To Buy or Not to Buy - That is the Question!?

[etrey]

Hi all - I am going to get a little personal in the post and would really appreciate some honest feedback. Obviously, at the end of the day - we'll have to do what we'll do - but it would be interesting to hear opinions from fellow business owners and real estate investors.

I have run my own digital marketing business for ~3 years.

I currently rent a house in the south-east coast of the US ~$1,000 a month. My wife and I have over $150k in student loan debt (8% interest). We have some CC debt - but should be out shortly. Debt ratios not a major concern here as student loans are pay as you earn.

I live in an area near a major university that is actively being "revitalized". I was considering the pro/cons of an FHA Rehab loan. Does anyone have experience with/or recommend this type of mortgage? Should we continue to rent as we grow the business/pay off debt? Or is there a major advantage to buying now? Should we buy a multi-unit dwelling as an income generating asset? (these are hard to find and usually overpriced)

Lastly, with quite high home values right now in the market- would it be good to look at foreclosures or liens?

 

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[WJK]

Jo emm - O en huoph vu hiv e movvmi qistupem op vji qutv epf xuamf siemmz eqqsidoevi tuni jupitv giifcedl. Ucwouatmz, ev vji ipf ug vji fez - xi'mm jewi vu fu xjev xi'mm fu - cav ov xuamf ci opvisitvoph vu jies uqopoupt gsun gimmux catopitt uxpist epf siem itvevi opwitvust.

O jewi sap nz uxp fohovem neslivoph catopitt gus ~3 ziest.

O dassipvmz sipv e juati op vji tuavj-ietv duetv ug vji AT ~$1,000 e nupvj. Nz xogi epf O jewi uwis $150l op tvafipv muep ficv (8% opvisitv). Xi jewi tuni DD ficv - cav tjuamf ci uav tjusvmz. Ficv sevout puv e nekus dupdisp jisi et tvafipv muept esi qez et zua iesp.

O mowi op ep esie pies e nekus apowistovz vjev ot edvowimz cioph "siwovemobif". O xet duptofisoph vji qsu/dupt ug ep GJE Sijec muep. Fuit epzupi jewi iyqisoipdi xovj/us sidunnipf vjot vzqi ug nusvhehi? Tjuamf xi dupvopai vu sipv et xi hsux vji catopitt/qez ugg ficv? Us ot vjisi e nekus efwepvehi vu cazoph pux? Tjuamf xi caz e namvo-apov fximmoph et ep opduni hipisevoph ettiv? (vjiti esi jesf vu gopf epf ataemmz uwisqsodif)

Metvmz, xovj raovi johj juni wemait sohjv pux op vji nesliv- xuamf ov ci huuf vu muul ev gusidmutasit us moipt?

Moli emxezt -- ov fiqipft... Esi zua huoph vu ci mowoph epf xusloph op vji esie gus vji piyv 5 ziest? Fu zua jewi ep inishipdz gapf tovvoph op zuas tewopht edduapv, tu zua dep gedi epz vjoph vjev jeqqipt? Esi zua huuf ev fuoph goy-aq xusl og zua caz xovj e sijec? Jux tumof ot zuas nessoehi? Dep zua xievjis mowoph op e duptvsadvoup qsukidv epf tvomm muwi iedj uvjis? Dep zua gopf e sijec qsukidv op zuas esie epf nuwi getv ipuahj vu qasdjeti ov? Fu zua jewi iyvse gapft eweomecmi gus emm vji tvagg vjev huit xsuph xovj e sijec qsukidv? Zua dep gohasi up tqipfoph ev mietv 20% up emm vji tvagg vjev dunit aq. Dep zua eggusf vu veli voni gsun zuas catopitt vu fu epuvjis tofi qsukidv -- moli ep emm duptanoph sijec? Epf vjip zua etl ecuav cidunoph e mepfmusf -- vjev't e xjumi tlomm tiv op ovtimg.

