All Forum Posts by: Glenna Wood

In any beach market, your gross vary greatly on how close you are to oceanfront. I've been much happier and made more $$ through the years with my FL rentals because OBX is a only seasonal market. The money weeks are Memorial Day to Labor Day with a few shoulder weeks. The vast majority sit empty fall to spring. Since COVID prices have soared and inventory is very tight. In recent chats with realtor contacts a very general rule is a good rental will gross 10% of its price. An "average" 5 BR with pool and hot tub with best beach access will gross $100k. With COVID some rental homes have been turned into second homes and are out of the market. If you check rental company calendars, bookings are very strong for this year. Usually you can't see the rates once booked but if they list the range on the house it shows you the rates for prime (midJune to midAug) vs off season weeks. So you can develop your own idea. If you want OBX because you love it and will get personal enjoyment from it, then buy with the idea that it helps pay the mortgage. For a pure investment, I would head much further south. Best wishes.

You have lots of moving parts to balance. Generally pay off the highest rate debt first. Sounds like you own your home? If you've been there more than two years, see if it makes sense to sell and get into an owner occupied duplex or quad if your rental market is healthy. Use an FHA loan for a lower down payment (yes, paying PMI stinks but it gets you in the door). Be cautious not to over leverage for your rental though. You may need to get reserves built and improve your DTI before any investment is possible. Best wishes!

Not sure if Houston fits into the potential  hurricane impact area or not. Insurers don't want to touch high wind storm areas so the two states I'm familiar with (FL and NC) have state supported insurance pools for high risk wind damage areas. These plans cover primary homes and rentals with both hazard and wind coverage. Since it sounds like your property is owner occupied first (it's still your residence when you travel for work), have you gotten quotes as your residence and then added the rental use for the ADUs and part time your main home? 

Tough situation in today's world. I worked for years in DoD locations where personal cell use and email access was restricted. Just use a PM and pony up the extra fee as an additional expense. 

Haven't been there in about 20 years. It's on a pretty remote stretch of coast southwest of Tallahassee. Not as desirable as St George Island but there have been vacation rentals there for years. Not much to do in the area besides the beach and the nearest towns are tiny so entertainment and shopping is pretty limited. Look for web pages for PMs in Carrabelle and St George Island to get an idea of the properties there. As you already know, most people have never heard of it. Franklin County is largely National Forest so the property tax rates are pretty high compared to surrounding counties. You can likely turn a profit but doubt if you would "kill it". Like most of the less developed panhandle coast, labor, builders, cleaners are limited supply.

Don't forget that in a new development the builder who is the seller controls the HOA. This can change dramatically when the home owners finally take over. I echo everybody else. Parking is a big problem. Five unrelated adults sharing a kitchen is a challenge. Suggest you find a smaller, older SFH and go for fewer roommates.

Sounds to me like you'll need to reperc to satisfy this particular buyer or simply pass and wait for the next buyer. The buyer wants you to prove the risk that the land will support a larger drain field. Your realtors advice was reasonable for getting a presale, no house plan perc. You don't say the lot size or topography but generally So MD soils are not difficult if you're not near water front. If your lot is desirable enough and you hold firm, this buyer may take the risk themselves and have it reperced post sale for their specific house plan. Best wishes.

If the student loans impact your DTI so that you can't get the best terms on a loan for an income producing property, then pay them down, highest rate loans first. If not, they are cheap money overall so pay as is and focus on getting investment property. Discipline pays off! Your daughter will learn and greatly benefit from her Dad's smart money moves. Best wishes!

Save at least 10% of every paycheck with automatic withdrawal. You won't miss it. Set up an account with a major investment firm. Use their online net worth calculator and set a goal to review and increase your net worth every month. Keep your car 10 years or longer. Only put your money in appreciating assets. 

When I retired from Federal service, I rolled my entire TSP into an IRA at Fidelity Investments. I had been with Fidelity since 1982 and wanted to keep my record keeping simple. That process cost nothing. Fidelity's online retirement planning tools are excellent. It could help you discuss with your Dad how to plan for distributions over his retirement years. Once it's in an IRA, all the normal distribution rules apply. For example, after it's rolled into an IRA, if he distributes $20k to remodel his house, he will pay the usual taxes on that $20k depending if it's a from a Roth or Traditional IRA. If he does have a Roth and Traditional TSP, it rolls into two IRAs at the new custodian. The rollover isn't a taxable event. Without knowing more details, the "30% penalty" on a TSP withdrawal doesn't make sense. Were they saying "withholding 30%" for Federal taxes if he withdrawals the entire lump sum? Have you checked the online videos and PDFs from the TSP website? Take advantage of those. Specifically the "Withdrawing Your TSP Account for Separated and Beneficiary Participants" pdf. Again, withdrawals and distributions are two very different things in retirement.

Rolling it into an IRA simply gets your savings out from under TSP administration. They do a good job. Any major financial firm can handle rollover paperwork for free. You will find that he will have more investment choices in an IRA vs the TSP choices. A financial planner can help you with that. Of course, any planner associated with a major firm is going to steer you to their firm's products. Best wishes for a happy retirement for your Dad!