Can I really afford a BMW?

[JasonCSU]

Originally Posted by Flying Ace

why does he have to buy a new car? Depreciation is a bitch...50% in 3 years on average for almost every car.

Seriously, I'm not joking, he should buy my E90 M3 with 52k miles for $30k. That car may depreciate another $5-10k in the next 2 years, and then hold steady from that point on.

He certainly doesn't have to buy new, and including used cars in the search opens a wide array of options such as your E90 M3 which would definitely tempt me if I were in his position. I just figured I'd throw a few new car ideas out there that are roughly half the price of the new M3 he is/was considering.

[shoei]

Originally Posted by kprocivic

it's a bunch of savy people in this thread. It really trips me out when I hear the default rate is close to 30% on student loans.

I find it even more hysterical when pay day lending were doing 496% interest rates lol...

And then they wonder why the CFPB would come cracking down on them...

[ASBSECU E93]

Originally Posted by ResoKP

Was the first property you bought when you were 27 priced at $800K+ (indexed to inflation)? Would you have been able to do exactly what you did if that was the case?

Times have changed.. RE is harder to get in for the 20's in today's market.

First - the house wasn't even close to 800k....adjusted or otherwise.

I think you may be missing the basic element of my comment....and no one is saying buy a 800k home now.

Qualifying for loans haven't changed much - it's still 'documented sources of repayment' as the first hurdle.

$1k per month for a car is the WORST thing a young professional can do....all I am saying, better places to park that monthly outgoing cash flow for a significantly greater return.

[RJ_]

Originally Posted by Flying Ace

My father in law is in one sweet fucking situation with his passive income. He owns a 4-unit apartment building (not rent controlled). From rental income alone, he grosses $100k a year. Assume after property taxes, insurance and upkeep, he clears $70k before income taxes. Needless to say, he doesn't have to work today, but he still does and likely clears a good $100k of gross income in his job too...just fucking amazing. Oh, don't even think about property appreciation, he could probably retire forever if he decides to sell, I'm thinking the full building is worth north of $12-$15m today (depends on your IRR assumption).

There's a 4-unit locally high on my wish list that I've been salivating over, just a matter of getting the capital together for it. Definitely a sweet setup if you can find one. 4-units kinda hit that sweet spot where scale starts to help; high cash flow, but relatively low overhead from one physical building.

It's a tough game to get into, but if you're willing to put in the work the payoff is there.

[Flying Ace]

Originally Posted by RJ_

There's a 4-unit locally high on my wish list that I've been salivating over, just a matter of getting the capital together for it. Definitely a sweet setup if you can find one. 4-units kinda hit that sweet spot where scale starts to help; high cash flow, but relatively low overhead from one physical building.

It's a tough game to get into, but if you're willing to put in the work the payoff is there.

what metro area are you in btw?

Here in SF proper, 4-unit is also one criteria to squeeze in under rent control provisions, in addition to building age, etc. These days in SF, you can't even get into a 4-unit without multiple investors. I mean, they're at least $1m per unit.

[csu87]

Originally Posted by Flying Ace

have you taken account of the temperature affects the air volume? You need to brush up on your basic Ideal Gas Laws son! PV=NRT! Tattoo this equation into your brain before you bring this weak shit into conversation.


Do you even Ideal Gas bruh? Glad you ain't designing my Michelins!

I think he follows the Roger Goodell Ideal Gas Law. Pressure does not change at all no matter what unless someone is cheating.

[pz619]

Originally Posted by EJT86

That's bad advice... You can live in a car you can't drive a house

So you're saying I should buy a RV. I'm picking up what you're putting down.

I wonder what kind of mods are available for RVs. Does BMS make anything? Dinan?

[BimmerRookie]

Guys I don't think OP is even paying attention to this thread anymore.... We're all just relaying our own personal financial advice to the random space that is OT BP

[Flying Ace]

Originally Posted by pz619

So you're saying I should buy a RV. I'm picking up what you're putting down.

I wonder what kind of mods are available for RVs. Does BMS make anything? Dinan?

no, it'll be a custom GT35R turbo running 17 psi of boost, max. But I'm sure you can get anyone to fabricate a custom FBO setup with a single canister side exit exhaust.

