All Forum Posts by: Isiah Ferguson
Isiah Ferguson has started 66 posts and replied 315 times.
Post: I want more rental properties but wife want a SFH ?
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Lol this exactly what it is. Dave vs Robert. But I am all for Primary being free and clear and buisness leveraged.
@Isiah Ferguson Sounds like a classic debate of Dave Ramsey vs Robert Kiyosaki. Your wife is following Dave with the paid-off mortgage and you’re in the Kiyosaki camp where good debt is a friend. The forums could go all day debating who is right. What really matters is which is best for your situation. Have you tried to get your wife to look at the benefits of leverage and your house isn’t an asset viewpoint? Bottom line, happy wife, happy life. Good luck!
Post: I want more rental properties but wife want a SFH ?
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Originally posted by @Marcus Johnson:
Cash out refi commercial loan 15 year with small bank. 4.25% rate. Pulled out 48 k. I’m putting this together with other money I’ve saved up and plan on putting 20 to 25% down in either a 2 plex or 4 plex.
Thank you. Make sense. Good luck moving forward
Post: I want more rental properties but wife want a SFH ?
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Originally posted by @Marcus Johnson:
@Soh Toni’s
You’re missing three problems with your idea. 1st over 99% of foreclosures are with people that have mortgages.
Second when your mortgage is paid off you can take that amount that you were paying mortgage payments on and save it and you’ll have a ton of cash coming in each month.
Third you don’t pay any interest to the bank.
Personally with my situation I do a little bit of each I keep a lot of equity in my properties but I also use some of that equity to buy other investment properties Due to appreciation and putting 25% down payments. My cash flow was also good and allows me to save up for other investment properties and emergency fund. Plus both my wife and I work full-time and we live in a modest home which allows us to save cash by weekly and invest in Roth IRAs.
Do you have a HELOC on your properties to allow you to pull the cash out ?
Post: I want more rental properties but wife want a SFH ?
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Originally posted by @Soh Tanaka:
If you really think about the financial part of it, it makes sense to have a mortgage on your own home. Owning your home free & clear sounds like a good safe plan, until you realize that in order to be free & clear, you have to put that much money to it, so you'll have a lower payment but will have less cash on your hands. That is less safe to me than having no mortgage payment.
That's understandable but what if you have to cash to do so.
Post: I want more rental properties but wife want a SFH ?
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Hello, BP.
Me and my wife currently have 2 properties free and clear.
1 Townhouse and a duplex. We live in the townhouse and currently renting the duplex.
Personally, I want to refi both properties and take the cash and buy a multi family property. Live in 1 unit and rent out the others.
My wife want to refi both properties and take the cash to buy our primary residence so it could be free and clear. In that space she says ill have my 2 rental properties and she'll have the free and clear primary home she always wanted.
My argument is "but what about scaling up to get more properties to offset out monthly expenses ??" Financial freedom.
Ultimately, I want my rental property buisness leveraged through the bank and my primary residence free and clear. This lifestyle idea is great for me and what how I would like to live.
With all this being said. I think it would be fair for both of us if we decided to refi both properties and take the cash out. Use the cash to purchase a our primary residence, that way ill have my family in a home. But take out a HELOC on the primary residence incase a rental property deal pops up I am able to purchase it cash, then refi to use the to pay off the HELOC. In this case, we're able to scale up and also have the free and clear home as my wife want.
Is this fair and I am explaining this right ? am I missing something ?
Post: Cash reserves or credit ???
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Cash reserves are much better than credit cards being a silent partner. How do you guys benefit from Credit Cards with rental properties ?
Post: Cash reserves or credit ???
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
@Nicholas Scatton @Tommy F. Thanks for the response. You guys definitely make sense. I always thought too use my credit cards as silent partners in case some popped up as far as Mortgage payments, repairs etc on top of having them accounted for through expenses.
Post: Cash reserves or credit ???
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Hello, BP.
When you are going to refinance your property. I believe 1 of the requirements are "cash reserves" to cover 6 months to 12 months of funds to cover the mortgage. Instead of having cash, can a person use Credit Cards as reserves to qualify as a cash reserve requirement??
Post: First deal done! First rent check in the bank!
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Congrats, this is awesome. What kind of flooring did you put in and what countertops did you use ?
Post: Payoff mortgages or not
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Originally posted by @Joe Villeneuve:
Originally posted by @Isiah Ferguson:
Originally posted by @Joe Villeneuve:
No you wouldn't be cash flowing around 1800/month. That "extra" money you are adding to the cash flow is just money that is now catching up to the cash you negatively put into your properties.
Since you don't mention what the payments are now for those two mortgages, I'll assume it would be a total of 1000/month you are now paying for them. That said, it would equal 12k/year. That means if you pay off 115k, cash out of your pocket, it will take you about 10 years before you break even.
If you want to increase your CF, take that same 115k in cash and buy another property (20% DP) that will cash flow, and let the tenants payoff your mortgages. That's their job, and they're really good at it...don't help them...they don't need it,
Hey, you always have a interesting point when it comes too payoff properties vs leverage. What do you think about a person primary residence ? We all have to live some where. Should it be payoff ? Besides house hacking
?? I don't see any response