Investment Property or P-car?
02-10-2019, 05:53 PM
#16
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This is spot on advice. I just bought my first 911 less than 2 weeks ago and never would have done so without having some RE investments first. YMMV.
02-10-2019, 05:56 PM
#17
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What would Dave Ramsey say.
02-10-2019, 07:05 PM
#18
19 years ago at the tender age of 31, wife was 27, we purchased a vacation property on the water, 100 miles from home. Based on the equity of the property, every beer that I have drank there, every gallon of gas I have put in the ski boat, every renovation, every property tax bill or electricity bill has been paid for by the equity increase. Property was $110k in 2000. Easily worth $300k today. Between toys (boats, atv’s, tractor, tools) and renovations (gutted the interior and redid outside and all mechanicals), I figure I am in for $150k. So I am still up at least $40k.
That being said, would I have saved up $300 over the last 19 years? Yes, I am certain of it. I was able to build my equity while fishing, hunting, water skiing, entertaining. We actually spend about 90 nights there per year. The city house is just that a house. We consider our vacation property our real home. You just can’t beat that deal. I saved $200k over 19 years by drinking beer!
That being said, would I have saved up $300 over the last 19 years? Yes, I am certain of it. I was able to build my equity while fishing, hunting, water skiing, entertaining. We actually spend about 90 nights there per year. The city house is just that a house. We consider our vacation property our real home. You just can’t beat that deal. I saved $200k over 19 years by drinking beer!
02-10-2019, 07:25 PM
#19
Three Wheelin'
IMO Dave Ramsey is only good for people struggling who need to get out of debt and this is beyond this scope. A lot of people are giving the advice that OP should purchase the rental property but without more info, this is poor advice. If it costs the OP their savings they are one disaster away from bankruptcy.
02-10-2019, 08:35 PM
#20
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Originally Posted by motoo344
IMO Dave Ramsey is only good for people struggling who need to get out of debt and this is beyond this scope.
02-10-2019, 08:48 PM
#21
Three Wheelin'
Most of what he talks about is helping people get out of debt and I happen to disagree with him in some of those areas. In fact, I would wager to say unless OP has maxed out his retirement options and has no debt an investment property would not be on the table according to Ramsey.
02-10-2019, 11:56 PM
#23
Race Director
You can easily make a $1,000/month with zero risk with today's interest rates. One of my credit union accounts is already a tick over 2.1% and going up slightly each month.
Hopefully your work 401K/Roth 401K is fully funded ($18K) and your self directed IRA (another $6K) too. I assume you're under 50 y.o.
*check my numbers, they may be off for 401/IRA by $500.
Hopefully your work 401K/Roth 401K is fully funded ($18K) and your self directed IRA (another $6K) too. I assume you're under 50 y.o.
*check my numbers, they may be off for 401/IRA by $500.
Also, assuming op is not in his 50s, parking that kinda money earning 2% would be pretty poor allocation of resources.
02-11-2019, 08:23 AM
#25
"Buying a porch is stooopppid. Stooooooopid." "Before investing, I want you on Baby Step X, meaning everything you own is paid off." "Of course you're not going to finance the car - you're buying it with cash."
Dave Ramsey runs a pyramid scheme. He is a successful actor.
Dave Ramsey runs a pyramid scheme. He is a successful actor.
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02-11-2019, 08:26 AM
#26
Without more details I think you're right...the OP is thinking about dropping 25-30k on a used 911 vs financing a single family home to be used as a rental. Both would wipe out savings. If that's the case, I suggest financing the car and keep your cash...save up more then get finance a real estate deal in 1-2 years.
02-11-2019, 08:35 AM
#27
+1 Property.
As other said, account for un-occupied time ($ you have to spend between renters where you have to pay for paying for mortgage, utilities, maintenance, repairs, etc). If your really profiting $1K/per month, then a couple months in reserves.
Then next tax season, re-evaluate your situation. You will be pleasantly surprised.
As other said, account for un-occupied time ($ you have to spend between renters where you have to pay for paying for mortgage, utilities, maintenance, repairs, etc). If your really profiting $1K/per month, then a couple months in reserves.
Then next tax season, re-evaluate your situation. You will be pleasantly surprised.
02-11-2019, 08:39 AM
#28
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Make sure you read the Renter From Hell thread in the OT Forum.
02-11-2019, 11:28 AM
#29
Rennlist Member
You're coming to a internet car forum to ask for financial advice? Hmmm... Big mistake. Go speak with your wife, your accountant, and your financial adviser - If you've done that already and don't like the answer, do it again! My hunch is that you already know the right answer, but you figured you'd come here to get the answer you wanted... So, go ahead - BUY THE PORSCHE ! 
Feel better?
Feel better?
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02-11-2019, 11:36 AM
#30
Rennlist Member
You only die once, get the Porsche!
One bad renter will ruin your year...Ask me how I know.
In all seriousness, this is not the place to get your answer. There is a lot of information that needs to be considered when investing. I did well with most of my real estate investments except one!
One bad renter will ruin your year...Ask me how I know.
In all seriousness, this is not the place to get your answer. There is a lot of information that needs to be considered when investing. I did well with most of my real estate investments except one!
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