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November 12, 2018By Paula Pant

#161: Ask Paula – How Can I Get My Friends Interested in FIRE?

Paula Pant - Ask Paula: The Early Retirement EpisodeIn today’s episode, I answer two questions about financial independence and the FIRE movement, followed by four questions about rental property investing.

Matt asks:
I’m interested in achieving financial independence, and I want to encourage my friends to pursue the same goal. What podcast episodes provide a light, digestible introduction to the world of financial independence and retiring early?

Daniel asks:
Do you have any opinions on the saturation of financial independence blogging and podcasting pursuit. It seems like everyone who pursues FIRE has a blog or a podcast. It almost seems like making extra money by blogging or podcasting about FIRE is a necessary step to achieving financial independence. This seems contradictory. What’s the point?

Tom asks:
I’m a consultant with a California-based LLC. My consulting company doesn’t hold many assets under the LLC’s name.

As my wife and I start to purchase rental properties, should we hold these properties in my existing LLC? I know there are general benefits to owning property inside of an LLC, but I’m wondering if it makes sense to combine this with other active income, like consulting income. Thoughts?

Anonymous asks:
What factors go into your decision on whether or not to use a property management company? How should I estimate the cost of repairs and maintenance? And how should the tax benefits of rental properties play a role in choosing a property?

Brett asks:
I own a fully-paid-off rental property in Las Vegas. I bought it for $105,000 in 2011, and it’s currently worth $235,000 – $240,000 today. I’m renting this property for $1,200 per month, which is a good return on investment, but not a good return on equity.

This property was my primary residence until December 2017. If I sell it in the next couple of years, I can avoid paying capital gains tax, which will be at least $15,000.

I want to invest more in real estate. If I sold the property, I would want to use all of that money (along with additional funds) to invest in real estate in a new market.

I’m not a leverage person. I don’t want to take out a HELOC or refinance. I want to pay cash for my future properties when possible.

Should I continue to hold my current rental property, or should I sell and invest in a new market with better returns?

Anonymous asks:
I’m an Indian citizen who lives in California on an H1-B visa. I own two rental properties in Texas.

There’s a chance that my visa won’t be renewed, which means I’ll need to move back to India. What should I do with my rental properties?

Right now, I’m managing my properties from out-of-state. In the future, I’ll have to manage it from out-of-country. How should I prepare? What should I do before I leave the U.S.?

I have minor children who are U.S. citizens. My hope is that they’ll manage the properties when they become adults, which will happen in 15 years.

Can I manage my properties from another country? If so, should I purchase more?


I answer these six questions in today’s episode. Enjoy!

— Paula

Resources Mentioned:

Question 1:

  • Afford Anything – Escape eBook
  • Ep. #65 – How to Improve Your Relationship With Money
  • Ep. #39 – The Seven Stages of Financial Independence, with Joshua Sheats
  • Ep. #87 – Money Myths – Are Your Ideas Holding You Back?
  • Ep. #89 – Imagine You Only Have 10 Years to Live…

Question 2:

  • Ep. #139 – How I Save Half of My Income as a Firefighter, While Living in an Expensive City, with Kim E.

Question 3:

  • Dun and Bradstreet

Question 4:

Should you hire a property manager? You'll get the most bang for your buck if you stick with hiring managers for your Class C properties.

Other Resources:

  • affordanything.com/water
  • Afford Anything Community Facebook Group
  • @paulapant on Instagram

listen to afford anything on itunessubscribe on android afford anything

 


Thanks to our sponsors!

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Beachbody On Demand
Have any fitness goals you’re working toward? Then check out Beachbody On Demand, an online streaming service that gives you unlimited access to over 600 highly effective, world-class workouts. I’ve been using Beachbody On Demand for a few weeks now – the core workout from the T25 program is my favorite. To get a full-access free trial membership, text Paula to 303030.

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#162: AI and The Future of Jobs - with author Darrell West
Next Newer Episode »
#160: The Paradox of FI -- with Jonathan Mendonsa and Brad Barrett of Choose FI
Next Older Episode »

Posted in: Episodes, Real EstateTagged in: ask paula, blogging, capex, financial independence, international investing, LLCs, lowering taxes, podcasting, real estate team, sell or rent out

7 Comments
Leave a Comment
  1. Lynn

    # November 13, 2018 at 8:51 pm

    Hi Paula!