[jtodd_fl]

Originally Posted by csu87

I think he follows the Roger Goodell Ideal Gas Law. Pressure does not change at all no matter what unless someone is cheating.

~\o "These tires are perfect" o/~

[brandoningram14]

Thanks guy - all great points to consider. I do want to point out that everything here is 1MM+ and if I bought a 1MM house and it goes under water I'm royally fucked for many, many years and that the housing prices for the Bay Area is literally just a straight line up and I don't see the upside in buying. I could with a conventional 97 plus PMI, etc. If I had a promise from a genie that the prices wouldn't go down, id gladly buy a house (especially a multi unit for passive income) and a drive a beater. Given that this won't happen, I thought it'd be okay to enjoy life and splurge a little on a car but obviously not a 71k one

I contribute to a 50% matching 401k and my parents don't have any money. I had to wash dishes and clean tables to pay for college.

[pz619]

Originally Posted by Flying Ace

no, it'll be a custom GT35R turbo running 17 psi of boost, max. But I'm sure you can get anyone to fabricate a custom FBO setup with a single canister side exit exhaust.

That seems like a great platform to start with! My new goal is to make the RV go 60 miles per hour we hit the quarter mile. Overnight some parts from Japan; this shouldn't be a problem.

[jtodd_fl]

Originally Posted by brandoningram14

Thanks guy - all great points to consider. I do want to point out that everything here is 1MM+ and if I bought a 1MM house and it goes under water I'm royally fucked for many, many years and that the housing prices for the Bay Area is literally just a straight line up and I don't see the upside in buying. I could with a conventional 97 plus PMI, etc. If I had a promise from a genie that the prices wouldn't go down, id gladly buy a house (especially a multi unit for passive income) and a drive a beater. Given that this won't happen, I thought it'd be okay to enjoy life and splurge a little on a car but obviously not a 71k one

I contribute to a 50% matching 401k and my parents don't have any money. I had to wash dishes and clean tables to pay for college.

Good for you. Keep at it. This type of commitment and work ethic is why the time will come for you. Don't lose your patience. Live some and plan for the future some.

[M3 Number 86]

Originally Posted by Flying Ace

all this talk, yet nothing on the other side of the equation...Income. What's your monthly DTI bruh?

I'm going to give it to you straight here, unless you make over $100k+, you can't afford a $71k car...not in the Bay Area. Hell my wife and I both make over $100k each, and we can't afford a $71k car.

Do you even care about things like retirement, tax advantaged savings like a Roth IRA, building equity in property, passive income sources and having a brokerage/investment account?

My household has checked every box above and contributed for it and the max we're willing to spend on any car is still in the $50k range. And I had to dig hard into convincing my wife I can sell my M3 for $30k to come out of pocket $20k. Hell the most I've paid for any car to date is $46k (for my M3 in 2010), and that's after selling a car worth $13k to come out of pocket $33k. Our monthly debt-to-income is roughly 3%, likely less. I want to say, after basic living expense (including taxes), we bank and invest about 90% what's left. And yes, we own a house, in SF no less.

Let me put it this way, your goal in life is to set up a retirement where you monthly income is $1000...and you can afford a $71k car EVERY YEAR when you retire, how does that sound?

what the fuck is this post that made 100% sense about? you smoking something?

[UncleWede]

Originally Posted by BimmerRookie

Guys I don't think OP is even paying attention to this thread anymore.... We're all just relaying our own personal financial advice to the random space that is OT BP

And this differs from any/all other OT threads how????

Rookie

banned

[BimmerRookie]

Originally Posted by UncleWede

And this differs from any/all other OT threads how????

Rookie

banned

Forgive me, I'm fairly new to OT, as I'm fairly new to wasting time aimlessly on OT

[ResoKP]

Originally Posted by ASBSECU E93

First - the house wasn't even close to 800k....adjusted or otherwise.

I think you may be missing the basic element of my comment....and no one is saying buy a 800k home now.

Qualifying for loans haven't changed much - it's still 'documented sources of repayment' as the first hurdle.

$1k per month for a car is the WORST thing a young professional can do....all I am saying, better places to park that monthly outgoing cash flow for a significantly greater return.

I was saying from the beginning that he should buy neither... and instead save/invest it towards his retirement funds.

