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Investment Property or P-car?

 
Old 02-11-2019, 06:27 PM
  #31  
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As long as your retirement is properly funded and you have a financial cushion in the bank (ie not totally emptying your savings) and are accounting for the time and cost of managing property....and it really is a good deal (not just a good deal in the current market)...property.
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Old 02-12-2019, 12:26 AM
  #32  
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whats more likely IMS bearing failure or real estate market crapping out?
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Old 02-12-2019, 12:36 AM
  #33  
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Originally Posted by Turbodan View Post
whats more likely IMS bearing failure or real estate market crapping out?
About equal, once every 10-15 years, lol. Only difference is RE rebounds
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Old 02-12-2019, 05:24 AM
  #34  
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Well... I got outbid on our offer for this place and think I might sit out this bubble now. Stuff has gotten insanely expensive on the RE front. Back to looking for a p-car
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Old 02-13-2019, 03:38 AM
  #35  
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Originally Posted by steam_mill View Post
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, atvís, 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 canít beat that deal. I saved $200k over 19 years by drinking beer!
I LOVE hearing these stories!

Congrats!
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Old 02-13-2019, 04:06 AM
  #36  
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Originally Posted by minthral View Post


Here are reasons in a rambling order:

...
Just so many of these are wrong! That being said, your answer is ďit dependsĒ. Whatís your financial situation? Where is the property? (Location is everything). How much down? Length of mortgage? Hopefully 15 yr. How much reserve in the bank? Do you have any other debt to consider? Secure job? Experience dealing with renters? Gonna have it in a LLC? Etc etc.

Bottom line, if done right an income property is hands down better than a buying a car. But it needs to be done right. Do your research.

Iíll end in saying, if purchasing a rental will wipe you out you probably shouldnít be buying a 911 or an income property. Continue to max out your savings until the time is right to buy the RE. Itíll make buying the 911 a breeze down the line.
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Old 02-13-2019, 05:54 AM
  #37  
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Originally Posted by Bash Hat View Post


Just so many of these are wrong! That being said, your answer is ďit dependsĒ. Whatís your financial situation? Where is the property? (Location is everything). How much down? Length of mortgage? Hopefully 15 yr. How much reserve in the bank? Do you have any other debt to consider? Secure job? Experience dealing with renters? Gonna have it in a LLC? Etc etc.

Bottom line, if done right an income property is hands down better than a buying a car. But it needs to be done right. Do your research.

Iíll end in saying, if purchasing a rental will wipe you out you probably shouldnít be buying a 911 or an income property. Continue to max out your savings until the time is right to buy the RE. Itíll make buying the 911 a breeze down the line.
I agree with you, it definitely depends. I have one investment property right now that has almost doubled in value from $260 to $450K since 2013. Paid cash, no mortgage. Clear about $1K/month after tax/maintenance. No debt. No car loan. No credit card balances. Got some cash I'm sitting on, hence why I'm on this forum looking for a p-car. Looking for the right one. Looking for another property to invest in. Setting up an LLC now that I'm considering a second property. Got plenty of company stock. Secure job. We've got a property manager right now since we lived 2000 miles away but have recently moved back close to the property. Buying this rental will not wipe me out. Don't need to touch retirement accounts or sell stock. And I definitely don't live paycheck to paycheck.
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Old 02-13-2019, 09:08 AM
  #38  
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Properties helped me make a big step up in life financially. My wife and I constantly rotate 5 properties at a time now while holding our full time jobs.

Dave Ramsey.... where's the face palm emoji? I do just about EVERYTHING opposite of what he says and we are prospering just fine. His views are in the clouds and sorry for those who support him..I think his stuff is horrible and yes I have listened to him quite a bit over the years.
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Old 02-13-2019, 10:08 AM
  #39  
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Originally Posted by ttt123 View Post
Properties helped me make a big step up in life financially. My wife and I constantly rotate 5 properties at a time now while holding our full time jobs.

Dave Ramsey.... where's the face palm emoji? I do just about EVERYTHING opposite of what he says and we are prospering just fine. His views are in the clouds and sorry for those who support him..I think his stuff is horrible and yes I have listened to him quite a bit over the years.
Dave Ramsey's advice is generally intended for people without traditional financial education. The tenants of paying off debt first and foremost is excellent advise for those people with low incomes, little chance for career advancement, minimal financial knowledge, etc. For those more experienced and knowledgeable, that should perhaps be changed to consumer debt.

How can you say that paying off debt, living off less than you make, donating to charity, and saving money is horrible? If everyone did this, this country, as a whole, would be in much better shape financially. I don't agree with never using a credit card, but to his defense, the studies exist showing that, on average, people spend more when using a credit card.

Perhaps the RE price inflation has got people thinking they are infallible again...
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Old 02-13-2019, 10:33 AM
  #40  
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Originally Posted by Quadcammer View Post
Dave Ramsey's advice is generally intended for people without traditional financial education. The tenants of paying off debt first and foremost is excellent advise for those people with low incomes, little chance for career advancement, minimal financial knowledge, etc. For those more experienced and knowledgeable, that should perhaps be changed to consumer debt.

How can you say that paying off debt, living off less than you make, donating to charity, and saving money is horrible? If everyone did this, this country, as a whole, would be in much better shape financially. I don't agree with never using a credit card, but to his defense, the studies exist showing that, on average, people spend more when using a credit card.

