Why Turning A Primary Residence Into A Rental Is A Bad Idea
If you’re thinking about or already have turned a primary residence into a rental, you might want to rethink that. Even if your property is allegedly in a “high appreciation” market, it still may not make financial sense to hold on to it. To understand why, it all comes down to a numbers game, especially taxes. In this post, I will share why I decided to sell my very 1st primary residence instead of turning it into a rental, how I determined that was the best financial decision, and the numbers to back up my decision.
My 1st North Dallas Flip Sold For $130,000 Over Appraised Value
In my previous post, I talked about my house-flipping strategy and my takeaways from my 1st out-of-state flip. However, when I wrote that article, I hadn’t officially sold the home yet. But today, I’m happy to announce that I’ve officially sold the home! While it was a happy ending, when I first listed the home for sale, the listing really got off on the wrong foot. Today, I will share the full story with you.
8 Steps To Buying A Home Anywhere
The home-buying process can be overwhelming, especially for 1st-timers. Even experienced real estate investors have their work cut out for them since every real estate transaction can pose unique challenges. However, the majority of the process (and paperwork, ugh!) is largely the same every time. In this post, I will go over the broad strokes of the home-buying process to help you understand what it takes to become a homeowner. Let’s dive right in!
My Top 9 Tips For 1st-Time Home Buyers
Having bought my 1st home at age 22 and after taking part in dozens of purchases over the years, I’ve been asked by so many people for tips to buy their 1st home. Depending on where you live, the market can be red hot where multiple offers and bidding wars are normal, leaving many of you wondering how to even compete.
In this article, I will talk about common dangers of being a buyer, how to navigate through those pitfalls, and some of my top techniques that I employ when I’m shopping around for a home. Even if you are an experienced home-buyer, many of the tips and tricks I’ll talk about in this article are applicable to buying any home, not just a primary residence.
Bad Debt, Better Debt
Okay, you made a mistake of carrying your credit card balance over one month. So what? It’s just a month. Next, you continued to carry that balance over one more month. No problem, you’ll pay it off in the 3rd month for sure. Uh oh, time has really gotten away, and now it’s been an entire year, and that balance has really grown! Now you’re in a real pickle and don’t know how to stop the vicious cycle. How will you get out of this cycle?
With $8,200,000 In Debt, When Will I Be Debt Free?
In my previous post where I shared my $10 million FIRE goal by age 40, I mentioned that my investment allocation will be 30% in real estate. That’s $3M of my own cash invested in rental properties, and I fully intend to leverage that $3M as much as possible, leaving me with a whopping $7M of debt! That doesn’t even include my current $1.2M jumbo mortgage for my primary residence, which would have a remaining balance of around $900K by then. That leaves me asking myself, “After voluntarily acquiring $8.2M in debt, how long will it take before I become debt-free?”
Predictions of 2021’s Economy and Investing Landscape
Between COVID-19, the March 2020 stock market crash to all-time highs for a basket of stay-at-home stocks, no one could’ve predicted what 2020 had in store for us. Let’s have a little fun today by looking into our crystal balls and predict what 2021 has in store for us! At the time of writing, it is December 30, 2020. By the time you’re reading this, some of my predictions may have already come true!
How A Self-Made Millionaire Budgets
Have you ever wondered how much a millionaire spends per year? Do they even have budgets? What do they spend their money on? Speaking from firsthand experience as a self-made millionaire, I definitely do have a budget, and I know exactly where my money is spent every month. It’s important to know where my money is spent no matter how high my net worth is. Tracking my expenses and comparing them against my budget is crucial to attaining financial independence some day. Becoming a self-made millionaire in my 20s didn’t happen by sheer luck; it was calculated. Budgeting helped me get to where I am today, and I assure you that it will continue to help me reach my goal to attain financial independence by 40.