Tag: paying off a rental

June 23, 2020By Paula Pant

#262: Ask Paula – I’m Taking a Mini-Retirement in a Pandemic. What Should I Do?

Tyson is taking a year off of work and plans to devote some of his time to domestic travel, volunteer work, and bolstering his rental property portfolio. He originally planned to travel internationally, but won’t due to the pandemic. How does this plan sound?

Jace is wondering whether she should take advantage of the low stock market prices or keep a larger emergency fund due to the pandemic. Which is the better option, given her goal of financial independence?

Jace also wants to know: where do you park your money after maxing out a 401k and Roth IRA?

Venkat had to relocate after living in a condo for one year. He rents out the condo, but he’s in the red. Should he sell this condo? If so, when?

TW has $250,000 in cash that he can use to either pay off his rental property or purchase two more properties. Which is the better option?

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

Keep reading...

May 1, 2020By Paula Pant

#254: Ask Paula – Should I Invest During a Pandemic?

It’s our First Friday bonus episode!

Lydia earns income as both a 1099 contract worker and a part-time W2 employee. She filed for unemployment as a W2 worker, but can’t find information on how to file as a contractor. Is there a process contractors can follow to file for unemployment?

Florina and her husband have $70,000 in cash to invest. Where should they put this money in light of the current market?

Ali and his wife saved eight months of living expenses in their emergency fund in case they get laid off during the pandemic. Is this too excessive?

Danielle wants to take advantage of pandemic stock prices – what should she invest in?

Anonymous in Real Estate wants to buy a multifamily property with the equity in their first rental as a downpayment. Their husband doesn’t want three mortgages. Should they accelerate mortgage pay-down and be one mortgage down in four years?

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

Keep reading...

December 16, 2019By Paula Pant

#231: Ask Paula – How Can I Get My Spouse Interested in Frugality?

Avie is looking for help in deciding between two good options: paying off a rental property, or funding a retirement account. Which option should she go with?

Sofia’s parents have been living with her for the past few years, but her job is taking her out-of-state. How should she transition her home to a rental property for her parents?

Lisa has a question about HSAs: when do you actually fund your HSA account?

Jim grew up frugally and has no qualms with this lifestyle, but his wife doesn’t share his views. He’s curious about how he can bring her to the frugal side, and how he can approach opening her eyes to starting a business so that she can stay at home with their kids.

Candice asks: what are your thoughts on online real estate investment crowdfunding platforms?

Kristen has a mortgage on her primary residence and a rental property. They’re both at similar interest rates. Which one should she focus on paying off first?

I answer these questions in today’s episode of the show. Let’s dive in!

Keep reading...

November 1, 2019By Paula Pant

#223: Ask Paula – Should I Choose This or That? How to Weigh the Tradeoffs

Elizabeth is curious to know: what does a good net worth breakdown look like? Is it appropriate to have a lot of your net worth tied up in real estate?

Marie wants to start her own business, but she’s living paycheck-to-paycheck. Is incurring debt her only option to make this dream a reality?

Bria wants to take a second mini-retirement and has a good chunk of money saved up. She wants to come back to the workforce with a cash cushion. What should she do with her money while traveling?

Anonymous is relocating from Southern California to Florida. She wants to know if she should rent an apartment and buy a rental property, or buy a primary residence with the $150,000 she has saved.

Connor is facing a dilemma. Is he correct in not prioritizing 401k contributions given that his employer doesn’t offer a match, combined with his goal for financial independence? Is his strategy of using his savings for real estate investing better?

Caroline is wondering: should she aggressively pay off her home and her rental properties, or use her excess savings to fund a brokerage account?

Today’s episode is full of exploring and weighing tradeoffs. Let’s dive in!

Keep reading...

July 1, 2019By Paula Pant

#201: Ask Paula – Which House Should I Pay Off First?

Ross and his wife are both in the Navy. They bought a home while they were stationed in Hawaii. Then the Navy sent them to Virginia, where they currently live; they’ve purchased a home there, too. They kept the Hawaii home as a rental property, and they’d like to move back into it when they retire. Which home should they repay first?

Mike is 33, debt-free except for his mortgage, and earns more than $200,000 per year. He saves half of his income. What should he do with his savings? Pay off his mortgage? Invest?

Josh has a nervous habit of checking his investment account balances daily. How can he break this habit?

Amanda and her husband live in a duplex. They have $115,000 in equity in their home, and another $115,000 remaining on the mortgage. They’d like to move. Should they hold the duplex as a rental? Or should they sell and use the proceeds to buy a cheaper home, with a goal of being mortgage-free?

Christy wants to know how to compete with other aggressive real estate investors who are bidding on homes.

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

Keep reading...