Edward
Appearances
The Ramsey Show
Nobody Builds Wealth by Accident
Yeah. So, um, I'm looking to, I have an opportunity to invest in a house, um, in a small, uh, city in Western Pennsylvania. Um, it's, it's a rental and, um, I've never bought, um, just to give you a little background, if you don't mind about, you know, my finances, I'm 29. Um, I'm single. Um, my retirement has about 85,000 in it. Um, I have about 85,000 in cash.
The Ramsey Show
Nobody Builds Wealth by Accident
Uh, brokerage account in stocks and stuff like that is about 40. Um, I pull in about 4,400 for my day job, uh, a month.
The Ramsey Show
Nobody Builds Wealth by Accident
And then, um, and then I have a property of, uh, my own, uh, rental property, um, that I own. Um, and I do have a mortgage on that.
The Ramsey Show
Nobody Builds Wealth by Accident
The mortgage? Uh, it's about 83,000. Okay. Um, it's valued around like 175, 200. Okay. Um,
The Ramsey Show
Nobody Builds Wealth by Accident
Yeah, so I actually, I had another apartment and I was fixing it up and then I actually sold it. I was going to rent it out. So I moved back home to my parents. Okay.
The Ramsey Show
Nobody Builds Wealth by Accident
Yeah, that's like, I'm just holding that in cash right now in my brokerage.
The Ramsey Show
Nobody Builds Wealth by Accident
Yeah. I have a third opportunity that a friend gave me, um, Also, I think if you guys don't, I think you'll laugh at this. My rental property actually burned down. Oh, no.
The Ramsey Show
Nobody Builds Wealth by Accident
Yeah, no, rental properties are not passive income. I've learned that the hard way. Yeah. Got you.
The Ramsey Show
Nobody Builds Wealth by Accident
It's being rebuilt, but it's all good. So tell us. Yeah, it's being rebuilt. So it's fine. But anyway, so I have an opportunity to buy a small house for $44,000 cash. Wow. It has a tenant in there. They pay about $675 a month. The taxes and the insurance, I was told, are about $150 a month.
The Ramsey Show
Nobody Builds Wealth by Accident
It's being rebuilt. Okay. It's a townhouse. Okay. And I'm the president of the HOA board. Okay. I'm closely aligned with, you know, the construction process and everything like that.
The Ramsey Show
Nobody Builds Wealth by Accident
Yeah. I'm going to, I'll be moving in with my girlfriend this summer and we're probably going to rent.
The Ramsey Show
Nobody Builds Wealth by Accident
And, you know, just to end off, I totally agree, honestly. That's the wise decision. But, you know, if I was like a seasoned investor, Let's say I was like 20 years older and I had a large portfolio. Even then, would you think that investing in out-of-state properties is a bad move?
The Ramsey Show
Nobody Builds Wealth by Accident
Yeah, you know, I was going to put a loan, a mortgage in, I'm sorry, an application in to buy a house near me. It was severely damaged and everyone is I got outbid by a bunch of cash offers and went over asking. Like I can't even compete in this market. Yeah. Yeah.