All Forum Posts by: Joe P.

@Todd Rasmussen have you ever worked in an IT organization? If not, the primary function of most employees at junior and mid-range levels is to work remotely. There is hardly a need for face-to-face interaction and since our product is virtual, we can upgrade, maintain, build, break-down, etc., all virtually.

I've been working from home at about a 99% clip for the last 6+ years. It has been one of the best things to ever happen to me. I'm a stronger performer because of it. My team is entirely WFH and frankly, I think I have one of the best. I love my team and think the world of them.

I do agree that it is highly task dependent. In my line of work, we either have ticket assignments or timeboxed activities as part of a larger project plan -- if those are slipping, we know immediately, and generally we know if people are slacking off or if there are actual constraints to completing said task.

I believe you'll see more of a shift to WFH where possible, however, it'll be gradual. This pandemic certainly is opening the eyes, but this won't be the push. Rather, folks will get back to work and head into two categories over the course of several months -- the "flame isn't worth the candle" crew, who want to stay home and can accomplish their work; then of course you'll have the "so happy to be in the office" folks. If organizations are smart -- they'll evaluate key roles and determine where this person needs to be objectively, and then let the candidate of choice decide, a perk that they could offer over other organizations.

Was looking for my first house at 24, after looking at 100 properties -- no joke -- it was down to a "trendy" industrial 1 bedroom loft at 7th and Washington in Philly, and a basic 2 over 1 duplex at 18th and Wharton, also in Philly.

I went with my heart and not my head. The trendy loft sucked and it was a disaster in many ways. Meanwhile if I selected the duplex, I would have had someone paying down my mortgage in a neighborhood now known as "Point Breeze", which has been a super-appreciating neighborhood in Philly. My trendy loft never got there (at least by the time I sold). Hindsight is always 20/20...

While I appreciate what agents and attorneys do, sometimes I feel like you have to go outside them to get the non-filtered information you need. I feel like I can size someone up pretty quickly and find out what they're about. Perhaps a phone conversation just to understand his end. If he's super pushy on the phone, dismissive, a know-it-all, etc., its a good sign of what's to come.

I like to create choke points with tenants to get a feel how they react if I don't have enough information. Informal lease reviews are fantastic, for example, because it gives them a chance to respond or speak up if they have concerns. I have a tenant who asked a question and raised an issue with every. single. line. of our lease. It was a 2 hour conversation. I knew exactly what I was getting, and it has come to fruition -- but a bird in hand is worth two in the bush.

I can also agree that a owner-turned-tenant could be a nightmare. "Ozark" also comes to mind with Buddy living in the basement. I'd want to know if I'm getting first half Buddy or second half Buddy, if you've seen the show. :)

There are ways you can craft this deal to work for both of you -- I think the biggest thing is adjustment to the purchase price to accommodate the rent difference or "good deal" you're giving him. But I wouldn't do that until you've sized up him and his situation.

I don't know if there's a right answer to this question. Someone in NYC will need substantially more money than someone from Omaha Nebraska, who will need more money than someone from North Dakota. Lifestyle, family needs, etc., all weigh in, and you won't know where you'll be in 30s or 40s when you are in your 20s. I thought I would be single forever when I was in my early 20s, and now I've been married almost six years...you age/mature as a person and take on major life decisions accordingly.

Your 401k is not going to help you in retiring early due to penalties -- that money can't be touched without penalty until retirement age...which for someone in their 20s, wouldn't surprise me if 70 became the new benchmark. Roth IRA is 59.5. So, in essence, both won't help you retire in your 40s unless you put in major amounts of money, if that major money values high due to market conditions, and if your penalties are not stringent enough to pull from the income you expect to earn accordingly...a.k.a., too many IFs.

I wouldn't be concerned with a number value on how much "cash" you should have. Instead, focus on living within your means and trying to save money to invest. Some folks live in 30/40% of their take home and invest the rest -- risky, sure, but if that pays off they might be able to retire early.

I think a good way to be able to see if you can retire early is to reduce your expenses as much as possible. For me, the order of monthly spend goes something like mortgage (biggest expense), medical expenses, food, car payment, ancillary (smallest expense). Imagine if you could not pay rent or mortgage (via househacking, for example) -- you've just eliminated your biggest expense. How about eliminating a car payment? Presto...one less expense.

I, too, want to retire early. I'm focusing on padding my income via rental properties, because I know there is NO WAY my wife is going to househack. We need healthcare insurance coverage and sadly its a big part of my income. We bought a used car that has reasonable payments for the next few years, but I am paying off more principal because I can (hoping to eliminate the payment sooner). These are ALL things I never expected 10 years ago. But I love my wife, and she is on board with me investing, so my plan and my goals align with our thinking.

