Quote:
Originally Posted by Xist
He says you get a side job, save up $20,000, buy a cosmetic fixer-upper for below market value, fix it up, and live in it [instead of renting]. The next year you save another $20,000, buy another cosmetic fixer-upper for below market value, fix it up, and rent it out. He says that you save up $20,000 and buy a house to rent out every year.
He previously said to put 3.5% down. It may not flow cash, but it will once you pay off the mortgage insurance? He has a video saying that if you break even, but build equity, you come out ahead.
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This much detail requires more organization to be easily readable/understandable.
Anyhow, the equity you build is extremely small at first based on how interest rates work. The first year 85% of your payment goes into interest, and only 15% goes towards the principle.
Regarding fixer uppers; profiting from improvements depends on the market value of those improvements vs your investment of time and money. Some improvements can be cash positive, while many are not. If the house had black painted walls, obviously painting then neutral/white would improve the value more than the cost to paint. My kitchen has granite tile, and I don't like tile. If I were to tear it out and put quartz or granite slab in, there's almost no way I'd make the money back in added home value.
The thing about improvements only helping a home sell faster sounds bogus to me. If something becomes more desirable, then by definition it's more valuable. Instead of selling fast, just increase the price and wait a little longer to get it.
This deserves it's own thread...
Quote:
Originally Posted by RedDevil
A funny thing about Tesla is the mentality behind their innovation drive....
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I thought you had gone massively OT after reading Xist's post, then I looked at the thread title.