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  1. #1
    Hi Everyone,

    I’m 27. I would love advice and ways to diversify my investments and/or eliminate debt. I earn W2 income ($40k full-time job, 4.7k part-time job).

    I own 5 homes. 4 rentals. (Earned $18,516.00).
    Home #1: Worth $162k—owe $133k, 29k equity
    Home #2: Worth $148k—owe $111k, 37k equity
    Home #3: Worth $120k – owe $84k, 36k equity
    Home #4: Worth $120k – owe $96k, 24k equity
    Home #5: Worth $78k – owe $49.5k, 28.5k equity

    $117,500.00 in RE equity.

    I have approximately $85,878.00 in various accounts (checking’s/savings/CD’s), and around $10k in 401k.


    Great things about 2017.
    - I paid off my car (around $9k)
    - I paid off $5k CC debt, I owe around $19.5k (with 0% interest).
    - Purchased multiple RE investments!

    Two priority goals for 2018.
    1. I plan to purchase a minimum of 3 rental properties this year.
    2. I want to pay off $10k (credit card debt).
    3. Find other investors to partner with!

    I would love to hear more of ways to invest outside of RE. And, would love to connect with other savers and RE investors!

  2. #2

    Advice: Ways to Diversify Investment Portfolio/Find connections/Develop

    To me the personal debt is a non starter and I would go the other way till i had my cash flow in hand, ideally including the personal residence. Then restart will less leverage and higher profit margin. I'm interested to know how many cycles you have weathered?

  3. #3
    How do you make in such a short time so much money for $170k equity. If bought in the last year then $170k is 4 years of gross income. Even saving over 10 years since age 17 then it's $10k/year which seems like a lot. Plus another $85k in checking account, $10k in 401k, paying off $9k car and $5k CC debt. Which is fine but I'm a bit confused by how you do it on $40k even keeping every penny and living at home for so $40k after SS and Medicare and no other expenses.

    I guess I'm not a bank. I would probably question how you can keep buying what if a renter stops paying? Do you not need cushion?

  4. #4
    Rather than buying more, I would start paying off the ones with lower debt. Once those are paid for, sock some away for maintenance and expenses and the rest is all gravy.

  5. #5
    Good question. I'm licensed as a real estate agent too. I find motivated sellers and/or homes in need of cosmetic repairs and purchased 75%-80% of current value and wait for appreciation to cash-out refinance.

    If I find a home for $80k (and worth $105k), pay 15% down and find renter willing to pay $1000.00, on a $550.00 mortgage it shows I am earning $200.00 monthly according to banking standards. That means I not only make $3500.00 for W2 employment but earn $200.00 from that investment. Does that make sense?

 

 

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