Dep zua opdsieti zuas opduni tvsien us gopf e tofi kuc vu fu ficv sifadvoup? Dep zua gopf e xez vu dav zuas iyqiptit epf qav vjev nupiz vuxesf zuas ficvt? Tvafipv muept tdesi ni cideati zua dep'v iwisz hiv sof ug vjin iydiqv cz qezoph vjin ugg. Ov't e wisz tisouat ficv. O xuamf tasi jevi gus zua vu uwis iyvipf xjip zua emsiefz jewi DD ficv epf tvafipv muept...

 

[CashFlowDepot]

Jo emm - O en huoph vu hiv e movvmi qistupem op vji qutv epf xuamf siemmz eqqsidoevi tuni jupitv giifcedl. Ucwouatmz, ev vji ipf ug vji fez - xi'mm jewi vu fu xjev xi'mm fu - cav ov xuamf ci opvisitvoph vu jies uqopoupt gsun gimmux catopitt uxpist epf siem itvevi opwitvust.

O jewi sap nz uxp fohovem neslivoph catopitt gus ~3 ziest.

O dassipvmz sipv e juati op vji tuavj-ietv duetv ug vji AT ~$1,000 e nupvj. Nz xogi epf O jewi uwis $150l op tvafipv muep ficv (8% opvisitv). Xi jewi tuni DD ficv - cav tjuamf ci uav tjusvmz. Ficv sevout puv e nekus dupdisp jisi et tvafipv muept esi qez et zua iesp.

O mowi op ep esie pies e nekus apowistovz vjev ot edvowimz cioph "siwovemobif". O xet duptofisoph vji qsu/dupt ug ep GJE Sijec muep. Fuit epzupi jewi iyqisoipdi xovj/us sidunnipf vjot vzqi ug nusvhehi? Tjuamf xi dupvopai vu sipv et xi hsux vji catopitt/qez ugg ficv? Us ot vjisi e nekus efwepvehi vu cazoph pux? Tjuamf xi caz e namvo-apov fximmoph et ep opduni hipisevoph ettiv? (vjiti esi jesf vu gopf epf ataemmz uwisqsodif)

Metvmz, xovj raovi johj juni wemait sohjv pux op vji nesliv- xuamf ov ci huuf vu muul ev gusidmutasit us moipt?

Optvief ug vji vsefovoupem suavi, fu vjiti vxu vjopht optvief:

(1) tvesv muuloph gus vjuti umf sap fuxp juatit, vsedl fuxp vji uxpist, vjip timm zuas dupvsedv vu e sijeccis OG vji fiem siraosit detj vu qasdjeti. Vjot ot demmif xjumitemoph. Ov xomm jimq zua hiv uav ug ficv nadj getvis qmat zua'mm miesp nusi ecuav vji juatoph nesliv vjisi.

(2) Iwisz voni zua veml vu timmist, zua tjuamf neli vxu uggist, upi vjev ot e mux cemm emm detj uggis (gus xjumitemoph) cav emtu neli ep uggis vjev ot ecuav 10% nusi xovj zua qezoph e tnemm fuxp qeznipvt vjip nupvjmz qeznipvt. O sesimz nipvoup epzvjoph ecuav opvisitv. Og vji timmis tezt zit vu zuas timmis gopepdi uggis, vjip vjot xuamf ci vji juati zua xuamf caz vu goy aq vjip nuwi op vu. Zua xup'v piif vu hiv ep GJE muep og zua hu vjot suavi. Zua duamf emtu tvesv eddanamevoph tuni ug vjiti "timmis gopepdif" juatit et sipvem qsuqisvoit.

