All Forum Posts by: Jessie Dillon

when you say 'approaching retirement,' how long are we talking? one option would be using it to BRRRR enough properties to generate the desired amount of monthly profit in the end. as far as cash vs down payment, if you want to build more wealth over time, i would definitely use debt so that you can buy 'more' ($) real estate. leaving it in index funds isn't a BAD idea, but if you have the resources (time/knowledge) to invest in RE & do it wisely, you will likely come out so much farther ahead. another question here is, how much monthly income are you looking for this nest egg to generate in retirement?

1 Vote

i was going to suggest a lease option! a 2y term. it doesn't have to be structured in a way where you're making a quick buck off her or anything, but the terms should make sense for both of you!

1 Vote

i'd do a lease addendum adding the new roomie, for the 3 existing tenants to sign, and have the new tenant also sign a new lease packet. you want to be sure they're on board with all the terms of the lease that the others agreed to. :)

0 Votes

@George Voutsinos @Zachary Ware thanks guys!

0 Votes

Chicago, Illinois

@Melanie P. thank you again for your inspiring contribution melanie, god bless!

0 Votes

Chicago, Illinois

@Andrea Evans if you have enough equity to refi your current loan into a conventional loan, you don't need the justification part, you can just do your refi to conventional & then go get a new fha loan!

0 Votes

@Joel Oh i'd think just OFFERING this to every guest for a fee that makes sense for YOU would warrant the write-off, but again partner with a cpa who specializes in REI to be sure!

0 Votes

Quote from @Joel Oh:

Quote from @Jessie Dillon:

this would be a great question for a cpa who really specializes in real estate investing or small business! i feel like your cpa should have been able to provide you with better information than that on how to use this potential deduction properly. i use @beachwoodbuyshouses on IG and she's insanely knowledgeable on how things like this can work for each individual!

That is great! STR is still so brand new, that I find a lot of CPAs and lawyers don't know well about it. There are just not many records to reference it and the law changes so often. I think this is what causing everyone confused about everything in this industry!!

do you live by your STR and offer a private car service to guests for an additional fee?...

0 Votes

Quote from @Kevin Vasquez:

Quote from @Jessie Dillon:

great question! i'd take the 3 'more expensive up front' options, for each one list the difference in closing costs between that option & the 'cheapest up front' option, then compare your cash-on-cash return for each for the initial additional investment vs. the saved interest in year one. that would give you a starting point for if the extra investment up front is worth it or not per whatever your normal desired COCR is for any investment. but another thing to consider is, how long is the rate fixed for? do you think rates will go down eventually and you'd be able to refi out within a few years to a 'cheaper' loan product? this is to say like.. how long do you plan on being in this loan product, because if it's not very long, maybe it's not worth it to buy down. but if you're planning on staying in it long term, the return on investment will absolutely be there by buying down your rate. hope this helps!

Thanks for this! I do plan on keeping this long term and my understanding is I can always refi it into another loan. When I compared the COCR it doesnt seem much, for ex, its about roughly a $100 difference between buying any points down vs not buying down. so it doesnt seem worth it in my opinion and Id rather get more money back up front. Am I understanding this all correctly or am I missing something?

yeah so like, let's do the most expensive option vs. the cheapest: it'd be an extra $3488 at closing, but you'd save $82/mo ($984-ish for the first year). that's a 28% COCR, which most REIs would drool over! and if you then consider the money saved in year 2, 3, 4, etc... that's pretty good. but again, if you go and refi out of this in 4-5 years, you'll just have pretty much broken even with making that extra investment up front. if the rate is fixed for 10+ years and you'd wanna stay in it that long, like you don't feel like you'll be able to get a good enough refi option in that time to get out of this loan for a lower rate elsewhere.. then i'd probably do it.

0 Votes

Tampa, Florida

this woman i know from facebook, marielle, might be able to help! she buys in portugal. her ig is @powerhousewomenrei

1 Vote

All Forum Posts by: Jessie Dillon

Jessie Dillon has started 12 posts and replied 304 times.

Post: What to do with $1,000,000.00?

Post: Trying to sell home to tenant with no financial history

Post: Process for adding a roommate

Post: 6 months into value-add 13-unit project!

Post: 6 months into value-add 13-unit project!

Post: Can I Do This??

Post: Write off luxury car under STRs?

Post: Write off luxury car under STRs?

Post: Acquiring a DCSR loan and needing help picking a scenario

Post: Spain Property Mortgage