All Forum Posts by: Nick Barlow

@David Song in my opinion the dollars status as a world currency is distorting the inflationary pressure of an increased money supply-despite more printing, demand is still very high.

Google “Dollar Milkshake Theory” by Brent Johnson for a more detailed description than I could ever provide.

Great post!

@Nikki Closser what @cj m said: I’d sell out of Seattle. As a Midwest investor, it seems as though Seattle was the epicenter of the rent strike movement to me.

Good luck!

@Curtis Robbins I’m glad you started this post! Not only am I thinking of the same thing, I’m in Indiana and every one replying is too!

Thanks @Joseph Robele and @Jaron Walling

@Drew Lamb I have taken a 401(k) loan before, have no regrets, and would do it again. The biggest critique I feel like I’ve heard is that you’re using after tax dollars to repay pre tax dollars.

I felt fine doing that- accessing money now rather than 3 decades later, and the interest charge goes to me.

In my perspective, it’s another line to access capital.

@JC Leach I’ve been in those shoes and decided to go for it. I can’t say I regretted it then, but I can say that all of a sudden I realized just how old some of the water heaters and furnaces in the rest of the portfolio are. I noticed that I cared more when Smaller maintenance issues came up, and also wanted to build back those reserves way more quickly than the added Cashflow allowed. I also felt more stress after the deal than I thought I would.

If you have to come out of pocket to cover an unexpected emergency...like wave 2 of COVID lockdowns leaving units empty for 60-90 days...or the threat of future job insecurity rising...and can stomach that, don’t let me or any stranger on the internet stop you.

I am not even considering touching reserves for anything other that purpose right now, but that is me, and what’s right for me isn’t right for you.

Good luck on your journey!

@Dave E. You get her interested by sharing some results now.

Use some of that Cashflow (after accounting for all the standard things PITI maintenance, vacancy, capex etc) and take her to a romantic dinner.

Next year, use some proceeds for a vacation-maybe only a weekend getaway, whatever tje CF can support.

Be transparent that the rentals are paying for it. You’ll have to work with your tax professional how you reimburse yourself, but my 2 cents are make the benefits tangible to her.

If it doesn’t sway her opinion, you still get some quality time with her, so I’d say it’s a win/win.

@Wade G. as you can see we all have different thoughts on this. My two cents are that lifestyle design should dictate your (or anyone’s actions) in this regard.

If you want to grow, use leverage. If you’re portfolio is as big as it needs to be, increasing rents and increasingly paid off mortgages across the portfolio will only increase Cashflow overtime.

“Coach” @Chad Carson has a really good description of this on his blog. I would recommend taking a look: www. coachcarson.com

Make the decision that’s best for you

@Mike Paisley congrats on that achievement! Take a 401(k) loan on a day when the market rallies. combine that with your savings for a down payment and go owner occupy that duplex/house hack.

Then do another owner occupied house hack again in the next 2-3 years.

@Joel Paolo it depends on how much reserves, and the time to get it done, in my opinion. If you’re low on reserves and time, try shampooing. If you’re high in reserves, I would go straight to vinyl flooring. Time is a consideration for both you or your contractor/installation team.

I use vinyl in every unit once the carpet wears out, and for me, I would personally go to vinyl now in your situation if that were me, but only you can decide if it’s best for you.

Good luck!

@Noah Gregory March and April-no. Got my only vacancy filled on May 1st. Usually takes 2-3 weeks to fill. This time was almost 7 weeks.

I hope the worst is now behind us, but next two weeks will be really telling.

Good luck!