All Forum Posts by: Mario Gonzalez

Quote from @Nicholas L.:

@Mario Gonzalez

just to chime in again and then i'll stop... selling off hundreds of thousands in stock to buy a random OOS rental that you would most likely just lose money on makes zero sense.

good luck

What should my strategy be if my main goal is cash flow?

Should I buy a 2 fam and house hack but won't ever cash flow even moving out since I live in North jersey and property taxes are 13.5k and up. 

Trying to see what's the best path forward 

Quote from @David Krulac:

@Mario Gonzalez  I started with house hack in PA, and told that story in Bigger Pockets Podcast #82.  I bought a 3 br ranch house that was 17 years old at an auction from the state.  I rented out 1 or 2 bedrooms largely to people who worked at the same place as me.  Most of the time both extra bedrooms were rented and that covered my entire mortgage as well as 2/3 of the utilities.  They were rented on verbal leases with no long term commitment, but there was always a demand for rooms.  Some of the people stayed long term more than a couple of years.

Then the second property I bought was a 3 unit apartment building which also led to buying the 2 unit next door.

One other strategy you might use is to buy real estate within your Roth IRA or your Roth 401K and then all profit from rents and capital gains would be tax free.

Hey love to hear that. Yeah I have around 100k plus in my roth ira right now and 525k in brokerage and rest in 401k


I would be only comfortable selling max 200k to 250k for a down payment. Working with numbers now to see if it's worth it since it has to be a out of state rental

Quote from @Greg Scott:

Tough love. I'm not a fan of your strategy.   Take some money out and do it right.

BTW, please don't focus on a $50K house.  You will probably have bought in the worst part of town and your experience will be a nightmare.

 Yeah sorry was using voice to text

the max PP I'm okay with starting is under 450k 

2 units or a single with a ADU or a lot buy and build new construction maybe? But seems I gotta sell to get capital to start

Quote from @Greg Scott:

What is your aversion to selling off some of the VTSAX and using it to invest in real estate? That is the easiest and simplest way to get going.  If you are willing to buy out of state, you should only need to liquidate a small portion.

I'm not afraid of debt, and have tons of mortgage debt.  Taking out a margin loan on a brokerage account is not what I would consider to be prudent debt, because in a down market, the brokerage can force you to liquidate at the worst possible time.

To be honest right now, I don't wanna sell just because I rather hold onto it because with my current strategy. I'm seeing large games of course. Because the economy the mark has been doing well over the past few years. But I would like to diversify without sacrificing any of my holdings to purchase real estate. However, I do have a rough iray with enough capital for a downpayment with a Max purchase price for 50 considering dcsr loan 80% LTV

I'm 32 years old, earning an $85K salary, and currently living at home. My net worth is $955K, with all but $3.5K invested in VTSAX across both retirement and non-retirement accounts. I'm close to reaching my $1M goal and maxing out my 401(k). Right now, I'm focused on increasing my emergency fund and cash reserves.

I'm exploring ways to leverage my index fund investments at Vanguard to acquire rental properties. My target is an 8–10% cash-on-cash return, and I'm considering marginal loans and DCR loans. Are there viable strategies for purchasing rental properties without having to liquidate my holdings

I hit 1mm one month ago at the highest of the market. 

I don't mind staying the course I'm currently in. It's working however I do want some exposure to real estate. And that could mean a primary residence of a duplex house, hacking or even a rental property in the nearby state of Pennsylvania. I live in an expensive state, New Jersey, which I'm not sure if it's worth acquiring any properties in this state. would like to plan now to acquire in the future. 

Quote from @Rodney Sums:

Quote from @Mario Gonzalez:

im 29 yr old and living at home with 100k to invest. i want to move out but don't need to. i run my numbers on a HH in NNJ and seem to show neg cash flow around 800 per month once I move out. i plan to put down 15% FHA, I know I can put less down but want to put more down.

i want to aim for a small cash flow after all cost has been covered including CAPEX repairs pm etc.

out of state rental adds extra layers of risk which I'm 50/50 on doing. i can either

1. stay put and invest out of state single fam for Airbnb or LTR. 

2. Buy a 2 unit in bergen or Passaic county and just pay out 800 a month which is less than 1bd apartment rent + cost 2.2k 

3. get a remote job and move to a cheaper state to HH. 

I invest most funds into index funds and retirement accounts. What should I do? i do run numbers on every new home that gets to market and just seems to be 700 to 1200 out of pocket per month. 

i am just trying to buy a place that would make financial sense. 

i make 60k to 90k a year, have no debt, and bills are less than 450 a month. 

 If you can work remote and find your local market challenging to invest in with your budget and goals consider moving to a market that will produce the results you want. 

 yeah i am applying for remote roles now but wan to see overall whats the best move to make. i just look back on personalcapital app and I had 

2018 funds to invest 63k

2019 134k

2020 205k 

I could of HH a 2 unit per year its eating me up inside I just left it sitting in cash 

im 29 yr old and living at home with 100k to invest. i want to move out but don't need to. i run my numbers on a HH in NNJ and seem to show neg cash flow around 800 per month once I move out. i plan to put down 15% FHA, I know I can put less down but want to put more down.

i want to aim for a small cash flow after all cost has been covered including CAPEX repairs pm etc.

out of state rental adds extra layers of risk which I'm 50/50 on doing. i can either

1. stay put and invest out of state single fam for Airbnb or LTR. 

2. Buy a 2 unit in bergen or Passaic county and just pay out 800 a month which is less than 1bd apartment rent + cost 2.2k 

3. get a remote job and move to a cheaper state to HH. 

I invest most funds into index funds and retirement accounts. What should I do? i do run numbers on every new home that gets to market and just seems to be 700 to 1200 out of pocket per month. 

i am just trying to buy a place that would make financial sense. 

i make 60k to 90k a year, have no debt, and bills are less than 450 a month. 

Quote from @Kevin P.:

Mario, anywhere where the taxes are $14,000 a year does not sound like a rental market. Although there are many places around that rent for higher prices I limit myself to those $2,500 or less per month. Those are not with the taxes that you're talking about. Generally they're $8,000 or less. These are just better rental markets. It's also more reasonable if for some reason the tenant is not paying. Ideally I buy around $250,000 with an after repair value of around $325,000. At this time it's harder to find a deal like that but I can find something close to it. Then I refinance and do it again. I barely even think about the interest rate. It's just one factor. In this time of rising interest rates the current rates are going to look pretty good next year. Think of it as a hedge against inflation for all that capital you've saved. Good luck.

 Where in NJ ? Im guessing south jersey no? Im talking about house hacking a primary. NJ for a rental i feel isnt good since the state favors tenants and deals are very hard to find which is why im looking to go out of state for a rental or 2 instead of buying a primary for a house hack in north jersey 

Right now I'm trying to see the pros & cons of investing in NC vs PA 

never been to NC but research shows it's going to have major growth and PA doesn't really but it's closer to me. i wanna buy a single fam turn key in a growing safe area, either buy it in my name or LLC

20% down financing looking for 3 to 6% cocr after 25% PITI to include repairs capex etc

I feel stuck on which to focus, I'm in a long-term investing mind set so trying to see from an OOS investor standpoint which market makes more sense for 1st-time property somewhere further or closer.

NC has more growth but PA doesn't so there is that

Quote from @Sean McDonnell:

Did you mean 30% Cash on cash return? There are many properties here in NC that are on the market that will give you a 3% cash on cash return after management fees. 

 Im hoping so the only concern i have is NC is much further then PA and this would be my 1st real estate deal. So im wondering if closer is better or further