All Forum Posts by: Tommy F.

Heston Beacco Anything is possible and there are lots of amazing success stories on BP - I love 'em all. There are also lots of untold stories of slow, steady, persistent and patient wealth building. You're asking for suggestions, so I have one you may not expect, just take it in stride. You're 22, without a job, and wanting to get into debt to purchase a property that may cash flow $200 - $500 per month. You need cash reserves 5%+/- to maintain the long term hold for emergencies plus the credit union will likely require 6 months of mortgage payments in reserves. Not trying to nix your RE hopes and dreams, but I'd suggest a few years in the military. Seriously. You can get your finances in order, earn a VA loan benefit, earn GI Bill benefits to include a lucrative housing allowance if you go to college after service. Lots of other perks. It's not for everyone, I know, but it can get you squared-away and on a path. Just my two cents. Best of luck. Semper Fi

Michael, you need jobs in the area to support your rental. Twenty-nine Palms is a very low population town with a Marine Corps base. Are you hoping to rent to Marine families? If so, is there demand for offbase housing? Rough neighborhood likely not a worry for a single Marine, but not a place to leave your family when on duty or deployed. Have you considered other locations?

Michael M. You dont need a RE license to learn REI. You can learn for free or a nominal amount of money. Plenty of books available for cheap. If you can do basic math you're fine. Go to irs.gov and download Publication 527 Residential Rental Property - it's free. Cash flowing So.Cal. presents challenges. I was in Gardena and Fullerton recently and couldn't believe what $400k buys in those areas. Much more bang for your buck out of state. No kids offers you a better opportunity to house hack. Find a roommate if you can tolerate it. Save some money. Finally, which comes first: owning your primary residence or owning cash flowing rental property?

Read your contract and make sure you get paid any late fees collected. Otherwise, there's less incentive to ensure YOU get paid on time if the property manager gets to keep late fees every couple of months or more. If they argue they put more effort in and should get paid late fees then agree to split it.

Just re-read my post, I typed hard money lender, but intended to say private lender, there is a difference. You did a flip so I'm guessing you've used hard money lender. Either way, I trust you get my point. Good luck

Are you getting a basic housing allowance based on E5 with dependents for your zip code? You said you're renting an apartment, can you get someone split the rent with you and save some more money? Please correct me if I'm wrong but the BAH is paid at the stated rate regardless if that is the actual cost of your housing so try to reduce your actual housing expenses and pocket the difference. If possible, get a part-time or full-time job, if you can do it and carry 12 sem hour load, in order to get stable income to qualify for a mortgage. Try to find a seller finance deal. Maybe a hard money lender will consider your BAH and disability payments as income. If so, you may have a higher interest rate and may require larger down payment, but if you're house hacking you may be able to pull it off. Maybe you consider a lower cost single family house, and assuming a hard money lender will underwrite a loan, with your downpayment, BAH, and a roommate, you can be on your way.

Sounds like a great problem to have. When is enough, enough? As in, when is cash flow enough or keep going? I'm not there, so I'll leverage until I get there.

Buy and use 30 yr fixed mortgage. But, that works for me in my life circumstances. What works for you? Lots of rules of thumb abound and the 'your house is not an asset mantra'. I get it. Do the math and the math will tell you what to as one podcaster often says. If you buy your primary and for whatever reason need to move, you can convert it to rental property. Consider it low or no money down investment property.

Thanks everyone for the Free entertainment as I sit in a tire store lobby waiting for my truck.

Wrily Plenty of free knowledge on BP and internet in general. Use some of your college elective credits to take a real estate course and do two things at once; learn and earn credit. Tommy