In closing, while I don't recommend a cash value, you may want to consider an "income goal" per month that can be obtained via a job, real estate, or investments...and then back into that number to see what it would take to get there. I want 10k a month in rental income by the time I'm 45, so if I have 20 doors with $500 cash flow per month, then conceivably I've done that.

Gosh, living with 15 college-aged women sounds like a great idea in theory, but 34-year-old Joe will have to pass. Not only because he's married, but because he can think of a million downsides that far outweigh the positives. What worries me most about the deal is the financial aspects and the property -- there's a LOT going on there.

To me, simplicity should be everyone's starting point. You have a job, a family, a social life, activities, and you want to add a major move, huge property, no experience, and a sorority into the mix?

Dude...CHILL. Find a way to nix your living expenses with deal 1. That's it. If you pay $1000 in rent today and you nix your living expenses, you can save $12,000 a year while someone else pays down your debt. If you can do better than that, great!

I know 23-year-old Joe would love to live with 15 women...in theory...he definitely isn't as smart as 34-year-old Joe, though...

It's always everyone else's fault...

Posts like this always surprise me. You're playing an investment game where folks may not have aligned goals, may not trust you, may have more important folks on their list...but yes, it's all THEM and you're doing everything perfectly. There is not one single thing you're doing wrong.

I meet folks like you all the time, and the one thing that scares me in this business are people who think they are infallible.

The risk of this business and the stories of those who fail shouldn't stop you from investing, but they should make you weary enough to think through the actions that need to be taken. I can identify 100 different mistakes I've made since I started, some self inflicted, some I'm still making today -- but knowing that I'm just as fallible as anyone else makes me want to work way harder than them, but also realize they're human just as I am. 

I don't come on here saying most of these people suck. I might think it, but the smart man closes his mouth, opens his eyes and ears, and finds the ones worth their salt. Of course, it takes two to tango...you've got to be worth the metal you're stamping.

@Michaela G. I'm pretty sure that happened to me -- I was owed like $700 dollars after I switched insurance companies on my first home and it ended up in PA unclaimed funds. Now I don't remember the call itself, but I remember thinking it was total BS initially. It took me a couple of years to actually get wind of a website for it, searched my name, and lo and behold there was the insurance money. :D

I'm pretty sure I could get a cold call of someone offering me $10,000, no strings attached, and I'm probably going to be skeptical and/or hang up. That's how much I hate cold calls.

I know this sounds crazy, but if you're seeing an owner pop up multiple times, I think you'd get more mileage out of checking out any available social media they have, trying to meet them at something they enjoy, striking up a conversation, and building a relationship (professional of course). Ok, I realize this is stalking in some form, but would work better than cold calling (for me). A letter isn't a bad idea -- handwritten or typed with a wet signature -- but still. People own homes, people sell homes -- its a people business.

Hi @Matthew Dowling, welcome, congrats on taking your first step towards buying (education).

Based on what you've said so far, I wanted to offer some advice outside of your desire to look for specific properties. That advice is one word: simplicity.

I assume you are paying rent right now, correct? Your first deal doesn't have to be a home run -- just look for a reasonably or better priced (you make money on the purchase) property where you think you can eliminate your living expense. That's it, dude. Simplicity. I can tell from the way you structured your first post here -- not to sound judgmental, but I've been on the boards long enough to know -- that you're a "wired" guy. I have the same problem. What will happen is your criteria is so specific for both finding a property, financing the property, and then executing a rehab, you're going to drive yourself crazy and either get burned out or burn out other people.

If I could go back and do it all again, the ONLY change I would make was to buy a duplex in Philly versus the SFH I bought. That's it. I would have househacked and lived for free in the smaller unit.

I'm sure helpful folks will come here and provide some insights into the market, but to me, this is a numbers game -- eliminate your living costs or get as close as you can on deal one. You'll be building equity, you'll be eliminating your major expense, and you can do it with simplicity. Then, once you've got a handle on evaluating, purchasing, repairs, tenant management, etc., you can start to hit the pavement on the next deal with more knowledge and experience. Don't bite off more than you can chew for deal one (even though I think you'll be a heavy hitter one day, start with a bunt single and work your way up).

Welcome Ben! I don't have much value to provide here, other than I saw you were in South Philly (as am I) and surprised (but also not surprised) you moved to AZ. :D

Good luck to you out in AZ. My father retired there several years ago, golfs every morning, drives for Uber, loves his life (I think)!