Should I Buy A Duplex And Rent The Other Half? 

...cause at that moment... he wasn't better than he deserved.

😂

Proad god finally away with that annoying response

I scrolled down immediately to see if there was a comment saying this 😂

Proad i noticed that lol 😂

Unless you live in San Francisco

Depends on where you live

Some am I

If you're sick of it, the problem may be you.

easy to have six figures when its a combined income, 100k is just 50k individually and with a family 100k is not that much anymore. Easy to struggle with a family on $100k sorry to break it to you but inflation is a very real thing

They're debt-free except the house, can live off one person's income & and have a new baby - probably not really applicable 😉

To give Dave some slack, each person’s situation is different so advice will be different from person to person. And I think he would say the 3 jobs are so they can get rid of debt and have less on their plate. That being said, I think she can take or leave his advice about the duplex. In general the idea is great, the only risk is that the tenant is terrible and gives them a headache. But the savings might be worth it lol.

Also Dave’s haters: have 6 figure diet and a lot of credit cards.

While paying off your student loans

I think he advises that depending on monetary situation. This couple does not seem to be in debt hole.

There definitely was a period from 2016-2018ish where Dave was less enthusiastic. Maybe he had something going on in his personal life.

Ivar Losna making 100k and all confused lol

it doesn’t matter how much you make, it matters how much you SPEND

me too

It’s easier to owe more when you make more.

“400 k and don’t know what to do!”

I’m thinking of purchasing one but I’ll have a management company over it. I wouldn’t want my neighbor to know I own it.

Appreciation is always speculative, cash flow is better

That’s only if you can find someone who pays and when you don’t have someone can you afford the payments until you do find someone?

So u mean a single home is better than duplex?

@@Tameka_Whitewhy wouldn’t you want your neighbor to know?

Exactly

And again exactly!

😮😮😮34k???? And 91 people seem to agree?? HOW???? They must be single and with no kids.

@@otgenius rent: 10k. Utilities car insurance gas for car clothes etc. 10k. Food entertainment extra mechanic money in case the one car breaks down or the one minivan. 14k..... There I just gave you a breakdown on how a family of sometimes up to five Mom and Dad and three or four kids can survive on 34K take home.... It's not easy but it can't be done and it is done.

@@johnshaw3285 definitely not in Miami Fl... average rent yearly is already 28k over here...and the average Fl household income is 58k! No wonder most people (over 60%) are living paycheck to paycheck in this country.

​@The Artful Dodger Did you also have a baby and commit the rest of your life to someone via. marrage? Those are some pretty big changes that can't really be compared to things like work and school

You are not married and not have children maybe?

Different people not the same suggestions apply to you.

He doesn't like risk

Because Ramsey is super conservative. Unless you make millions like he does from his syndicated program and books, it would take several lifetimes to get extremely wealthy with his recommendations. Not take advantage of your company’s ESPP? Are you friggin nuts Ramsey? That’s a 15% gain at the time of purchase no matter what. Listen, this guy is awesome when it comes to budgeting and paying down debt but if you want to get wealthy, and are ok taking on a little risk, go elsewhere.

Shawna Kay yeah, but you always want more

Not here in California

Depends where you live. If you're in a big city or near the coast, 100k is barely making it.

Never settle. You deserve more.

I live in expensive Miami and can survive on $40,000 with a rent of $1500. They are living beyond their means.

living outside their means.. my 50k a year is plentiful enough for my family of 4

Sgt 0811 Exactly! If I made $100k a year I'd be retired in 5 years tops.

My wife and I lived happily our first year of marriage with 38k before taxes. We currently earn 52k after tax and are paying 58% of our income to debt (following the baby steps). Drives me crazy when people make near 100k and complain. I know it's all relative, but still.

Jared Schwyhart I know right? It's ridiculous.

Jared S I agree 😬😐

Oh I see. Ratings ha? Makes sense. If I went with Dave's real estate principles I would have never bought real estate.

Exactly. It is not an apartment complex where it is first come first serve for low cost housing. This is a house. Start with, demand a credit check. This weeds out 90% of the bums.

That is why you screen your tenants and do not just pick the first one in the door(irregardless of the law). I would think differently if this was an apartment complex(first come first serve and low cost). It is not. This is a house.