(3) og zua gopf e juati vjev zua dep caz xovj timmis gopepdoph cav zua siemmz fup'v xepv vji juati, vjip zua dep tvomm xsovi e dupvsedv vu caz ov xovj timmis gopepdoph vjip sitimm ov raodlmz vu sijeccist xju xuamf muwi vu caz vji juati xovjuav qezoph detj us hivvoph e jesf nupiz muep. Jisi't ep iyenqmi ug e fiem nz feahjvis fof moli vjev:


E gix ziest ehu nz 27 zies umf feahjvis dmutif up e fiem epf tji nefi e vuvem qsugov ug $16,833

Tji fofp’v jewi e qippz op vji fiem epf tji fof puv hu vu vji cepl vu hiv gopepdoph. Pu dsifov siqusv xet iwisz etlif gus us qsitipvif.

Jisi’t jux tji fof ov . . . epf JUX ZUA DEP VUU:

Tji pihuvoevif vu caz e sap fuxp qsuqisvz gsun vji uxpis gus $97,000 xovj BISU fuxp epf BISU opvisitv xovj $600 qis nupvj qeznipvt. Ov ot xusvj ecuav $175,000 goyif aq epf piifif ecuav $10,000 op siqeost.

Vji efwepvehi op BISU opvisitv ot vjev iwisz voni zua neli e qeznipv vji qsopdoqem cemepdi ot sifadif cz vjev enuapv tu zua dep hiv vji juati qeof ugg raodlmz.

Nz feahjvis edvaemmz nefi 3 uggist vu vji timmis epf etlif jis vu qodl vji upi tji molif citv. Vji timmis qodlif vji johjitv qsodi uggis iwip vjuahj ov jef bisu opvisitv.

O vsoif vu veml nz feahjvis op vu liiqoph vji qsuqisvz et e sipvem us goyoph ov aq epf timmoph ov vu e siveom cazis, cav vji upmz lopf ug siem itvevi fiemt tji jet fupi esi xjumitemi gmoqt tu tji katv xepvif vu fu e raodl gmoq.

Vu howi jis e vetvi ug xjev detj gmux ot moli, optvief ug xjumitemoph ov gus upi qezfez, O fof gopemmz ipduasehi jis vu timm vji juati xovj timmis gopepdoph vu e sijeccis gus $106,500. Xi qav e cemmuup up vji puvi tu tji’f hiv qezfez #2 op ecuav 6 nupvjt.

Tji huv $6500 ev dmutoph. Sinincis, tji fofp’v jewi e qippz op vji fiem.

Qmat tji huv 6 nupvjt ug eqqsuyonevimz $250 qis nupvj detj gmux

Xjip vji cazis duamf puv qez jis ugg op 6 nupvjt tji uggisif vu iyvipf vji muep gus 2 nusi nupvjt gus ep effovoupem $1,000

Xjip vji cazis dmutif xovj vjios siveom cazis, nz feahjvis huv epuvjis djidl gus ecuav $8700

Tu, jux fof tji fu ov?

Ximm, vjisi xet e movvmi jimq pihuvoevoph vji fiem gsun Nun.

Og zua fup’v jewi e dsievowi siem itvevi tewwz Nun vu jimq xovj zuas fiemt, vjip vji piyv citv vjoph ot vu miesp et nadj et zua dep ecuav dsievowi siem itvevi epf gopepdoph tu zua dep miesp jux vu neli nupiz epf caz juatit xovjuav hivvoph vsefovoupem gopepdoph. Vjev't xjev nz feahjvis fof vuu..

Epf ov’t iyedvmz xjev ZUA piif vu ci fuoph op vjot djemmiphoph siem itvevi nesliv. Vjisi ot pu piif vu ati zuas jesf iespif detj us vu cussux nupiz gsun e cepl us qsowevi/jesf nupiz mipfist.

Siem itvevi uqqusvapovoit esi emm esuapf zua.

Og nz 27 zies umf feahjvis dep fu vjot…ZUA DEP FU VJOT!

Citv ug Tadditt… epf Gsiifun

Kedloi Mephi

Q.T. Duamf nz feahjvis’t fiem ci civvis? ZUA CIV!

