"Whateva! I do what I want!"

That’s life don’t need to do everything everyone tells you to do

Nice to be making money, paying mortgage, fixing up her home, living with mom and grandma because in her mind all is good. She can't handle the reality that she is wasting her money paying the mortgage on a house she wants to rent out. Things were all right till Dave burst her bubble. 🥺😅

That's the point that she fails to get

With $5 million, one wrong move can have significant consequences. It's crucial to invest cautiously and diversify, with 40-50% in safe investments. Given your budget, I recommend considering financial advisory services.

Absolutely! Most undervalue advisors, but their expertise and risk mitigation strategies are invaluable for savvy investors. For those with busy schedules, monitoring the market is challenging, so we delegate to experts. I'm currently working with one, and my portfolio has grown to $1.3M, a 25% increase from last year, with robust diversification and inflation hedging.

This is mind blowing! As a young adult inheriting about $500k and new to stock investing, I'd greatly appreciate it if you could direct me to your advisor. I can't afford to make costly mistakes.

Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

Congrats.

Literally that’s where she messed up I live with my grandma cuz I help her Dave makes no sense sometimes

Yeah, when she said "I didn't have a plan", I thought uh-oh, Dave is about to give her hell.

Yeah it what bothers me the most about his boomer mindset. This idea that every unmarried adult should just live alone is asinine. Maybe the whole loneliness epidemic is because of that. Unless you have a spouse and children of your own, it’s better to live with loved ones. We aren’t meant to be alone is humans

They use buzzwords like "outdated", "freshen", "more modern" to justify spending tons of dough to simply change the aesthetics of something that still fully functions.

I agree. A lot of the time, a new paint makes things livable. It's cheaper than a whole kitchen renovation, etc.

She'll make it all fancy and then the renters will destroy it in short order. That caller is so clueless it hurts my brain!

@@bobbylibertini you run a credit report and vet renters so this doesn’t happen. People would never buy rental property if this was this case

@@kathypatterson6813 It happens every day, even if one is diligent. My uncle used to rent a house out to teachers from SUNY on Long Island...good credit and all..they did $30K worth of damage which he was never able to collect for. Ditto a couple I know who rented the extra unit in the 2-family... A long time family friend was the property manager for a large modern apartment building- she'd handle the court cases. The stories she'd tell detered me from ever becoming a landlord, which I had ambitions of being as a teen and in my 20's. The landlord ALWAYS gets screwed. My late friend in FL had 5 rental houses....the tenants would steal the appliances after not paying the rent for months. Cops: "Did you see them do it? No? Nothing we can do". If similar things haven't happened to you, either you haven't been a landlord very long...or have been extremely lucky.

That’s not an abnormal mortgage in California or DC

@@kathypatterson6813 but $3600/month is abnormal to be paying on an empty house for 2 years.

3600 a month sounds very high on 96,000 a year

Poor girl has a first class Titanic ticket! 🎫

Yeah, she sounded like a real dolt.

That's me exactly..... "At least I wasn't THAT STUPID!!"

She's living that bossbabe tiktok landlord life where she thought she's just buy a house, renovate, and then live with passive income. Instead she has an albatross of a mortgage while failing to move out of her own mom's house.

​@@Sizukun1well evidently she doesn't _want_ to move out of her mom/grandmother's house. Yes hee mortgage is ridiculous however with the housing market like it is in her area now she will still likely come out far ahead from what she paid for it despite having had no money coming in on it for the past 2 years.

@@PrimateProductionssomebody gets it. DC is very stand alone in real estate. Even in the worst areas she’ll still make a profit when renting AND has likely increased equity around $100k over the past 2yrs

Agreed. The bottom line, is being a landlord is extremely smart. And living with your parents for free, is also smart. If they let you. It sucks she’s paid a lot of mortgage payments while the house sits while doing renovations, and she probably should have found a better contractor to work faster- yes, but at the end of the day, being a landlord does pay off big time. Dave Ramsey is wrong here

@@Sizukun1 Exactly. She likes being able to say she's a landlord/real estate investor...but she's spending 60% of her take home pay on a property that hasn't made her a dime. What a moron.

bUt YoU’rE jUsT a gReAdY lAnDlOrD wHo dID nO wOrK aNd mAdE aLL pRoFiT!!! 😡

true, many people think being a landlord is easy money

I bet you want to scream when people say "passive income". 😂. I sold too.

@@treasurethetime2463 💯 The world lies to us and we fall for the lies. Plus doing it all alone sucked. You need a support team on the exact same page with you.

Non-homeowners just don't see homes like homeowners do.

How did you find your contractors? Did your first contractor demand some money upfront?

