All Forum Posts by: Walter Key

I've not purchased there but I've looked into it (years ago) and it's definitely something I'd love to do some day. Please update this thread when you return. I'd love to hear your opinions after the visit.

You're not analyzing wrong. The numbers just don't work. You need to figure out if you can 1) cut your expenses or 2) offer less on the property. Otherwise, it doesn't look like a good deal. Your expenses are well over 50% of your rent.

Epic win!

Cut your losses. Evict them and hold the security deposit for past-due rent. DON'T spend it, just hold it in escrow minus any repair costs. Then, prepare to take them to small claims court to recoup your back rent. Keep every e-mail, every reply, every check stub (if applicable), etc etc. 

@Alex Paul Having a little bit clearer picture here would help. How negative is the cashflow? Is it negative after you factor in Property Management, CAPEX, Maintenance, etc or negative just looking at PITI and rent amount?

If it's just a little negative after taking into consideration all the properly planned expenses, then I'd say go ahead and hold onto if you expect to be able to REFI in 3-5 years and create decent positive cash flow.

Lesson learned...work over the holiday and snatch up the great deals being missed while everyone else is relaxing.

I agree with Austin. Explain that fair market rent is a few hundred more than what they're paying. Then, ask them to sign a 1 year lease at $100 above current rent. If they don't want to, you should have no issues finding a new tenant for that price or more.

Wow! 13 months. That's one long flip. But it looks like it paid off big time. Congrats!!

To the OP, how long have you been in the military? The DoD just recently announced a change to military retirement and depending on how long you've been in, you may have the option to use the new retirement system, which WILL include a matching TSP contribution.

As to the original question, TSP is a great program with lots to offer. Whether you should focus on real estate instead of your TSP is entirely up to you. But if you've got the option financially, I'd recommend maxing out your annual TSP contribution AND investing in real estate at the same time.

As long as you and your friends are not terrorists, don't sweat it. ANY transfer over $3,000 (US or Internationally based) requires a US Bank to file a SAR form. Your account might be looked at. If so, it will be transparent to you.