"all I am saying, better places to park that monthly outgoing cash flow for a significantly greater return" - you were saying this in reference to buying a house for the property appreciation gains.. where you said "Home ownership is power....IMO, that's what OP should invest in..."

And I was countering that argument by saying that OP lives in the Bay area where everything is $1M+. He can't even entertain the idea of home ownership in this market.

[shoguniori31]

In houston thats a 4 bedroom house mortgage

[ASBSECU E93]

Originally Posted by brandoningram14

Thanks guy - all great points to consider. I do want to point out that everything here is 1MM+ and if I bought a 1MM house and it goes under water I'm royally fucked for many, many years and that the housing prices for the Bay Area is literally just a straight line up and I don't see the upside in buying. I could with a conventional 97 plus PMI, etc. If I had a promise from a genie that the prices wouldn't go down, id gladly buy a house (especially a multi unit for passive income) and a drive a beater. Given that this won't happen, I thought it'd be okay to enjoy life and splurge a little on a car but obviously not a 71k one

I contribute to a 50% matching 401k and my parents don't have any money. I had to wash dishes and clean tables to pay for college.

Nothing wrong working your way through college. For many - it teaches the true value of $$.

My best advise - invest in yourself and your future wisely, whatever the choice. Maximize 401k whenever possible and remain diversified in long term investments (stocks, mutuals, RE, etc) to reduce risk.

I have planned as if government assistance will not exist when I am ready to retire. You would be wise to do the same.

[catchm3ifyoucann]

Originally Posted by brandoningram14

Thanks guy - all great points to consider. I do want to point out that everything here is 1MM+ and if I bought a 1MM house and it goes under water I'm royally fucked for many, many years and that the housing prices for the Bay Area is literally just a straight line up and I don't see the upside in buying. I could with a conventional 97 plus PMI, etc. If I had a promise from a genie that the prices wouldn't go down, id gladly buy a house (especially a multi unit for passive income) and a drive a beater. Given that this won't happen, I thought it'd be okay to enjoy life and splurge a little on a car but obviously not a 71k one

I contribute to a 50% matching 401k and my parents don't have any money. I had to wash dishes and clean tables to pay for college.

I don't understand why anyone who's young and makes a good income has to explain yourself in terms of how you came about to your success. Who care's if your parents paid for school or they didn't. Or whether or not you are buying the m3 / m4 on your own money.

[Lups]

Originally Posted by M3 Number 86

Over a thousand in monthly car note sounds a bit ridiculous. You're net take home pay is around $5000/mo after taxes and 401k right?

Minus rent $1700. Minus car $1000. You have $2300 left. Minus insurance. Minus groceries. Minus bills. Minus hookers.

Or, why don't you just lease the car for three years for much less and see where you are then? I don't mind leases because I don't mind swapping cars every three years.

But I'm not the right person to be giving advice because my priorities are whack. Money goes to car first for me even with baby on the way. But as others have said #YOLO

I'm pretty much with you here. Owing on a car is not something I'd do.

But then again he's in his early 20's. No wife, no kids and it's not like most of the folks at that time want to tie down a house to their backs.

I sold my first dream car two days after I realized I was pregnant. After that my life was mortgages, making money and making sure I wasn't just investing the labor we put in to a bad place. When I bought Peter I was in a place where spending the money wasn't an issue at all.

So the young Anna says fuck it, get it. The 34 year old anna says fuck it, get it.

The 34 year old anna might also end up paying 200 000 euros for her next car but the damn kids soon will need transportation again.

[shoei]

Originally Posted by Lups

I'm pretty much with you here. Owing on a car is not something I'd do.

But then again he's in his early 20's. No wife, no kids and it's not like most of the folks at that time want to tie down a house to their backs.

I sold my first dream car two days after I realized I was pregnant. After that my life was mortgages, making money and making sure I wasn't just investing the labor we put in to a bad place. When I bought Peter I was in a place where spending the money wasn't an issue at all.

So the young Anna says fuck it, get it. The 34 year old anna says fuck it, get it.

The 34 year old anna might also end up paying 200 000 euros for her next car but the damn kids soon will need transportation again.

You can put them all to work anyways... Have them start making carbon fiber bits and whatnot... You have enough of them to start a factory...