Tag: downpayments

April 8, 2019By Paula Pant

#187: The Final Ask Paula: Real Estate Episode!

Sarah needs $36,000 per year in living expenses in order to reach FIRE (Financial Independence, Retire Early). She owns several rental properties, and she’s aggressively paying off the mortgages through the debt snowball method. How will she know when she’s ready to live on $3,000 per month in consistent rental income?

AyV wants to rent out his primary residence. What steps should he take to prepare the property for rent? Should he hire a contractor? What level of renovation should he give it?

And more!

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April 1, 2019By Paula Pant

#185: Ask Paula: How Do I Talk to Friends who Ridicule the Idea of FIRE?

Hello from Austin, Texas! I’m living in an Airbnb here for the next 5 weeks. Listen to the end of today’s episode to find out why … and discover how these next 5 weeks, for me, exemplify the “why” of financial independence.

In the meantime, though, the show must go on! Here are the questions that we’re answering in today’s episode.

An anonymous listener named Seeking FIRE wants to know how she can talk about financial independence with people who ridicule the topic. What do you say to those who laugh at the very idea?

Russell owns a landscaping company and is also a part-time student. He’d like to earn more money on the side, but his schedule is overbooked. What can he do?

Nick and his family are moving to the Washington D.C. area for approximately two to six years. They own two rental properties free-and-clear, and would like to buy a personal residence when they move. How should he save for the downpayment?

Gerardo lives in Mexico and wants to retire on his investment portfolio, using the 4 percent withdrawal rule. How should he invest, given currency fluctuations and other international factors?

Anonymous left her job and wants to know if she should roll over her 401k from her old employer.

We tackle these five questions in today’s episode. We also answer a comment from a listener who says that individual stock-picking and active management doesn’t get the credit it deserves.

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February 11, 2019By Paula Pant

#177: Ask Paula and Joe: Should I Buy a House or Catch Up on Retirement Savings?

Imagine that your job is extremely well-paying, but you don’t enjoy it.

You’d like to switch employers, even though this will probably require a paycut. But before you make the switch, you want to accomplish two goals: buy a home and catch up on retirement savings.

Should you pursue both goals? Or should you defer the home purchase, given the potential future paycut?

If you decide to pursue both goals, which one should come first?

This is one of the five questions that former financial planner Joe Saul-Sehy and I answer in this week’s podcast episode.

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January 14, 2019By Paula Pant

#172: Ask Paula – Should I Buy a Nice Car or Save My Money?

Should a 25-year-old homeowner with healthy savings and no debt (other than his mortgage) upgrade his car? Should he make this choice if his current car is fine, and upgrading puts him into new debt?

Should a couple without access to an employer-sponsored retirement plan put their savings into a taxable account, or should they save for a downpayment on a rental property?

The market is fluctuating like mad; if someone has a lump-sum of cash, should they invest it now or should they slowly meter it in?

Should someone without an emergency fund enroll in an HSA-qualified health insurance plan? Or should they stick with a plan that has a smaller deductible?

How should a husband-and-wife team that’s self-employed and running a company together handle their health insurance?

Former financial planner Joe Saul-Sehy and I answer these five questions on today’s podcast. Enjoy!

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October 22, 2018By Paula Pant

#157: Ask Paula – Can You Force a Rental Property to Cash Flow?

We’re back with another Ask Paula – Real Estate Edition of the show!

In this episode, we cover down payments, cash flow, investing in condo hotels, building a rental on the side of your own house, selling your properties, and whether it’s better to buy actual properties or REITs.

Erin asks:

Would you ever put […]

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October 8, 2018By Paula Pant

#155: Ask Paula & Joe – How Can I Send My Four Children to College?

How can a schoolteacher dad and stay-at-home mom send their four kids to college? Where should a 23-year-old keep the savings that she’s accumulating to buy a home by the time she’s 27 or 28?

What should a listener know about retirement planning if he has a pension? And should a listener rollover his 401k […]

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June 18, 2018By Paula Pant

#135: Ask Paula – How Can I Get a Downpayment for a Rental Property?

Time to talk about houses! I answer your questions about rental property investing in this week’s episode.

Our first question comes from James, age 25. He lives in Florida, where he bought a $130,000, 3-bedroom, 2-bath condominium in the Class B range as his primary residence. He’d like to buy a second home and rent […]

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January 29, 2018By Paula Pant

#114: Ask Paula – How Should I Invest $100K in Real Estate?

This week, I answer five questions about real estate investing from the audience.

Joelle asks:
I own a home outright on the West Coast. I’m thinking about taking out $100,000 from my home equity, and using this money to buy a rental property.

I found a community out east where I can buy a […]

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November 20, 2017By Paula Pant

#104: Ask Paula – How Can I Learn about Money from the People Around Me?

This week, I answer 4 questions about quitting a depressing job, learning how to ask probing questions, saving for a downpayment, and more.

Edward asks:
How can I learn from other people around me? I’m 28, and my wife and I have some money that we’d like to invest. We know people who’ve had […]

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November 6, 2017By Paula Pant

#102: Ask Paula – Should I Sell My Rental Property & Invest the Proceeds in the Market?

This week, I’m back to answering questions posed by listeners of the podcast.

Wally asks:

Should we continue to rent out our home, or should we sell it? We bought a home in California but have since moved to New York and have been renting there. After all expenses on the rental are accounted for, […]

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