Afford Anything

Tag: real estate investing

By Paula Pant

#320: Ask Paula – Thinking about Money from First Principles

Rob hopes to retire at age 60, but he has a pesky mortgage balance he wants to eliminate beforehand. He and his wife expect to inherit $300,000. Should they use this money to pay off their mortgage or should they bulk up their retirement accounts?

“Billy” has two questions. One is about the tax efficiencies of ETFs vs. mutual funds, while the other is about Ginny Mae funds and whether there are bond funds that have an inverse relationship with equities.

Priya is looking for information on home equity loans: where can you get the best terms, and what are the disadvantages? Additionally, she’d like to know which city is best for rental investing: Atlanta, Dallas, or Raleigh?

My friend and former financial planner, Joe Saul-Sehy, joins me on the show to answer your questions. Let’s dive in!

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By Paula Pant

#316: Ask Paula – I Doubled My Investments During the Pandemic. What Should I Do Next?

Michele wants to reach financial independence (FI), and her grandparents are leaving her their house. She already owns a home, and she’s torn between six potential options that will propel her toward FI. What should she do?

Fred doesn’t have access to a workplace retirement plan. Besides opening a Roth IRA, what else can Fred do to juice up his retirement savings?

Pauly from Portland doubled the inheritance money he received from $50,000 to $100,000 during the pandemic. Now he’s wondering if it’s okay to use this $100,000 as a downpayment on a home in Portland. Is that a wise use of the money?

Preethi accidentally withdrew funds from her Roth IRA as an excess distribution, and she’s already filed her taxes. What should she know for tax time next year?

Casey is in the market for a second rental property and wants to know: would we recommend purchasing a rental in a complex where she already owns a condo? Or should she diversify into a different complex in a different, nearby, more stable town?

My friend and former financial planner, Joe Saul-Sehy, joins me to answer these questions on today’s show. Enjoy!

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By Paula Pant

#310: Ask Paula & Joe – What Should I Do With $25,000?

Greta is tired of financial modesty. She wants to achieve financial independence through diversified income streams, and has her eyes set on owning local duplexes. What should she focus on to make this happen?

Jeannie wants to know: should you scale back 401k contributions so you can invest in something else, like real estate?

Steph and her husband came into $25,000 and aren’t sure what to do with it. Should they pay off their student loans, save it towards a house and starting a family, or purchase her company stock options?

J from California is curious: how do you strike a balance between optimization and simplicity in your financial plan?

Dawn has $65,000 in a 403b through Ameriprise and the fees associated with it are outrageous. Should she take the money out and put it elsewhere, or leave it?

My friend and former financial planner, Joe Saul-Sehy, joins me to answer these five questions. Enjoy!

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By Erin @ Team Afford Anything

#309: Are We Due For Another Housing Market Crash?

Are we in a housing bubble?

Are we going to see a repeat of 2006 all over again?

Are there any good investment deals to be found right now?

These are the questions playing on many people’s minds, and we seek to explore the answers in today’s First Friday bonus episode.

We start by exploring some of the forces that are at play in today’s real estate market. What separates the market of 2006 from the market of today?

In the second half of the episode, Paula explains how and why she chose to buy a duplex in Indianapolis, despite being in a seller’s market. There are deals to be had if you know where to look and what to look for.

Enjoy!

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Written By Paula Pant

How Kelsey Bought a Rental Property in Joshua Tree, California

Kelsey Kaszas loves numbers.

But crunching numbers too much can be a crutch, rather than a tool.

Before she enrolled in Your First Rental Property (YFRP), Kelsey found herself stuck in analysis paralysis. She wanted to invest in rental property, but she kept crunching theoretical numbers without taking action.

“When people talk about how difficult it is to get over analysis paralysis, that is me, that is absolutely me, because I’m such a numbers person,” she said. “I love to analyze every single aspect of something new.”

She’s not alone.

Analysis is great. But analysis paralysis, when overthinking or overanalyzing leads to inaction, is one of the most common obstacles new investors face.

When you’re putting significant savings on the line, analysis paralysis is a normal fear-based response.

But it sidelines you. It shortens your time in the market and the compounding gains that follow.

Kelsey recognized this and enrolled in the course to learn how to rigorously analyze properties without succumbing to analysis paralysis.

She learned how to transform analysis into action.

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By Paula Pant

#304: Ask Paula & Joe – Help! I Can Only Save $200 a Month

Paige and her fiancé have two autumn 2021 goals: save for a wedding and an emergency fund. There’s one problem: they only have around $200 per month to save. How can they grow the gap when they’ve run out of things to cut and ways to earn more?

