TeacherFI101

Just a teacher learning and sharing on his FI journey

[TeacherFI101 @TeacherFi101]

@theficouple Bought from an older or deceased owner that was on a tax freeze? Same thing happened to me when my 1st rental mortgage increased from $564 to $717 a month and I owed $2600 in escrow shortage.

Be aware of the status of the seller before buying! Thankful we had big margins.

[TeacherFI101 @TeacherFi101]

@basic1_basic @mhp_guy Is this supposed to be good or bad?

[TeacherFI101 @TeacherFi101]

@RyanAFaber @AboveTheGods_ @JoeTegerdine @mhp_guy You also have to take into account that other counties have academic and vocational tracks. Only the academic tracks take these international tests. Whereas in the US all students get traditional K-12 public school education. It skews data.

[TeacherFI101 @TeacherFi101]

@andrewdbreck @mhp_guy Teacher pay could solve many problems. Make it a marketable career and get more people wanting to be a teacher.

In the US schools are seen as a customer service business and not a public service. Look at the top rated countries. They value teachers and pay them accordingly.

[TeacherFI101 @TeacherFi101]

@RyanAFaber @circleseer @mhp_guy How can you possibly make a generalization like that? There are schools all over the nation that are phenomenal.

[TeacherFI101 @TeacherFi101]

@thewealthdad @BTInvesting10 That is exactly where we are right now. It will be mostly a cash purchase because the rates are so wild. At least every month is another $1000 in equity at 2.25%

[Ramit Sethi @ramit]

Different ways to become financially successful

1. Rent + save + invest in investment portfolio
2. Buy rental properties
3. Start a business
4. Buy house + save + invest

(You can mix and match.)

Which one do you choose?

[TeacherFI101 @TeacherFi101]

@AdaptiveTrader @talkstough @ramit Because they like to be contradictory when they have literally 0 reason to believe 4% returns other than speculation. “I anticipate 0-1% returns!”

[TeacherFI101 @TeacherFi101]

@RatesGuru @theficouple Agreed. There is always risk involved.

[TeacherFI101 @TeacherFi101]

@RatesGuru @theficouple P2: and would have to drop rents to nearly $1000 dollars a month to begin having a negative clash flow. So rental rates would have to drop over 35% in your specific market to start being in trouble. That just seems unlikely in my market.

[TeacherFI101 @TeacherFi101]

@RatesGuru @theficouple P1: I agree and see your point. More homes on the market can reduce both home values and rental rates. As long as your margins are large enough I would hope a drop in rental rates shouldn’t tank you. For example if I’m renting at $1600 a month and cash flowing $600

[TeacherFI101 @TeacherFi101]

@RatesGuru @theficouple P2: for the next 5-10 years if I’m still cash flowing? I mean obviously it’s not optimal missing out on appreciation but I’m still making payments and collecting rent. I’m not saying that it’s good for values to drop but I don’t get how that would destroy the long term investor.

[TeacherFI101 @TeacherFi101]

@RatesGuru @theficouple P1: Maybe I’m a complete moron but I am truly trying to understand your position. If I am cash flowing 500-600 bucks a month on a property that I bought for 100k on a fixed rate 30 year mortgage that I plan to hold for 20-30 years why would I care if the value dropped to 20-30%

[TeacherFI101 @TeacherFi101]

@chernobelskiy Anyone call their lender to pitch this idea?

[TeacherFI101 @TeacherFi101]

@RatesGuru @theficouple Some say values will be cut in half. Others say values won’t be much of an issue because there isn’t enough inventory. We don’t have a crystal ball so who knows what will happen. All you an do is make sure your numbers cashflow and appreciation is the cherry on top 🤷🏻‍♂️

[TeacherFI101 @TeacherFi101]

@RatesGuru @theficouple If you’re cashflowing and trying to hold long term does it really matter?

[TeacherFI101 @TeacherFi101]

@FranDuggan @sweatystartup Hey follower the best way to get followers it to pay me $20 bucks 😂

[TeacherFI101 @TeacherFi101]

@ramit @ChooseFi And of course Coach and Brandon at @Getfiteducator

[TeacherFI101 @TeacherFi101]

12/31/21: Our net worth was 401,732 (unmarried couple 28)

12/31/23: our net worth will be around 625,000 (married couple 30) here is what we did to grow our NW

[TeacherFI101 @TeacherFi101]

We are on track to be NW millionaires in a few years and have been able to enjoy the ride along the way.

We do not have financial backgrounds or have inheritances. We have just learned from people like @ramit @ChooseFi & the FIRE Reddit