    A few things…I thought you mentioned a resource you had about when to hire a PM. I am having trouble locating this….I need to buy a vowel…

    Second, I am a FI/RE person. Got to FIRE in 9 years. Female. Non-engineer, non-tech (I am a nurse, hubs was a cook), non-blogger/non-podcaster. High COL area. You mentioned you might like to hear from those of us who are quieter in that movement. I was in the WSJ on Oct 12th so you can see a bit of our story there in the Mansion/Real Estate section, under “how to thrive in early retirement” We are the ones with small kids and without the palacial house 😂 we do not have a blog or podcast or website, but I have some thoughts about why so many do since making my own transition.

    Third,
    I was one of those that purchased the fundraiser for Playing with FIRE that includes an hour with you. Ideally I will be in LV after I “retire” in January. More to come, I am sure we will be connecting in the future!

    Keep it up, your podcast, is 👌💪

    Lynn Frair

    Reply ↓
    • Erin @ Team Afford Anything

      # November 14, 2018 at 1:16 pm

      Hey Lynn – Paula may have been referring to this post on hiring a good PM — https://affordanything.com/how-to-hire-a-property-manager/

      Hope it helps, and congrats on the WSJ feature. =)

      Reply ↓
      • Lynn

        # November 14, 2018 at 11:37 pm

        Perfect, this was what I was looking for… Thank you Erin!

        Reply ↓
    • Paula Pant

      # November 19, 2018 at 1:17 pm

      Hi Lynn,
      That’s excellent on all fronts!!

      #1: I would love it if you called into affordanything.com/voicemail and left your success story … I would absolutely love to share that on the podcast.

      #2: Hooray for Playing with FIRE — thanks for supporting the documentary and I’m excited to talk with you! To clarify — Are you going to be visiting Las Vegas in January? If so, I’d be happy to meet in person!

      Cheers,
      Paula

      Reply ↓
  2. Lynn Frair

    # November 27, 2018 at 12:04 am

    Paula,
    Delayed reply as your reply ended up in spam (how dare they!)
    I will call in this week with some of our story, as you recommended. I do not have a Vegas date set yet but it will be sometime after January since that is when I “retire”…but nothing is set–I will connect with you to make sure it would work before planning anything, of course! Lots of synergies have been coming into place, as this new adventure unfolds, it is unreal. My voicemail will be forthcoming.
    Lynn Frair

    Reply ↓
  3. Brian Iles

    # December 3, 2018 at 2:50 pm

    You asked about people who are either in FI or process to reach FI. We are working towards FI.

    I’m a Firefighter and my wife is a teacher so we are a middle income family. We also have kids so our journey is a little more complex. We live in a small town, paid off most of our debt, and are saving close to 25% of our monthly income after taxes. I’ve even have started to write a blog about your journey and about FI in general. I’m still working on finding my voice as a blogger and building a base. I’m only a few months into that journey. FYI I very much appreciated your blog on blogging for beginners!! Thank you!!

    My Journey

    I started as a Dave Ramsey follower working my way out of debt and into a positive net worth. I loved and ate up all the information I could out of his books and programs. I even took his Financial Coach Masters Training. But even after all of that I ran into the problem of what’s next. That’s when I stumbled onto two weird guys in a basement. They mentioned you and I got hooked on both the podcasts. I’m a supporter of the 1% rule of improving yourself and also saving. Thank you for that eye opening podcast too! My family has a long way to go but we are making great strides.

    Thank you for your time. Thank you for speaking out about the FI and FIRE community! It’s nice to hear different views on reaching the same end goals.

    Brian

    Reply ↓
  4. milffox

    # November 27, 2019 at 7:17 pm

    Anonymous from California wants to know how I decide whether to use a property manager vs. self-manage my rental properties. She also wants to know how to estimate the cost of repairs and maintenance. And how should the tax benefits of rental properties play a role in choosing a property?

    Reply ↓

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Afford Anything

  • Start Here
    • About
    • Team Afford Anything
    • Media
    • Questions?
  • Blog
    • Binge
  • Podcast
    • Binge
    • Sponsors
    • Ask a Question
    • Guest Guidelines
  • Community
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    • Your First Rental Property
    • Travel
    • Start a Blog
    • Earn Extra Income