Kat’s investor friend connected her with a wholesaler who only deals in cash. How can she find $130,000 to buy her subject property?

“Jon,” an anonymous caller, is renting his grandparent’s property, which he plans to make his forever home. It’s on the older side and needs renovations, but the repairs don’t need to happen immediately. How can he fund these repairs while also avoiding a mortgage payment in his 60s?

Anonymous caller “Chadwick” is planning for financial independence. Given that his employer covers his housing, when should he and his wife look for a house? Now, or in the last year of his job?

Annalis wants to know whose approach to business I prefer: Gary Vee’s, or Cal Newport’s? She also asks: how do you become a good speaker?

My friend and former financial planner Joe Saul-Sehy joins me to answer these five questions today. Enjoy!

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By Paula Pant

#294: Ask Paula – If I Were to Interview Suze Orman Again Today, How Would It Go?

Jeffrey is curious: if I were to interview Suze Orman today, would I agree more or less with her thoughts on the financial independence retire early (FIRE) movement?

Matt wants to know: if a property cash flows really well, is it worth paying significantly more than the appraised value to purchase that income stream?

Sara and her husband are returning to the states after living abroad for a few years. They’re moving to an expensive area where homes cost $800,000+. They have $150,000 saved for a downpayment, but a $600,000 mortgage isn’t what they had in mind. What should they do?

Eva and her partner are squirreling away money before the birth of their baby. They’d like to pay off their $90,000 mortgage in three years, but they’re afraid to use the money in case of unexpected baby expenses. What’s their best move?

Justin and his wife want to take a gap year with their children in three years. They plan to visit Spain and London for six months each. What are unexpected expenses that they should factor into their budget?

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

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By Paula Pant

#292: Ask Paula – I’m an Investor Who Likes Volatility; What Should I Buy?

Three Kids, FI has an all-equities broad stock market index portfolio that he’s held for years. He’s confident he can handle maximum volatility, so what investments can he lean into to that will provide him with great long-term returns?

Sarah is concerned: a financial advisor told her that investing in VTSAX over-indexes her in large cap funds and technology stocks. Is this true, and what should she do about it?

Alex’s wife lost her job due to the pandemic. They live in Washington state and are married filing separately due to his wife’s student loans. Can he use half of his income to qualify her for Roth IRA contributions?

Jordan is a new listener and he has three questions: should he use $100,000 to buy more rental properties or invest in a brokerage account? Should he and his wife upgrade their home and buy a property that’s worth double their current home? And finally, how can self-employed individuals who earn more lower the cost of health insurance?

I answer these four questions on today’s episode. Enjoy!

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By Paula Pant

#290: Ask Paula – Is Upgrading Our Lifestyle Worth Mortgaging a More Expensive House?

Sharon owns two condos that are worth $1.4M and has a cash cushion of $120,000 plus a $50,000 emergency fund. She’d like to move into a small house while keeping her cash cushion intact. Should she take out a home equity loan on her mortgage to essentially pay for her house in cash, or get a traditional mortgage and use her savings towards the downpayment? 

Jury and her partner are torn between two options: buying a condo, which would allow them to live off of one salary and invest the other, or buy a more expensive house – a much more attractive lifestyle option. Which should they purchase? 

Daine’s IRA balance is a result of 401k rollovers. He’s concerned that his lack of monthly contributions cause him to miss out on compound interest. What can he do to grow his retirement funds?

Molly and her husband want to reach financial independence (FI) in 15 years, at age 50. They’re unsure of whether their rental property income will sustain their FI lifestyle. How can they plan for this?

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

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By Paula Pant

#286: Ask Paula – How Long Will It Take Me to Become a Millionaire?

Kaitlyn has $78,000 saved for a property, but she isn’t sure whether she should buy a personal residence, a rental property, or both. How can she best use this money?

An anonymous listener wants to lower their housing expenses. Should she and her husband buy a cheaper property and turn their current home into a rental, or should they stay and pay off the mortgage as quickly as possible while saving for a downpayment on another property?

Alex is just getting started with financial independence and asks: how can you calculate your financial independence date, and how do you know how much you need to save to reach that number at a certain age? 

Ell wants to know: what’s the difference between a high-yield savings account and a money market account, and how can you maximize the interest you earn in these accounts?

Jenn wants to know: is it possible for Canadians to find cash-flow positive real estate deals, either in Canada or the United States?

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

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Afford Anything