Lien is taking a year off of work to live the van life with her husband. She wants to know how she can make the most of this sabbatical to figure out how to turn her less-than-inspiring career into a lifestyle that she loves.
Lien called in again to say that she wants to start a new business and a family when she returns from her gap year. Her former job offered excellent health benefits and maternity leave, but she doesn’t really want to go back. What should she do?
Eddie wants to build his real estate portfolio. How should he approach downpayments – put down more to net more profit, or put down less to acquire more properties?
Wilson is wondering if it’s a good idea to partner with a friend on real estate ventures. What are the downsides?
Wilson also wants to know about real estate business expenses, and the pros and cons of short-term rentals vs. long-term rentals.
Sean has an inconsistent employment history and is struggling to find a lender that will give him a mortgage. He wants to know if there are any other ways he can get a mortgage for a 4-plex?
An anonymous listener is thinking about taking the leap into real estate investing and wants to know how to overcome the fear they have about it. Also, should they put all of their savings towards real estate?
Anonymous is also wondering: how do you calculate net worth when you’re married?
I answer these questions on today’s episode of the podcast. Enjoy!
Lien asks (at 01:05 & 10:08):
My husband and I have decided to make the big leap and sell our home in San Diego to live the van life and travel for a year. Other than having fun and trying my hand at a travel blog, I want to take this time to reflect on my purpose and how to transition my less-than-inspiring career as an accountant into something more fulfilling. I don’t know how to make the most of this sabbatical. What questions should I be asking?
A month later, Lien called in again to say that she’d like to start a new business, as well as a family, when she returns. She says: my employer offered amazing benefits and maternity leave, but the thought of going back isn’t very appealing. How do I break down this decision, financially and otherwise? What are my insurance options when self-employed, specifically as it relates to maternity healthcare costs?
Wilson asks (at 24:11):
I’m thinking about partnering with a friend on a real estate venture. He has some experience and already owns some properties in different areas, which might make it easier for me to get my foot in the door and mitigate risk. What are some of the downsides of this? Is there a good way to structure this? I don’t want the business to affect our friendship.
My second question revolves around tax deductions. What can be considered a business expense in the realm of real estate?
My third question is: what are the pros and cons of short-term rentals as compared to long-term rentals?
Sean asks (at 40:48):
I want to buy a 4-plex and use it to househack, but I’m finding it difficult to get a loan because of my job history. I’ve been in the freelance market for a while, and even though I have a decent savings account and a downpayment, no one is willing to lend to me. Do you have any suggestions for how I can buy my first real estate property with an inconsistent job history?
Eddie asks (at 51:11):
I’m trying to build my real estate portfolio – right now, I have two properties. Do you think it’s better to save 20 percent down, this way I net a bit more from the profit? Or do you think it’s better to put five percent down to acquire more properties quickly?
Anonymous asks (at 58:37):
I’m in my early 30s, married with one child, and own a townhome. We have a high enough income that we can’t contribute to a Roth IRA, but we both max out our 403(b)s through work. I recently got the option to contribute to a Roth 403(b) instead, and since I’m relatively young, I decided to move all of my contributions there. I think we’re saving around 40% of our income this year. We have six months of expenses in savings and just started contributing to a taxable brokerage.
I’m thinking the next step is real estate, but I’m still nervous to take the leap. I have a few questions:
- Any advice on how to overcome the real estate newbie fears so I can take the plunge?
- Should I put all of my savings towards real estate, or contribute to my taxable brokerage?
- After listening to an older podcast, I had this question as well: when married, do you consider net worth for both you and your spouse as one number? How does that work?
Resources Mentioned:
- Book: Nolo Every Landlords Tax Deduction Guide
- Article: The 4 D’s of Business Exits
- Article: The Airbnb Experiment: How I Impulsively Started a Vacation Business
Have a question you want answered? You can leave a voicemail here.
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