@@misformargaret4028 My father in law had some connections - the first one was just a poor one I guess. We didn't have to pay much upfront for him, fortunately.

She makes 96k. So that's 8k a month. Maybe like 6-7k after taxes and deductions.

@@jimmymcgill6778 No, at 96k salary she’s paying about 30% in taxes. Maybe 28% if she’s lucky depending on her local taxes. At 28% taxes, that’s $5,760/month left, not including healthcare and retirement. So after $100 towards healthcare premiums via paycheck deduction and a paltry $150 for retirement, that’s $5,500 take home. The only way she’s paying substantially less is if she has children and is getting the child tax credit. Otherwise 30% overall is the norm for a single person making 100k +\- 2% depending on whether you’re living in a blue or red state.

​​@@jimmymcgill6778I make 98k. After taxes and all deductions it's around 5-6000 a month take home. Or less depending on how much goes into 401k and other deductions.

@@Julian-zc9vm Read what I wrote. I said 6-7k after taxes and deductions.

​@jimmymcgill6778 Your math is incorrect. The tax rate in Washington D.C. is 29%. Meaning at a maximum she's taking home a little over $5600/mo, if you don't deduct for healthcare and retirement. Subtract the mortgage from that and she has at max $2000/mo to pay for everything else. She's needs to either sell the house or get a tenant that doesn't mind a little construction ASAP. That house was out of her price range.

This is SO wise, thank you for sharing!!

@@vale_rawrrrx3593 No problem!

She gets to tell her friends she's a boss babe with real estate investments.

I'm single/no kids & also earn $96k/yr. I own a home, but my interest rate is 3% on a $100k refi, so I get ZERO mort int tax benefits, & ZERO other tax write offs, since my tax write offs are lower than my $13k standard deduction. I live in CALIFORNIA, & my net take home pay is $6450/mo (& Ca st tax is HIGH!). My combined Fed & St taxes amt to under 19% of my gross income. With HER HUGE home mort int rate tax write off, she's probabably netting $7k/mo. HOWEVER her Mort pmt is WAYYY above the 28% mort/net pay ratio which is universally considered "affordable mortgage" (hers is ~50%). So YES, she NEEDS to SELL this house, NOT rent it, NOT live in it!

She likely acquired the home with a huge interest rate and convinced herself of a grand plan to turn this into a handsome revenue stream. Unfortunately, her math is fuzzy and she would probably still not take anyone's advise.

@@ministryoftruth8588 you have the Republican 2017 Tax Act to thank for that, which capped the mortgage interest deduction write off at $10,000. Republicans knew this only affected blue states like California and New York.

I just did the same thing on my calculator if that’s her take home it’s 45% and if it’s her gross it’s probably 65% of her money going to a mortgage she doesn’t even use. Even if she did live there she would be better off selling it.

But tik tok makes it look so easy 😢

That’s why they call. Are you new here?

@@kay22100 I’ve been watching Dave for about 10 years… chill out

That's the normin America.

Exactly.

Considering how crazy hot the housing market in Washington DC where she is located is right now despite having had zero income from the house for the past 2 years and having had to put some money into it via mortgage payments and updating/repairing it she is still very likely to come out way ahead if she sells it right now....far more than she would have made by otherwise investing that money!🙂

​@@PrimateProductions Unless she plan to go through a broker for vetted high end renters, she's better off selling it. Get the wrong tenant and you can lose all the money you put into the house.

It sounds like a money pit.

@SayianWizard DCs TOPA laws means she has more protection than in many states. All of that squatter foolishness is moot. She has a single family home and TOPA does not apply. She need only give a 30 day notice and the tenant is out without a legal leg to stand on. You are correct if she had a MDU but the laws are different for single family here

lol she doesn't have the money to do repairs and hasn't had tenants in 2 years. There's nothing else to ask

More than $4500 a month...to also cover taxes and insurance too..... Even someone who knows what they're doing couldn't make a profit on this one. Actually, people who know what they're doing don't buy single-family houses as rentals. People who really know what they're doing don't become landlords...period!

@@mannyjeanpierre4062 disagree! She was skeptical of their responses; that question could've helped her understand what she really was trying to do and how futile it was.

You’re only making $18k a year. If it’s worth more than $200k, you can sell it and put it into a mutual fund that makes 10-12% which is $20-24k a year

@@timchow924 I worked at an Auto and Home Insurance Company in California which had a 401-k and a 401-k Roth for 24 years. deposit15% and 8% saved money and retired early. Still growing in both, also SSI and a Pension. I am making $3,700 a month.

Please dude! I have a 401-k and a 401-K Roth. I have them both for 24 years now. I retired early from an Auto and Home Insurance Co. in California. It is in the top 50 best jobs to work for, listed in Forbes Mag.

