All Forum Posts by: Gary Nelson

Condo sounds like it would negative cashflow each month after you add vacancies, repairs, capex, etc. Could sell the condo, break even there and just get rid of that liability holding you back? Then househack a duplex while focusing on building your W2 incomes and spend more time on BP. I also wonder if your condo has appreciated much being in such a hot market, granted you haven't owned the property that long...

Abraham Anderson Awesome deal and sounds like it was well deserved - keep it up!

Lucy McDonald My niche here in Branson is long-term buy & hold multi-family, however vacation rentals are very popular and seem to perform well. I have several friends that are heavily invested in the space and could help you out. My agent is the greatest (he is also a local real estate investor). Private message me if interested and I will send you his contact info.

@Account Closed Pay down debts... Guaranteed ROI!

Richard Yerger Congrats on actually doing something about your debt and taking action! Your situational awareness and willingness to ask for help is a huge first step. Do you have a mortgage or rent? Let's assume that your income will not increase significantly (although that helps), the most common way to start is by eliminating expenses one at a time. Start by liquidating large liabilities, such as a vehicles payment(s). If you're not upside down on the loan, you can grab some equity there and purchase a cheap ride out right. That can save several hundred dollars per month to be applied toward another one of your loans. Get that paid off and you have much more firepower to attack the next one, including student loans. I encourage you to start sooner and pay off the smallest loans first. It gives you instant gratification as you see results faster and helps keep you motivated along the way. Once your debt is clear, that firepower turns into savings. At which point, you can start investing in assets that provide more cashflow. What helped me was realizing what APR actually meant and how it affects the loan. These days most people are financing $40k to purchase a $30k vehicle that is worth $25k after driving off the lot and is worth $10k by the time the loan is paid. Debt service is crushing the middle class and has become a part of our culture... Buck that trend and you can not only get out of debt, but accomplish your goal of building passive income to support a lifestyle beyond slingin' pizza dough.

@Benjamin Small

Congrats on your success - you're further along than most! Generally speaking, it is best to eliminate all bad debt, and caution folks that want to go to school by taking on more bad debt. Not saying that it is wrong to go back to school, however, borrowing money to do it is an extremely debatable topic. Nonetheless - choice is yours and good luck with that decision!

You should analyze your current rentals CapRate% compared against others on the market. I prefer small multi-family myself. Odds are that you can find a better performing property on a duplex, triplex or fourplex. Opt for a 1031-Exchange from your current rental into the multi-family and take advantage of low interest rates. Consider moving into one of the units and sell the home to pay off the bad debt and invest what is leftover into more properties or to fund your schooling.

Try to FHA the next small multi-family, because I doubt the bank will allow you to utilize that assistance program when you already own a home free & clear.