All Forum Posts by: Isiah Ferguson

I like the idea of buying a duplex, etc. so you can offset your mortgage.  No need at your age to try to find your dream home.  Five years from now when you have your third baby on the way, you can buy something bigger and rent your side of the duplex.  

I'm very conservative.  I definitely would not take more out of the refi of the two rentals than you need.  I know if I have it, I'll spend it.  I love the idea of having free and clear deeds!  Maybe take out 50-70% from the larger rental, keep one free and clear for future leverage (or emergencies) and use that to put 20% down on a duplex.  If you can qualify for conventional with your expenses on your debt to income, then just try to make large extra payments on the CC.  I don't know how you are, but many of us will spend that credit if we have it available too, LOL.  Keeping debt on it and making timely payments, reducing the debt is good for your credit score.  

I agree with trying to do away with the auto lease.  Better to be car poor and investment property rich (says the guy who buys a new (used) car to  play with nearly every year).  With another child coming, I think you will appreciate having the peace of mind that you are not leveraged to the hilt and still have a larger, more comfortable place to live. Best of luck with your journey.  

Read the book Rich Dad Poor Dad. The house you live in is not an asset it is a liability. This is because it is not making you cash every month. Buy assets that will cash flow to pay for your house, cars, college education for your kids etc. Do this while you are young and you will soon not have to worry about money or if you were to lose your jobs.

Put off that dream. 

Buy a quafplex and live in one unit. Every 2 years but another and live in it. Do this a few times then buy your dream house and have it paid for from cash flow.

@Isiah Ferguson

I would refi both properties with a conservative 70% LTV thats about 180k in cash and to me its a hell of a way to gain some momentum. Based on that you can house hack yourself to a 4-plex live for free, bank all your work income while utilizing your cashflow. In a few years you should be able to quit your job if you do this right and stick with the plan.

If you can get a HELOC to pay down your CC thats even better, I wouldn't pay off anything with a low interest because you can use that money to buy more real estate

Good luck 

Well Don’t be hard on yourself you are getting a lot done at your age . You are making the right choices and asking the right questions . Financial wealth is in your future 

 Fannie Home Ready with a grant for the down payment.  Let me know if you need a referral.  We don't do them at US Commercial, but we refer them out to reliable sources.  Moderator, this is not a solicitation.

Congratulations on the baby on the way.  Exciting times!!

Stephanie

Sounds to me like you are pretty financially savvy to already have 2 rental properties paid off. If you get the promotion try and live at the same level as now (I know it will be hard with another mouth to feed) and put the rest toward that debt.

I would go conventional if possible unless you are in a huge rush. Get a LOC on one of those properties just in case but only use it for real estate or an extreme emergency. I wouldn't pull out the equity unless you have a plan for using it and you think you can get a good return with it. As with anything, don't risk it if you aren't willing to lose it. And lastly get rid of those leases like @Dennis M. said. You can take a leased car and trade it in at another dealership for a different new/used car. Do it a month before the lease is up. That's how we got my wife out of the one she had before we were married. 

You are doing great, stay the course.