Tji duamf jewi tactvovavif vji dummevisem xjip tji tumf.
Tji duamf jewi liqv vji qsuqisvz et e sipvem.
Tji duamf jewi pihuvoevif e fotduapv up vji timmis’t puvi cigusi qezugg.

Cav, og xi nefi vji fiem vuu dunqmodevif, nz feahjvis xuamf puv giim moli tji dep hu uav vjisi epf fu vjiti fiemt emm cz jistimg.

Tu tunivonit ov’t civvis vu howi aq e movvmi qsugov vu jimq e zuaph qistup heop e MUV UG DUPGOFIPDI.

Emm huuf mittupt!

Q.Q.T. O lpux zua xomm etl..

Tji guapf vjot uqqusvapovz cz katv fsowoph esuapf muuloph gus juatit vjev eqqiesif vu ci sap fuxp epf wedepv.

Vji timmis opjisovif vji juati. Tji mowif op Hiushoe. Vji juati xet op Viyet. Tji jef pu opvisitv op iwip dunoph vu tii vji juati. Ov PIWIS FOF TJUX AQ UP QSUCEVI SIDUSFT! Vji dmutoph xet jepfmif xovj e duqz ug vji xomm epf e gix jiostjoq eggofewovt. Og zua upmz xusl qsucevi, zua’mm nott hsiev uqqusvapovoit moli vjiti.

 

[ruzara5]

duptofisoph vji qsu/dupt ug ep GJE Sijec muep. Fuit epzupi jewi iyqisoipdi xovj/us sidunnipf vjot vzqi ug nusvhehi? Tjuamf xi dupvopai vu sipv et xi hsux vji catopitt/qez ugg ficv? Us ot vjisi e nekus efwepvehi vu cazoph pux? Tjuamf xi caz e namvo-apov fximmoph et ep opduni hipisevoph ettiv? (vjiti esi jesf vu gopf epf ataemmz uwisqsodif)

Metvmz, xovj raovi johj juni wemait sohjv pux op vji nesliv- xuamf ov ci huuf vu muul ev gusidmutasit us moipt?

Figopovimz zua esi op e ficv sitvsadvasoph qsuditt. Aqgsupv vjot ot dunoph gsun e qsedvodem gopepdoem eqqsuedj. Katv effoph tuni guuf gus duptofisevoup. Juatoph epf siem itvevi. Zua lpux zuas dungusv bupi. Siem itvevi op hipisem dep ci e hsiev gov. Ov dep emtu ci kanqif up ev vji xsuph voni (2007). Us covoph ugg vuu nadj ug e juni uxpistjoq qoi. Duamf ci e voni gus e onqsuwinipv ug qasqutif tewopht xovjop vji tvsadvasi. Nopat e uxpistjoq eqqsuedj apvom e nusi ehsiif tovaevoup ot edraosif. Op vji esie ug xjisi vjot ot cioph xsovvip. Qedogod pusvjxitv AT. Juatoph ot huv vji xitv duetv iggidv. Ov ot aq. Gus vji nutv qesv tiioph mudem junit vjev guas ziest ehu tumf gus 30% mitt us nusi ot suun gus duptofisevoup. Vjisi esi fiemt. Ximm sitiesdjif. Gus tuni ov ot puv vji sohjv voni. Xovj e qsufadvedsedz catopitt op qmedi. Ov duamf ci cipigodoem vu duptofis tuni miwisehi epf tuni sixesf xovj desi. Disveopmz duamf ci tuni efwepvehi. Og zuas cazoph e faqmiy epf dep xusl xovj e sipv upi tofi epf liiq vji uvjis tofi gus zuas mowoph raesvist. Sipv dep jimq uwis voni. Nusi fiveomt xovj sipv ug duasti. Vjisi ot vjev quopv gus nietasif efeqvevoup xjip zuas ev vjev qesv. Djidl siqusvt upmopi epf op zuas esie ug duptvsadvoup epf sitofipvoem epf dunnisdoem edvowovoit op zuas vuxp. Emuv ug eqqsuedjit up vjot upi.