All Forum Posts by: Nicholas L.

@Brett Ponters

just house hack separately from your friends - no reason to try to partner or split things.  way too much complexity for when you're starting out.

@James Hamling

agree, i was oversimplifying to make a point.  i think the key difference is whether it's possible (yes) and whether it's likely (no.)  

and, buying a random property thousands of miles away solely because that market has a median lower than yours is not going to get you there.  

the days of Brandon Turner pulling up a random duplex in Alaska on Zillow and finding $400 a month in cash flow are long gone.  new investors continue to buy money pits just to "do a deal" and get crushed.

crushed:

Issues with Mold

also crushed:

Sell at a loss or rent at a loss
crushed over several years:

Experience of OOS investing in Cleveland after 1.5 years.

crushed at turnover:

$12,000 Turnover!! Is this normal for less than 3 year tenant.

crushed from across the entire country:

Baltimore - a path to never-ending pain

@Matthew Samson

understanding that you're just looking for a rough answer... i'd still find a great CPA and go ove your whole situation with them.  they will be able to provide a much more detailed answer than anyone here.

good luck!

@Tarek Belal

I'll make it easy for you - there is no cash flow anywhere right now on LTRs.

@James Hamling

i think this question has come up before, but here goes again.  i agree that the debt is unsustainable, i agree that something should be done about it, and i don't want 50% of the budget to go to interest payments every year.

with that said, though... is there a lightning strike once the debt to gdp ratio hits a certain number?  is it... 150, 175, 200?

@Corey Bogaski

is this your first deal ever, or just your first sub to deal?

i don't see how this makes any sense - putting 30K down, and overpaying for something, only to be in a long term, 3 way relationship (you, the seller and the bank?)  hard pass.

@MIchael McCUe

how volatile can what be?  i have a good amount in VNQ that I DCO'd into.  it's very volatile.  i don't know your whole situation and am not your financial advisor, so it's hard to be more specific.  but i stand by my original statement - would i put savings into something volatile?  no.  what if it goes down 40% by the time you're ready to buy?

@Ryan Duphorn

short answer - of course it is.  based on what you wrote, you're already way ahead of the game. 

you'll 'reap the benefit' as you'll be building equity in those properties no matter what you do next.

@Robert Smith

unless you're able to go to one of those markets in person, repeatedly, to build your team, i'd just invest locally.  there are so many forum posts from folks in HCOL areas that think they'll be successful solely because of the low price points in markets like those, and that can result in disaster.

hope this helps.

@MIchael McCUe

if you are saving up for a down payment i would not invest in something volatile, or illiquid

but let me know if i am missing something