All Forum Posts by: Mark Kelley

@Tommy F. thanks for the detailed explanation and good points. I see the benefits of both, so I do both. I figure doing both will give me options in 15 & 17 years when the kids head to college, depending on the state of the real estate market, stock market, interest rates. tax rates and a host of other considerations. 

Hey @Mickey Kropf. It's been a while since TSF. Hope everything is going well for you and Andrew. Looks like you all are getting traction at Rented.com. That's great!

To @Richard Chan's original question, I have made and atill make many mistakes. Here's one specific mistake i wish someone helped me avoid. I used to think that having tenants sign longer leases (2+ years) were better than shorter ones (1 year or m2m) to minimize turnover and vacancy, but that's not necessarily the case. I got wed to a couple pesky tenant in long leases. Not only was it annoying with trivial tenant requests and constantly resetting expectations, but it limited my options.

Also, this points to mistakes I made around poor tenant screening and rushing to get a tenant placed. Like I said, a lot of mistakes.

Hey @Tommy F.. Could you elaborate on your 529 comment? I'm putting money away each month for our little ones, and I judged the 529 to be a good vehicle to earn market returns without tax on reinvested dividends or capital gains taxes on earnings at withdrawal. I think NC stopped their state tax deduction, which is too bad. It still seems like a good deal. Am I missing something key? What's the strategy with using investment property to pay for college with a rental? Sell it four for years of tuition and expenses?

Hi @Alex Schafler III. Good for you for having the ambition to invest. Start by getting your income up. Get out of the kitchen and start waiting tables. Bartend. Deliver pizzas. Whatever. You don't have to get a job in the physics field to get your income up in the short term. I'm sure there are some food service industry jobs In which you could earn $40k+ a year if you are putting in the hours while looking for a physics job. Once you've got more income rolling in and more savings then maybe it makes sense to get that first property. 

- Just updated this when I Re-read last post and saw that you have 9k in savings. Good for you for saving that much on your current income. 

Got it @Vincent Buggs. I haven't the knowledge to help you choose between these two options, so I'm out. Good luck with the decision and purchase. 

Hi @Vincent Buggs, why are the 401k or HELOC the only two options you are considering? Have you considered other options, like saving up some money for downpayment?

My goal is to take a one year sabbatical every 5 years during my career for an epic adventure.

I'm currently making that goal happen. I'm out on a one year sabbatical with my wife and two small children, traveling the US in a vintage Airstream visiting national parks and other places.

I've thru-hiked the Appalachian Trail and cycled across America, and in the future I'm aiming to one day paddle the length of the Danube River and sail around the Americas. 

I enjoy my career in tech, and I'll likely always be a part time real estate investor. My real estate investments though help keep cash flowing and wealth growing while I'm working and adventuring. I plan to slowly grow my real estate holdings to fund bigger, badder adventures and give me more financial flexibility to pursue the riskier, big idea startup ventures in the future. 

The crawl spaces in my houses in Raleigh area have louvres. I don't know what they do exactly, but I was told to keep these louvres open and unobstructed to allow air flow to prevent moisture issues. 

@Account Closed thanks for sharing the perspective. 

I imagine this problem extends decades, maybe centuries, into the past. To Sue's point, why does the current mode persist? Are there progressive models out there that align goals and make the relationship more of a partnership, sharing risk and reward?