Perhaps the RE price inflation has got people thinking they are infallible again...
Everything you said.. I am. I came from a very poor child hood literally lived on the streets in Pontiac with my mom and brother. I have no financial education other than street smarts. I was in debt and borrowed money and bought a house on land contract it grew from there.

There is debt that works for you and there is debt that hurts you. So ya paying off all debt is not always worth the empty pocket vs using that money toward growing it. Charity... I'm a youth pastor, I live my life wrapped around a desire to be closer to God and live a life HE would be happy with(still working on that one). Saving money.. again I invest it I don't set it in a bank for the bank to invest it.

Hey if Dave's strategies work for you... awesome!!! don't stop but I have die hard friends who adhere to everything he says and I here people prop him up as the model for how to be successful and it just doesn't jive for me Plus they are miserable lol I have credit cards coming out my ears, multiple mortgages and I'm doing great. But I'll admit my path might not be yours.. that's fine.

Trump doesn't buy a new tower with Trump money. Yesterday I bought a house with a hard money lenders funds(nothing out of my pocket). Already have a buyer for the house on land contract. In 8 months I'll pull an equity loan out of that house and pay him back plus 10% and have a house paid for by someone else with a little profit for me. For those who think that sounds fishy.... that's what banks, rich people, investment groups etc. do.

Nothing wrong with someone TRYING to live with Ramseys plans (you have to pay for them if you get on his website *cough*) but FOR ME... horrible, makes no sense.

Fun conversation for sure
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Old 02-13-2019, 10:40 AM
  #41  
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Originally Posted by Quadcammer View Post
Dave Ramsey's advice is generally intended for people without traditional financial education. The tenants of paying off debt first and foremost is excellent advise for those people with low incomes, little chance for career advancement, minimal financial knowledge, etc. For those more experienced and knowledgeable, that should perhaps be changed to consumer debt.

How can you say that paying off debt, living off less than you make, donating to charity, and saving money is horrible? If everyone did this, this country, as a whole, would be in much better shape financially. I don't agree with never using a credit card, but to his defense, the studies exist showing that, on average, people spend more when using a credit card.

Perhaps the RE price inflation has got people thinking they are infallible again...
Agree. 90% of what Dave says is right and good. The only thing I donít agree with is that he does want people to use the wonderful financial invention called leverage. Like any tool, one could get hurt using it. But if you know what you are doing, leverage is a small miracle. Itís all about risk tolerance.
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Old 02-13-2019, 11:14 AM
  #42  
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Originally Posted by murphyslaw1978 View Post


Agree. 90% of what Dave says is right and good. The only thing I donít agree with is that he does want people to use the wonderful financial invention called leverage. Like any tool, one could get hurt using it. But if you know what you are doing, leverage is a small miracle. Itís all about risk tolerance.
Yup, most of Dave's listeners are struggling to move on from paycheck to paycheck, not planning their 3rd or 4th rental property. Different audience, but the basic advice is sound.
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Old 02-13-2019, 12:03 PM
  #43  
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Originally Posted by Quadcammer View Post
Yup, most of Dave's listeners are struggling to move on from paycheck to paycheck, not planning their 3rd or 4th rental property. Different audience, but the basic advice is sound.
Quad, totally agree with that. that's where I was when my wife and I said the mountain of debt is just to big vs taking the $2k we had at the time from our tax returns and trying something different. His advise is sound.. its just not practical when you making $450 a week with rent payments, food, kids etc.

if you always do what you've always done you'll always get what you always got. gotta think outside the box.


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Old 02-13-2019, 12:25 PM
  #44  
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Originally Posted by Quadcammer View Post
Yup, most of Dave's listeners are struggling to move on from paycheck to paycheck, not planning their 3rd or 4th rental property. Different audience, but the basic advice is sound.
I'd suggest most of Dave's CALLERS are such. Not his actual listeners or followers. It's a talk radio call -in show. How interesting, and who would listen, if it was a bunch of rich car collectors calling in asking for advice on buying a 911 or a rental property.
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Old 02-13-2019, 12:31 PM
  #45  
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I'm going to agree with the majority here and promote investment property over Porsche, but I want to temper it a bit. I've invested in over 40 properties since 1983, most have been a very good investment deal. However, I've had 2 that went completely pear shaped. Not surprising, those two were the easiest to get into and the hardest to get out of. Combined they cost me more than $10k, which isn't a grand sum, but I still think about those losses when looking at something new to pick up.

On that note, I want to mention the commission sales agents. Now, there's nothing wrong with a commission sales agent, I'm sure many of them are nice people. But, they have nothing I want or need, and I avoid them like the black plague. With the internet, and plenty of hustle on your own two feet, anyone can find investment deals in RE without sitting back and letting commission agents do the work. So far, I've saved far, far more on commissions than the $10k in losses over the years.

Note I said 'investment' RE deals. If one is a first-time RE buyer, and you are shopping for that perfect, perfect little home to live in with the wife, kids and rover - then maybe, likely a commission agent will help those in need to get settled in. And happy for them, well done. Being an investor means squeezing every last dollar out of every deal done. I've chipped thousands off deals by knowing about escrow, utils, and the power of cash right now. I like to deal straight with banks who hold properties, and try to never, ever talk to a RE commission agent.

Now, how this applies to buying RE or a Porsche, I guess that's a personal decision. But - if one goes investing, search wide, and search long. Be ready to slap the money down, and get a scribble on a contract TODAY.
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