There was a news story about a house that was built and never sold for over 20 years. The house was still in great shape.

@@strangeroamer3219 Only if the heat and a/c was running constantly and people were going in cleaning it periodically for 20 years. Even then after 20 years it will need a new roof and windows soon because the sun destroys shingles and window seals.

Not just that, but insurers won't insure a vacant house- or if they do, the rates are outrageous. She's either hustling the ins. co. or doesn't have any insurance. Either way, if the place burns down, she'll never collect.

Can you imagine if squatters moved into HER place? She's got enough problems with this place already.

The other half is I bought a new car

nah it's truck payments.

3600x24 = $86400!!

@@novakd1530 that is crazy!

💯👍🏾

This lady SHOULD have been. She missed out on over 80K in 2 years

But if it needs repairs she wouldn't be able to get a quality tenant willing to pay the $4500/month to cover the mortgage, taxes, insurance & maintenance to make it profitable.

@@megalodon1726 But she could have put someone into the home paying a good chunk of the mortgage. This would have allowed her to build up funds while the tenant was covering a piece of the mortgage and when the tenant moved out do whatever updates and repairs she could afford with the money she had.

or living in it. Absolutely crazy.

If one of my properties wasn't tenanted for 2 years I'd be freaking out!

She’s made at least that in equity

@@whosaidthat9265 Only if she sells.

​@@whosaidthat9265So she's broke even. Pretty sure the whole point was to make profit. Which she could have for the last two years if the house really was habitle like she claimed it was when she bought it. 🙄 Woman needs more than financial help, she needs guidance in several areas. Dave wasn't the right person to call.

Nor should she. Dave's advice is nonsense here.

@@OtisFlint Have fun being broke.

Why a white one?😂😭

Don't forget the vig for the insurance mafia.

The point was to do what...withdrawal money early from a 401k 🤣

Good income*******

She’s in DC. 96k is basically doing “ok” there.

She has a govt or NGO job. She didn't earn it.

@@TRC296 tell that to people earning 40K there

Dentist here. I’ve heard that doctors are among the dumbest with money, and I agree. I know a handful of colleagues making over $250,000 who are living paycheck to paycheck. Income and titles don’t mean squat when it comes to financial education.

…? Her grandmother certainly isn’t contributing financially, she and mom are caring for her (probably physically + financially), which is a very heavy burden. My mom is doing the same. It’s sad, but when grandmother passes, things will actually get much easier.

Her mom isn’t 95

Exactly. Also, the taxes and expenses.

Over the past 2yrs in DC, it definitely has appreciated in value by around that amount. Easily

That is exactly what I did. Bought VOO is 2022 and I now have 100k sitting in liquid assets still growing.

I will take a free house in the DC area. Of course I will sell it immediately

😂😂😂😂😂

ok boomer

She's in DC

@@analyticalchick3064 So?

​@@analyticalchick3064should be making double what she makes to own a home in DC. Or be married with a combined income well into six figures

Not true. Her home value over the past two years has likely increased $100-150k over the past 2yrs in DC. Mine has.

​@@whosaidthat9265yes exactly this. I would think if she sold it now she would come out far ahead of what she paid for it!

My ~$500K home has a $214/mo mortgage. We have no Numbers. ???? The $8 MM house rents for ~$25K/mo. We have no Numbers.

No, no, no! It has to be a mint palace for the new section 8 tenants, so their spawn will have nice clean walls to draw on, and nice floors that'll scratch easily!

She's probably legally required to fix or replace the HVAC before renting it out.

@@megalodon1726 You are not legally require to have AC in a rental. A window unit is just as good.

@@bobbylibertini She said nothing about section 8.

@@jimmymcgill6778 depends on state and local law, especially if the house was already equipped with an HVAC. And even if she got somebody in there who would tolerate a window AC, it's not going to be a high quality tenant who will pay over $4000/month and not trash the place. Reliable tenants who can pay that much will have options for other houses with a proper HVAC.

she basically got ripped off ;(( for 800 sq ft house ;(( did you have at least 3 estimates??

I also wonder if she got an investment loan, since the house is not her primary residence.

@@wrecklisseve Do they have a homestead exemption in DC? If so, she's likely missing out on that, since she's living elsewhere.

What are you talking about? There is no way you could discern that based on what we heard in this call.

@@PrimateProductionsyou buy a house you don’t live in and can’t get it repaired for 2 years while you’re paying a mortgage not making any profits while choosing to live at home? It doesn’t take much to decipher this. My comment was also sarcasm btw but an inkling of truth.

Or those HGTV shows where the house is renovated in record time. Yeah, sure, if you have a team like Chip and Joanna can afford!