All Forum Posts by: Isiah Ferguson

We've been living in our primary residence for 2 years now. Our payment PITI is $1100 and the market rent for our house is $1800 per month. I would love to turn our home into a rental but my wife doesn't. How can I persuade her this is a great idea ?. At this point she emotionally attached which I understand to a degree. SHe understand what REI can do for us but doesn't love it.

It seem like paying cash for a property and keeping is free & clear isn’t good. But does anyone has a free & clear portfolio ? What are the benefits of being free & clear. I have 2 free & clear rentals and feels good but I am tempted to use leverage to scale. On the other hand, I feel like it better to save up the cash again n buy other free n clear rental. What u think ? 

Congrats. Just do it, your gonna learn so much, house hack, & get your first property. It’s a win all the way around the board. 

@Dave Foster Thanks for the feedback. Idk but I think so many options can be not so good lol. Your scenario giving sounds like a great idea especially to avoid paying the govnt any of my funds. I will consider both buying 1 rental cash and another leverage. I think that’s a win win. Keeping my primary with debt isn’t a bad idea either. It’s cheap financing and it’s only about 28% of my earned income. 1 of my free and clear rentals right now can wash the payment if need be as well. Manly, as long as me and my wife is on the same page, it’s all worth. With her it’s about comfort and stability, she can care less about buying property but understand what it can do for us. Somewhat complicated but we’re figuring it out. We’re first generation intentional wealth builders in our family.

@Jasmine H. I completely understand. I swear I need a life coach. Me and my wife did not grow up with many choices and now we have so many ugh. But we are blessed. We are first generation when it come to investing, so we’re figuring things out on the go. It’s a journey and we are super positive.

@Jasmine H. Hey now, thanks for reaching back. Congrats on all you guys success. Family legacy is super important and your doing it. As for me and my wife decisions we still have our 2 rentals free and clear. Looking to 1031 exchange our 1st buy. It has been great for the last 4 years, seriously no real problems with consistent renters. Looking back, we just don’t love the area. We’ll keep our 2nd rental, it’s perfect no complaints. When it comes to our dream home me and my wife meet in the middle. We still have great school and great neighborhood but we kinda too the millionaire next door approach. Great neighborhood, convenient area to highways etc & 5-7 minutes from my job. It’s not our “dream home” bit my wife and kids love it. Also, throughout the process i always kept in mind to buy a house which can be a potential rental long term. We still figuring things our moving forward. We haven’t yet use debt for a rental but our home is financed. As far as of right now, with the sale of 1 of our rentals coming up. We tryna see what’s a better route to take. 1031 exhange as I mentioned earlier or take the funds from the sale to payoff our primary residence. Also, we 100% consumer debt free expect our house & increased our earned income. But thanks for checking, we appreciate it. Best ofluck on your journey.

This is a world crisis which was unexpected and there’s no telling when this virus will be defeated. My 3 units Free & Clear. I haven’t received any call as of yet and hopefully I don’t. But with proof of lost employment, for the first month I will document a agreement for my tenants to forfeit their security deposit for the 1st month. If this issue isn’t fixed after the 30days, I will send a letter document going into the 2nd month basically stating the next 30days our company will forfeit your rent payment but if nothing is paid by the 3rd month, we will filed eviction immediately and preceded with the process. I don’t mine throwing in a extra FREE rental month because my properties are Free and Clear. It’s only right. 

Cashflow as after all expenses are paid. As far as ROi meaning 0 to minimum money into an deal, which can be high ROi but very low monthly cashflow after property expenses are paid. I thought the goal was to extremely increase your passive income regardless of ROi ? 

What’s more important CASHFLOW or ROi ?