Taking Care of Business: If you haven’t already, go enter for the giveaway we’re having! It’s so awesome you won’t be able to believe it!
I am so excited because a new show just came out on A&E called Flipping San Diego. I gotta say A&E is really getting up there with things, first with Duck Dynasty and now this! Of course we’re going to watch every single episode, and when the hosts Chris and Chief retire, Kyle and I will take over the show 😉
We haven’t watched any episodes yet because we don’t have cable and we usually watch everything online, and it seems Flipping San Diego full episodes aren’t being put online, so we’ll have to wait until that option arises. I can’t wait!
Kyle and I were talking about how hard it must be to flip houses right now, not because there aren’t any buyers (because there’s a truckload of buyers out there what with the low mortgage interest rates we’ve been having), but because there’s so much competition among all the house flippers trying to snatch up deals on crappy houses.
Kyle and I are pretty much in love with anything that has to do with real estate and turning crappy houses into beautiful homes, and we can’t wait until we’re able to do that again.
Right now we’re pretty much on a 4-5 year plan to get that ball rolling again. First we have to wait until we’ve been self-employed with steady income for 2 years. Which is basically about 18 months from now. But the problem is that the way we do our taxes and writing things off as legitimate business expenses, it doesn’t show we’ve made much profit at all because almost everything we spend our money on can be considered a business expense. Apparently the loan people judge you based on your profit according to your taxes, even though half of our home is a tax write-off, and pretty much always will be.
So we either have to not do any tax write-offs, and pay a bunch more in taxes in order to be able to get a loan to buy a house, with less money to afford it because we paid more in taxes, or we write-off business expenses and are more able to afford a home because we spent less in taxes, but the lenders won’t qualify us for a loan big enough. So it’s like a big catch 22. It makes it hard to decide what to do. I guess it mainly depends on how badly we want to own our own place.
The other option which I’d like to pursue is purchasing a multi-unit property and becoming landlords. There are two sides to every story, some who say that it’s horrible to be a landlord, and some who say it’s a good investment. I think if you’re smart, being a landlord should not be a problem, and over time, it could be one of the best investments you can make. And when you get a loan for a multi-unit property, they count potential income from renting those out as income toward qualifying for the loan.
Kyle and I already went through a situation back in 2008 with our realtor who said we could qualify for a $350,000 house, when really we could only qualify for a $250,000 house. So we’re pretty savvy when it comes to things like that now, and we know that no matter what you qualify for, you should buy something for LESS than you qualify for.
Luckily being self-employed writing off taxes, Kyle and I will always be able to afford more than we qualify for, so we will never really have the problem of worrying about being able to pay the bills on any mortgage we are actually qualified for.
When we first moved to Imperial Beach there was a 4 unit property about a half block from the beach that was going for $750,000. Three of the units were fully remodeled and one was halfway done being remodeled. Those 4 units could have easily been rented out for $1500 a month each, giving us a $2000 per month profit (some of which would go toward things like repairs when needed, etc of course). When I found it, I noticed it had been on the market for almost a year, and just a few weeks later it was sold, so it was too late for us to even think about making a move. So apparently God didn’t want us to become landlords just yet.
I do know that God has plans for every one of us, and sometimes things don’t happen when you want them to because it’s not the right time. God knows when it’s best for something to happen, and if you’re not happy with what you already have, why should He give you more? So the key is to want what you have instead of trying to get what you want. Be content and grateful.
I really like where we are in life right now, but that doesn’t mean I’m not going to plan for the future. People say that people make plans and God changes them. But if you don’t have a plan at all, you might end up living on the streets, lol! God might like some of our plans, and if He does, He will see them through to fruition.
The Final Word
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