All Forum Posts by: JD Martin

Congratulations! That does produce a high, doesn't it? Versus when you look around and there's nothing out there. 

 I think this is an excellent point. If you have a huge amount of liquid reserves relative to your monthly expenses, and your husband is still worried, that may just be his nature, or he may not understand the concept of debt as a tool. If this is not true, however, he may be coming from a perfectly rational place in that a misstep or two could put you in serious financial peril. 

How to ask is easy - you just ask. If I were the neighbor, I would say no, unless you agreed to maintain the sewer line on my property in perpetuity (legally, as a condition of granting of an easement). I wouldn't want to have to maintain my sewer line at my cost accepting sewage from your property. 

Other than that, it's pretty simple. You get it surveyed and recorded and it becomes part of the property covenants. 

Depending on what my income was I would probably cash out the IRA for that type of deal. That is good cash flow. Is it possible to borrow from your IRA? Then you borrow, purchase the property, then do a cash out refinance of the house and repay the IRA. No tax hit, still leaves you with $400 give or take on cash flow. How about accessing equity in your primary home?

I think that's a pretty small margin considering the purchase price & rent of the home. A vacancy of more than a month would put you negative. How much access to capital do you have outside of the property? Can you afford to carry a negative cash flow for several months if necessary? 

I provide starter filters, usually a 3 pack. After that it is the tenant's responsibility.

I assume you then withdrew your offer? 

It is easier if you can manage to get 1-2 properties free and clear. Then you combine assets (rental income, money saved from working, etc) with a cash-out refinance of one of the clear houses to buy the next house clear. Rinse and repeat. 

How do you get the first house free and clear? Well, if you have equity in the house you live in, that's one way. Saving a big chunk of money from working. Find a private investor willing to lend you cash. Getting started is the hard part, and if you haven't been in the game long it will be difficult to find banks willing to continue to finance as you will be highly leveraged without much cushion. 

Danger Will Robinson! I *would not* buy with friends or family. Either they invest in you, or you in them, with clear terms. Otherwise you will end up with a lot less friends and more enemies. As for your questions, that all depends on what you structure with the seller.

I would walk. You allowed yourself to be bamboozled into paying more money. Your discomfort is your gut telling you that you were bamboozled. Let them sell it to the supposed higher offers.