Will Dave ever call out women’s tendency to initiate divorce, creating much of the financial ruin? Nah, he will blame men like everyone else

I am a landlord living next door to two tenants. I have a triplex and it sucks. First off, we share a washer and dryer so we have to work around each other. Second, if something breaks they come knocking on the door and they KNOW I'm home so they expect me to fix it right away.

@@Recabilly Shared spaces = DUMB. As for maintenance: it is called PREVENTIVE maintenance. Stop costing yourself money by being "cheap" AKA expensive. Far cheaper to go through all the plumbing and redo everything at once than doing it piecemeal. Never have to touch the plumbing for 10 years. Same goes for all outlets/switches. As for lightbulbs, put in contract, renter is responsible for them and MUST be the same bulb replacement. Garage door? Grease it once a year. Same is true of EVERY door handle. Do it once and will be good for at least a decade if not forever. Have 2 hot water tanks etc. I have NEVER had my neighbor rentors come knocking on my door because something was broken. Have had plenty of meals with them though. Stop being cheap. It makes your life VERY expensive in angst.

@@w8stral We completely redid the restroom because they broke the sink and they shoved stuff under the sink so they broke the pipes as well. We decided to fix up the entire bathroom with new stuff because of this reason, we don't want to fix things every other week. We told them not to put anything under the sink, we even made the doors hard to open to discourage them from putting stuff down there. They broke the sink again just a couple weeks later. I am so done with these renters but guess what? They are my wife's family... We are kicking them out this December, giving their notice soon. We need to do screening, really find the right people to live here. We do have two water heaters, plumbing was a disaster because one of their kids put a baseball in one of the pipes! Cost $2k just to get that ball out cause nobody knew what the problem was so they had to tear up the concrete and find the problem.

It is for those people, and his advice isn't even the best advice for those people sometimes.

nailed it. if you have no self control and need someone to tell you what to do he's great. if you need a few pointers but also have ambition for business, it's easy to outgrow him

He takes NO risk... it's like he wants you to build wealth without investing...just put away all your money, don't travel, don't get a car... just save save save baby!

well, those happen to be most of the people that call in for his advice, so maybe he is answering the person who called as well as the people who are listening.

SuperOkfine you have no idea what you're talking about

You find out most “gurus” of anything have one specialty and usually are not capable of helping most people, just a select few that fit they’re specific niche. Which leads to misdirect of many, and swaying or demotivating some off a good path. Always trust yourself and do your own research and critical thinking to capitalize on calculated risks. For example: Someone might tell you slow down cuz that’s their mood and they’re overwhelmed, but it might be a period in your life where you got tons of momentum, energy, and enthusiasm and that fire is gonna launch you far ahead quick.

@Damon Wayans She's a pharmaceutical sales rep......

PHX2PDX if she’s bumming off her husband bad, if she’s thinking up ideas and contributing now she’s running the show and bad. When do you appreciate a woman

What a beta!!!

What she didn't say is " we have a nanny so that I can go do all these projects".

let them sit there. accumulate equity enough where you can buy a new property CASH!!!! and thats how you do it!! but then again the banks will own them forever.

I wana buy a multi family any tips?

@@Vera-dg3hfyou must be broke cause that is not what you do. Never use your own money.

What do u think about buying a duplex and putting a mobile home for yourself to live in it and rent both sides of duplex

@@HutchysLIVEthat could work.

He didn't say not to, just to be patient and build some stability before throwing more changes into their lives. Pretty smart advice, actually. Letting her husband pursue his new career for a year and get used to it is more realistic. If he's constantly busy with stuff outside work, he will lose focus on his job.

But that duplex offer will be Gone soon !

@Pat De So what? There are houses everywhere. If this one sells, there will be another. Don't fall for the realtors hype.

Dave is always wrong when it comes to any type of buying real estate period

ducksinarow 100 if he is always wrong then I don’t want to know what’s right cus he has made millions buy real estate

He's saying don't put the cart before the horse. Everything looks good in idea and planing....but people fail to execute sometimes because they either do to much...or just get ahead of themselves. Buying a duplex in 4 years may seem like a long time....but if you think about owning the duplex for 30 years.....then those 4 years don't seem that long at all...thats what he's trying to convey...not to stay average. Just hedge your risk if you can.

