in loans, this person can't even pay off their loans, or stay afloat. People who pursue nonprofit jobs to help the world, shouldn't be burdened by debt or forced to pursue a "high income" job.

In regards to student loans, my dad went to school and worked part-time during school. During this time, he bought a house, a car, and had no student loans. I went to school full time, worked full time and drove a 1987 Volvo and rented, left with 40k in student loans, there was no vacationing or buying things I didn't need, I ate ramen for most of it.

The idea that we need to pick ourselves up by the bootstraps and suck it up isn't the problem, it's the skyrocketing cost of education and student loans. Why are my student loans at 7% and my mortgage is 3.5%? Loan for people's education cost double than my primary residence?

Nathan,

I was in your spot 4 years ago. I ended up house-hacking, a duplex 2bd/1ba, 2bd/1ba, rents for 1700$ now, and have a roommate (long time friend) that I rent to for 700$ = 2400$, mortgage impound account is for 2800$, so I pay about 400$ on a 450k property. It's not cash flowing, but I live for cheap in LA/OC. One year later I bought my first out of state property, then the following year another, and the following another. Now I have my duplex that I still live in that gives me great tax deductions and 3 out of state cash flowing properties. I suggest you start with house hacking.

Just wanted to point out that the appraisal stays with the property, other people will only be able to get financing for 143k. This is what the appraisers have deemed the property is worth. Another buyer can get a second opinion, but usually appraisers stay close to their fellow appraisers price.

I invested in lending club about 3 years ago and was getting 10%+ returns for a couple years, this year its down to ~6% or so. I have ~3k in there, and just use it to diversify some of my investments. There are better investments out there.

@Alexander Ramos

Depends on your LTV, need >20% equity to do a cash out in most cases. Cash-out refinance will probably raise your interest rate though.

If you put in a good amount of work into the property, I would consider the cash-out, but the main point is just to get out of the FHA loan (to get rid of PMI, and so you can do another FHA loan).

Sounds great. If you have 100k lying around..

You can do FHA 3.5% down, live in it until it's fixed up, then refinance and on to the next one. BRRR

Yes, you can refinance out of FHA to conventional and get rid of PMI

You should consider a 401k LOAN, instead of withdrawal if you need the cash.