All Forum Posts by: Jaron Walling

@Justin Jefferson These forums are a free REI education. Take advantage of it, search old posts (learn from history), and read as much as possible because that's how you get unstuck and out of analysis paralysis. 

Like @Bruce Woodruff said you have to establish your goals and "why" REI or homeownership should be in your life. Owning RE isn't for everyone. There's zero shame in that. This market is challenging. People get wealthy all the time doing other things. There are numerous paths to wealth in this country; they can't all align with your goals. Don't let it discourage you.

Sometimes you have to jump. If you're financially stable, have an emergency fund, and have a buy [box] get into the trending C class neighborhoods and buy value. Buy a house walking distance from ____. Buy something close to parks, nature, trails, or outdoor venues. Buy a property you could live in and be proud to own. Ann Arbor is a great market. Grand Rapids is a great market (we just vacationed here and loved it!). Everyone is talking about Detroit lately. 

You gave yourself 4 years?? You should 5x that number. You could grow a portfolio but will it be sustainable? Will you be over leveraged and broke? My wife and think about REI in 5 year chunks. We don't rentals we wouldn't own for 5 years. We rent and treat our tenants great expecting them to stay for 5 years. The path is way longer than you think.

This question seem pretty naïve for someone that's flipped about 30 houses. 

The answer is no. The auctions are just as dry as the MLS and wholesaler deals. What ever you're doing to find/buy/create deals is working. Keep doing it.

PS; What ever I'm doing isn't working because we haven't bought anything. 

@John Dallas Nice! I don't think that's overly optimistic at all. Who said you need to build all 6 cabins at once? Build 2 or 3, get them running, collect some cash-flow, and see how the business goes. That gives you options to expand, hold, or sell land if the income isn't there. 

That's my two cents. We love North Carolina but we're 20 years from the retirement dream. 

Sell the Florida house. Unless you're up for another challenge holding and renting creates headaches and PM "fun" you don't have time for. 

Follow your dream in North Carolina. Maybe you're in limbo renting for a year while the primary residence gets built. Imo it's still better than operating an OOS, STR, at 60 years old.

@Travis A. There's only a few questions you need to answer to come up with the best option. 

1. When you bought this property did you intend to rent it out in the future?

2. Do you plan to move back to the states or potentially live in this property again?

3. Does it cash-flow as a rental? STR>MTR>LTR... Generally speaking high priced RE doesn't make sense for LTR.

If the answer is yes to any of those questions you have come to terms with renting a high cost, high quality property. You have expect the unexpected. Tenants will not treat this property like you do. Good PM is hard to find. If you have deferred maintenance this will be future headache and a phone call from a PM company. 

Don't fall in love with the interest rate. My wife and I were in same situation 2 years ago. Only difference was the location and value of the property. I had 3.5% rate, did a lot remodeling and heavy lifting, and decided to sell due to the 2/5 capital gains exclusion. In you're case you're looking a $500k deducted from capital gains. That's a massive savings! Rent out your property and stay abroad long enough and you'll loose those savings forever. Objectively look at your property as STR>MTR>LTR, run the numbers, and see if it cash-flows. If you're negative and looking at potential deferred maintenance I'd sale it and enjoy the memories.

@Elizabeth Leb Every dollar of that $20k needs a purpose. Take the advice from @Nathan Gesner and @Bud Gaffney and learn as much as possible BEFORE buying RE. I started out researching my market by cycling the city and getting in shape. It was a win-win. I had $25k cash. It took 6 months of market research (you won't reinvent the wheel), 2 months to build spreadsheets (analysis paralyze), 6-7 house tours (leverage a local RE agent), and 30 days to close with a conventional loan. 

Believe in yourself. Everyone in the forums is cheering for you. 

PS; I house-hacked with my brother for 2 years. 

 It's a great entry point but like most things that was the good ole' days! It's hard to stay that today. My former boss lived in trailer like 25 years ago, and saved thousands before buying a real home. They're frugal with money and invest wisely. It was a sacrifice that paid off because him and his wife are The Millionaire Next Door (literally). 

 Haha exactly then buy 12 of them! On paper they look great but in reality it's hard to make real wealth. I'm sure another savoy investor will chime in and change our minds, but that's my understanding of mobile homes. 

@Vince Nguyen Current primary. That's the predicament of using conventional financing. The lending is strict but the terms are great. It doesn't have to be occupied by tenants, just a signed lease + deposit. You'll have to bridge that "gap" or come up with more money for the DP before purchasing the triplex. Some people pull a HELOC on there current property to do it, but it's like robbing Peter to pay Paul. If you already have a super low rate a cash-out ReFi doesn't help. Just depends on your current rate, strategy, future cash-flow, etc.

If you’re serious about this endeavor put your current home on Zillow to rent with an occupancy in 90 days before you sign a PA for the next house.

There are other lending products that are not as strict but the terms are different. I'd research them before you buy. Best of luck man. 

 He was helping a friend in a weird situation but $700 was fairly close to what others rented for. When he sold it was basically a wash, less the cash-flow collected. There was no appreciation on the trailer.   

What's your time worth? He did the repairs and remodel himself. There was no scale and he didn't own the dirt. He made no money. I guess don't be in that situation if you buy a mobile home? Find something that cash-flows like crazy or don't buy it.