My journey of becoming financial independence by 35 years old
What’s up, everyone? I’ve been working through the holiday. But I’d manage to get myself an early X-Mas present, a Macbook Pro 2015 version. So this is my first blog from the Macbook Pro Retina. I’m excited about it, and hopefully, I can provide better web experience with a full functioning computer instead of from the iPad.
With many crazy things going on in the world and in America, I pray for peace, and I hope everyone stay safe. (Holidays are the worst for suicide rate, please check with your family members, we have a couple of 13 yo and adults cases this holiday weekend. It was super sad.)
To keep you guys inform on my portfolio, I’ve cashed out BAC (yields is now ~1%). And now sitting on $200K of cash (lurking for better investment opportunities). And I’m weighing the options.
Well, I’m trying to decide whether to use my $200K in cash to buy $155K duplex, or $200K as a down payment and fixing to buy side-by-side quadplex.
To be inclusive, there is a quadplex for $150K which is already bring in $2800/mo (this one is out of the question for me as the property is surrounded by 3 different cementaries, I fully respect dead people, but I’d prefer to have my properties far from where people are burried). Plus, one time when taking a short cut through town, Siri suggested a route through this neighborhood, and there were gun shots on the street, I thought kids were popping balloons, before Mr.W, and the people in the neighborhood open their door to check out the shooters. Yikes!
$155K duplex. It’s a foreclosure, so the process might take awhile even with an all cash offer. 2700 sqft, 4 beds, 2 baths. (2beds, 1 bath/unit), rent probably could go for $900/unit. ($1800/mo for 2)
$400k – 2 duplex, side by side. Each half is a duplex – unit 1 – 1 bed, 1 bath ($700), unit 2 – 2 beds, 1 bath.($900). $3600/mo for all 4.
Well, there are always other options:
keep the money LOL 🙂 Mr.W is always favors this position.
I’d like to take my time to look for opportunity in REITs are the rate are set to go up.
The DOW is at the all time record high, crossing the 19000 and marching toward the 20,000. I have no doubt that it would cross this point approaching the holiday, as optimism is all the all time high. Violence and crime are generally down during the winter months. Bad news/views won’t come into play until March (US debt ceiling is up for debate this March, and the UK is set for the Brexit in March if they haven’t already decided.)
5000 sqft building $300K, the the prime real estate area. But it’s a mixed-used property, and I’m about $40K short of buying it outright. After buying that, every month, I don’t get it rent out, I’d still have to pay business real estate tax, and home real estate tax. The bigger the size, the more it’d cost to renovate, that is for sure.
This one is hard to say, But the bottom can be separate in 2 units of a store front of some sort. Rent for a business is in progressive model – $1500/unit the first 2 years, then increase up once their business is establish.
Rent upstairs could be split in 4 units or in 2 units – Each could go for another $1500/unit.
But I would be a fool if I think it’s that easy! hahha… to get each and everyone of these unit to run, I’d at least put $15-$25K into the them. Yikes!!
Another thing to consider is “mixed used” property is super hard to sell, as no many people would be qualify to buy mixed used. It’s a little harder to find underwriters that could write mixed used property loan, per se. When they do, they’ll charge an arm and a leg for interests.
I still haven’t decided which options I’d go for yet. As of now, my then 8, now 7, rental units have been keeping me rather busy. Taking on more renovation projects, probably would leave me no time for enjoyment, it’s something I don’t know I want to do, considering I’m already FI.
Oppotunities are very where, you’d just have to look and hustle. Notice, I only say it’s might be “harder” to get the loan, but I didn’t say “impossible” heheh…