All Forum Posts by: Anthony Gayden

In my opinion, no it isn't worth it. 

You already have a degree (in Political Science, not exactly the most useful area) and now you want to dedicate more of your time getting another degree in an area where you don't even want to work?!?!?!?!

I wish. I have mortgages through 4 different lenders right now, so it is a pain in the butt. I also don't like having them on auto-pay since I routinely pay the mortgages at different times throughout the month as the rent checks come in. 

Still, the amount of hassle to pay my mortgages is relatively small.

In my opinion you should postpone adding more to your Roth until you pay off the student loan. I also believe you shouldn't buy a house until the student loan is paid.

How much do you owe?

You need to increase the value of your triplex then you can get that money through selling, refinancing, getting a home equity loan, or obtaining a line of credit. 

If there is no way to add value immediately then you have to wait for debt pay down and appreciation. While you are waiting you can save money too.

@Samuel Iwu

What is better?

1. Making $160,000 with a $45,000 investment ($150k in appreciation and $10k in debt pay down)

OR

2. Making $150,000 with a $179,000 investment (appreciation on a cash purchase with $179,000)

Even with the higher cash flow from an all cash purchase, it isn’t even close. The individual rate of return is far higher using leverage.

@Justin Lee

Look at owner occupied loans. I have bought three properties with 5% down or less. I live in them for 1-2 years then rent them out.

This post is obviously not serious, so i am not going to provide a serious response.

YES. Sell your house now. I suggest you also buy silver coins and guns. If the economy collapses you will have something worth trading.

@Susan Cochran

It could cost a fortune to get the smell of smoke out of a house. The general condition of the house is irrelevant. 

I guarantee that I would have taken your security deposit as well and I would show you a detailed explanation of the cleaning, painting, and carpet replacement costs associated with a smoke.

I personally have used owner occupied mortgages to purchase 3 properties, two of which are currently rentals. The first one was FHA and I lived in it for nearly a year. The second one was conventional with 5% down and I lived there for two years. The third I have lived in just over a year and plan on turning it into a rental next year.

This is acceptable from what I have seen, which is why I keep doing it.

@Jay Hinrichs

I agree with your assessment on the BRRRR process. I did it one time and it was difficult to make work and it was slow. I honestly would rather skip the rehab and refinance part.