All Forum Posts by: Anthony Gayden

I’m not sure what is risky here. I’ve owned my primary residence for only 4 years and have 150k in equity in it. I moved some of that equity in the form of a heloc to an investment property that cash flows. 

My grandfather wants to give me inheritance early. I don’t want to trigger a large deposit into my bank account during the loan process from him, so can he just pay my heloc directly is all I’m asking. Does the lender see a large payment on my heloc the same way it sees a large deposit into bank account? 

My heloc is not maxed out, my equity is not completely drawn and there are no loans or refinances on my investment property. Had my grandfather not stepped up saying he wanted to do this, I wouldn’t even be looking at another property. 

Thanks for the advice regarding gift money as cash reserves and seasoning. I will absolutely ask my lender their specifics 

Hi guys, 

We're a young couple in our late-20s living in New York City.

No house. No car. No children. No debt. 

Combined income $220k-$280k. SO is a software engineer. I run a small Airbnb biz.    

Liquid $530k - mostly IT stocks. Entered way too late (last Nov), didn’t make any profit.

401(k) & retirement $250k

We also have two apartments in Shanghai under our names gifted by parents, but our parents collect the rents. They are more like an inheritance. 

My question is that...how would you distribute the $530k if you were in my situation?

Here are some of my ideas...First of all, sell stocks, then...

A. Use $100k to go back to school and get another humanities/art degree (I’m a self-employed Airbnb host, won’t affect income)

B. Use $100k to start a business/non-profit related to my passion.

C. Invest $250 in ETFs that actually have a stable 5%-10% return.

D. $200k down payment a 1-bed/2-bed apartment in Brooklyn and rent it out as Airbnb.

E. Get a $300k loan from parents plus $200k savings to downpay a $1 million one-bed luxury condo in Manhattan and just live in it.

F. Same loan + savings to downpay a $1.5 million multi-family townhouse in Brooklyn/other cities and rent each unit out as Airbnb. 

G. Get out of NYC and invest in multi-family properties elsewhere. Flip or Airbnb. But WHERE???

I suppose there are many possibilities but right now I still haven't done anything except waiting for the next collapse...One thing is that we don't have "green-cards" yet, so we cannot buy co-ops. It's also harder for us to get a loan I think. Only foreigner-friendly investment can work. 

What would you do?

Hi, primary residence question. Currently have a townhouse rented and my primary residence. My PMI payment on my house is $212/month. I just had an appraisal completed and because I have only had the loan for less than 5 years I am required to have 75/25 loan to value. With that said, that's a $27k payment towards my mortgage to remove PMI. That's $2544/year that wouldn't be wasted. I have $50k saved so that would be a big hit. I could wait it out intil 2021 when I'll be at 80/20 and PMI will come off the loan anyways, but that's an $5k gone to nothing.

Thoughts??

I’ve been saving for another investment but I don’t currently have anything available in my area. Not sure if it’s worth to spend the money. Thanks for your help!

Howdy! 

Looking into getting into REI and have been looking at different systems and vehicles to get me there. We don't have any huge goals of owning 1,000+ units or raking in millions a month. Our goal is just to replace our monthly income of roughly $10,000/month passively within the next 10 years. That's it! 

Looking into ways to do this conservatively and one of the methods that really stood out to me was buying a MFH (2-4 units), paying it off, then taking the full rent + savings from our FT jobs and snowballing the same process over and over until our goals are reached. 

Averaging the rents around $700/unit in our area, that would only take 15 units to be fully paid off to achieve $10,000/monthly passive income. We have a decent amount of income since we've reduced our mortgage, auto loans, and adjusted our budget to live significantly below our means. This is definitely achievable in 10 years if we buy 3 quadplexes and a triplex, or 8 duplexes, etc.

I know this isn't the normal investing kind of plan I see out there but this is how we could leverage REI to meet our specific goals to reach financial freedom.

I'd like to ask the seasoned veterans here if there is anything inherently wrong with this plan? Is there anything else I should know about before setting this as "the plan." I don't see this kind of plan talked about very often or at all. Most everyone is looking into BRRRR and other types of trade-up systems.

@Elizabeth Susan Ademi, seems like a lot of “Negative Nancies” telling you to talk your wife out of pursuing her dream. In your situation I’d personally do the same as they advise,.... I’m debt averse.

However, a $300k loan is (guessing) about $2500/mo (for 20 years). It's NOT difficult to generate that amount of income thru REI and then when the loan payment is offset by rental income you will be grateful.

I’m still looking for my first property and the ones I keep coming across that seem to make sense at face value all seem to be buy “as-is” or “buyer responsible for xyz” type homes. Is something I should consider but not deter me or should I steer clear of these types of properties completely?

I am considering my very first single family dwelling rental, however i am wondering if the looming recession should scare me away?