All Forum Posts by: Jared Skov

@James Orr Paying your debt off early gives you a lot of dead equity and a 'nice looking' net worth. At $6K/mo, it's going to take 10+ years to pay yourself back, assuming no capital expenditures in that time period (rare). I agree that good buys are pretty much gone in CO, so it's tough. Do you buy your cash flow via 35% down or more while interest rates are still good? Do you wait for the next cooling off period? It's a tough call, what are your real estate goals? (short term vs. long term) 

@Luiz Souza I'm going 'safe' the middle of next year, 2019. I think the election year 2020 will have a lot of volatility and we're due for a down turn. Not trying to time the market, I just feel like there aren't great deals anymore where I live.

Vanguard has the best low cost index funds available. You can pick some 'bond tent' funds that will allocate roughly 80% bonds / 20% stocks. A very basic rule of thumb is to allocate whatever your age is into bonds (60% in your case) and the difference from 100 in stocks (40% in your case). 

@James Orr What are your real estate goals? A lot of investors aren't trying to pay low interest debt off early (<6%). You'd be better off leveraging your money and you could setup all your future purchases on 15yr loans (lower interest) and still achieve a quicker payoff date/cash flow. If you're just looking to retire early and be financially independent NOW, not having any debt could help achieve a LEAN FIRE or normal FIRE lifestyle earlier than building a long term wealthy foundation. 

@Brad Penley What's your retirement age goal? If your gross rents are $4000 in todays money (in 30 years), that would be a great asset to have in retirement. Even more so, who knows if we'll ever see 3.25% again on borrowed money. You should be able to find a good PM for 10% and gradually increase rents. If you're planning on selling eventually, sell now and leverage your tax free money. If you're trying to build long term wealth and have physical assets in retirement (not just stocks and bonds), keep it and it will be nice to have in your 60's and beyond...  

Live rent free while other people pay for your investment property, I would do it for sure. Rates are going to increase, lock it in now and start with a great foundation as your first investment. Try laminate flooring throughout in some of the units, it doesn't smell, stain, or wear like carpet does. Make sure you have enough money set aside for the unknowns like vacancy, appliances, etc. Finding tenants in the Fall is almost as hard as finding tenants in the Winter. 

Do whatever you can to make as much money and save as much as you can now. You can throw it into low cost Vanguard index funds (aggressive) or less aggressive Vanguard bonds and at least earn 3% on your money now. Figure out side hustles you can do, mowing lawns, start a window cleaning company, etc., anything to stack some cash, because with a house hack on a multi family unit, you're going to need at least 5% down. The harder you work, the luckier you get.

@Ronald L Gatewood

What location are you in? How much work do the units need to be rentable spaces? I would jump all over it, just having two of the spaces rented out covers your mortgage!

@Nick Seav

Portland, OR is the best option out of those listed, there are still some BRRRR options for MF. Is Oak Harbor, WA not an option? It's more Air Force and Navy focused, but the prices are still great to get into.

I'm doing both, staying diversified and can't pass on the 6% match where I'm at. This has been the order of my finances: 1) Payoff any short term high interest debt (above 5% for me), 2) save 6 months of liquid savings, 3) max 401k, 4) max roth IRA, 5) build long term real estate portfolio, 6) throw any extra into low cost Vanguard Fund (VTSAX for me)... I'm on step 5 and a little of step 6. If the stock market ever goes to zero like some doomsday people dream of, guns, ammo, water, and food are going to be important, not money.