That's not statistics work

Dark Magician average is a number expressing the central or typical value in a set of data. By definition 50 percent of people are avg. Also what does Bernie have to do with anything, I'd never vote for him. Way to get political on something that isn't

Dark Magician you wouldn't call them outliers on the curve?

Dark Magician so you really don't know stats haha.

Facts

Spot on John Doe. You just solved it

Eric award how and for who? Parents own three multi families and thankfully bough over 25 years ago and got the properties for very good prices. Rents have sky rocketed and they fortunately owe no mortgages accept for one that went to home upgrades and live in one of the homes with two other tenants. They are doing way better than most Americans. Remember anything worth having, is worth fighting for. So a little or a lot of awkwardness is just a temporary thing for long term gains. Just saying

Oh and one last thing. Rule number one of law lord/ tenant. You have to observe your properties, because there are horror stories where as a landlord you were lax and than your place is being torn apart.

Exactly

jay c but..... where would I live 😫😂

@@prodigyam5078 rent a home away from your rental..something thats even cheaper

Better yet get 4 units or more

jay c and where does one get all this money?? 😂

Kid-City Child Development Center I listen to the podcast. It’s a good way to understand the reality. Something tells me they do.

Britt Smith, same here. Get $1400 a month.

Sounds good

That’s actually illegal Lolol

@@Sinbadness how?

They need to change all those Duplex (upper and lower) in Milwaukee to single family houses.

Or side by side

@@HiiiGHLIFE1 If you are going to live there it is not an "investment" property and therefor does not require 25% down. However, put down as much as you can as your income profits will be more (every month).You can do a standard mortgage and your $15K down should be plenty. Start with calling your bank, they want your mortgage to be with them so they will have several types of loans for you. Build a relationship with your bank, they will be quick to help on your next adventure.

Ledezma Finance while that is true, the majority of the people that seek Dave’s help are in bad financial situations, so Dave’s advise to those people is to take it slow and steady until you get out of debt.

Jeremey Allen The way Ramsey thinks is the slow way to wealth. I notice every time somebody talks about real estate investing, he says no almost every time.

Jeremey Allen Agrees. House hack this thing. I think you can even get into these things with 0 money down. If the situation is applicable then its a no brainer.

Dee Patterson, I noticed the same. Wonder why

If I took any of Dave's advice that he gives these people who call, I would have never bought real estate. And today I'm making good money and no longer have to work a 9-5 job

Because real estate is very valuable when levered using Return on Equity. If you pay cash for a house ROE drops. But buying a house letting someone else pay the mortgage and then selling has a lot of value. Dave isn’t really intended for those who aren’t financially troubled.

and it's almost always women

Its bragging

HermannTheGreat yes, sounds like it with the laughing and hyper speech.

Yeah, that is my opinion, Dave doesn't get that he is being Trolled.

After being a financial advisor for the last 9 years. I have seen a lot people inheriting hundreds of thousands of dollars. Millenials are set to inherit over 30 trillion over the next 30 years

SuperOkfine what happens when they don't pay rent? and how long till you get the renter? and what if you get a bad renter the more they can bug you? they make enough they just need to manage there money

alex grinage Kick em' out. Bnb the place until someone comes so you can make money while vacant. Kick em' out. Do you not know how capitalism works?

SuperOkfine Tax credits for owner occupied income producer property is appealing

SuperOkfine you missed his point. He doesn’t think the concept is bad. He just thinks the timing is wrong for them. Newly married, new baby, new new new new......they don’t need tenant issues next door when they are trying to establish themselves as a family. As long as they make good choices, the duplex opportunity will always be around.

justin hill yes, 💯% what Dave was saying. Some people definitely miss the main and most important point.

Your kid gets to socialize with other kids and a teacher figure from a young age.

