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    #16
    I'd talk with an attorney and tax professional on the LLC. There should be a way to structure them so the bank won't call your loan.
    Brian

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      #17
      $15K in credit card debt plus the student loans is a huge amount of debt and with the loans on your properties is over $850K that is a lot of money to be owing. I'm not understanding what your reluctance is in paying off the student loans.
      I do not want to pay off student loans as they're my longest credit line.
      How does the student loans help you by being your longest credit line? I would focus on paying down all that amount, because take away the income from the properties, you aren't making that much in income. Just because someone SAYS the love the place they are living in, why haven't they bought it? It is just as easy to move out to find some other place. You are clearing on average about $270 average. A couple of move-outs in the same month would put you in a bad money crunch especially if it took longer than a month or two to get back up to full occupancy. You seem over extended currently.

      Have you posted here before? Your story sounds very familiar.
      Gailete
      http://www.MoonwishesSewingandCrafts.com

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        #18
        Originally posted by Singuy View Post
        You earn $2,418.00 after expenses right?
        Correct, will be more as 7 are only rented currently, 2 more will be rented soon as tenants are moving in mid April.

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          #19
          As far as connecting with other like minded people, if you haven't checked out Mr. Money Mustache, that's a good place to start.

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            #20
            Are you on Bigger Pockets?

            Put yourself out there on their forums and several people will connect with you within a few hours.
            Brian

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              #21
              N - one additional thing to consider is the return you're getting on your investments. A couple of percentage points higher over a sufficiently long period of time can really make a big difference.

              Here is a very over simplified example:

              Lets say you had $4,000 to invest and you found a vehicle that paid you 3%. Compounded semiannually at the end of 5 years you'd have $4,642.16.

              If you took that same $4,000 and invested it at 5%, at the end of 5 years you'd have $5,120.34.

              So, all things being equal, a 2 percentage point difference in your returns would give you a $478.18 dollar difference over 5 years. When you consider the amount invested in this example ($4,000) - the difference starts look pretty substantial.

              A lot of newer investors chase yield. That is, they buy shares in a hot fund or pile on to whatever latest asset is getting lots of press coverage. This tends to be risky and often doesn't pan out.

              However, a good way to increase your effective return is to reduce expenses.

              A few ways to do this are:

              1. Buying low cost investments
              : Index funds or no load mutual funds are good example of low cost investments.
              2. Going with discount brokers: There are many new Fintech companies that have driven the effective cost of executing trades to just a dollar per trade or less.
              3. Going DIY: The more you manage your own money, the less you have to pay someone to do it for you. For example, you can execute your own trades online, rather than call a broker to do it for you.
              james.c.hendrickson@gmail.com
              202.468.6043

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