Exactly! Tons of ppl get started this way into real estate

That’s fine buying a duplex and having you renters live next door if you don’t care. I guess the question is, if your tenant doesn’t pay, can you make the whole mortgage payment with 25% of your take home income? And the downside of getting ready to sell your duplex is that the typical buyer of a duplex is an investor and not an Owner buyer occupier, and they have the tendency of to buy whole sale v retail sale

That's what I did too. I have 8 tenants and no longer have to work a job. I do take care of my houses though. Cleaning in bettween tenants, finding tenants, fix things that go wrong, etc. Easy work if you want to call it that. My tenants usually stay for years.

He was telling them to slow down because they are adjusting to alot of new situations. And to get on a budget because she seems to not be able to budget well if she doesn't feel they can live on their current budget. I'm sure 6 months to a year later they would be mentally and emotionally ready to get a new house and deal with a tenant. It's not always about if you have the money,sometime you can stretch yourself too thin n become overwhelm and mess stuff up. It's better to become accustomed to being newlyweds and parents first then tackle other things .

Your comment about typos has a typo.

yes thats the beauty in it

Life With Steph Explain how a typo is beautiful to you? To me a typo is a mistake and a mistake is not beautiful and making a similar mistake, in replying to a mistake, is additionally worse and even more problematic, in my opinion. I think mistakes are not beautiful and there is no beauty in making a mistake; while commenting on a mistake; which I think is a usual and normal and reasonable and understandable reaction or response to such a situation. If your comment is genuine; then you appear to have a very different and opposite mindset and perspective on mistakes and I would be sincerely interested in how you come to that way of thinking or perspective?

ementormike Your comment is rife with the misuse of the semicolon.

D K hear hear

Agreed. You couldn't have paid us to put our kids in daycare. At best, the kid is ignored throughout the day. And those people can't love your kid like you.

Exacly, I make 35k, own a house and still have plenty of disposable income. I would live like a king on 100k a year.

Sounds like you don’t live in New York City, or the Bay Area. Besides, what’s comfortable to you, may be the proverbial poorhouse to some. Judging off the call it sounds like these people have their finances together. The world is a funny place.

I can't imagine living comfortably on 67 k for two..that's just under 34 k per person

TheTez1990 I live in L.A. county and make 50k and live comfortably with enough to fully maximize my Roth IRA every year. Just saying.

Christopher Peery no its not about showing off riches continously trying to think of ways of creating money. Poor doesnt care.

don't forget 8k in quarterly bonuses and no debt.

you have to take into consideration inflation. the 73k is not worth the same n the following year and thats where the problem is.

In this case, Dave's an idiot. Most people can walk and chew bubble gum at the same time.

Yes. Buy the duplex. Do the work yourself.

The dismissal of the ESPP was silly. Don’t put everything you own it obviously but don’t miss out on free money when it comes along.

Gazelle intense is only for while you are in debt. The hungry cheetah is the debt. No debt, no cheetah, you get to relax a bit.

I buy individual stocks so thats the part that I disagree with Dave. You could just max the ESSP and sell as soon as you get it awarded.

+Mathgasm yea it's just +15% pay lol

Christopher Banacka said he

Yeah, it's as close as you're going to get to an arbitrage situation.

If you could do it that easily then everyone would buy then immediately sell the stock. But a lot of companies have it setup so you have to hold fir a certain amount of time.

If you are renting your duplex out, you should know who is moving next door. As for the child being at risk, I don't understand how. You should always watch your child, and to be sure, don't allow them to go to the neighbors.

Why not 😂? I live next tenants I wonder how they feel.

KHAALIQ LAMB. I wonder, as well. I prefer my life be mine and judgement free by a person who might personally disagree with me. And who holds that sacred lease over my head.

Lindalee Law and they probably wouldn’t want to live next to you.

I get the feeling that you are over 50

I hate landlords having keys to my apartment. Also coming in constantly to repair something. I wish one day I can buy a house and be the only person with the keys to my own home.

That's just a side effect of Dave's opinion of single stocks in general. He believes they're too risky.

good point there

Carol T. Nope, probably 90% of my trades happen with the SPX/SPY, which are what people that invest conservatively use.

How the heck are you making 20% off of SPY, year after year (that's the key)?

Where are they making 60-80k off 400k?

Her house is her biggest asset right now. You can’t make money with that.

You are right. Real estate is the best investment in my opinion. You need a place to live anyway. Rent a room or two out for extra money if need be.