[Geno88]

I can respect that! I'm trying to live that rock star life after the GTR (you know all these thotties shallow in LA, haha jk...)

The only real plans i have is exhaust and wheels, but i get it u never know. I have another car which i adore very much so the GTR will be a garage queen to feed my own ego for the most part.

thats the decision im stuck at currently, i just about have enough to buy the car but i refuse to down pay because of debt to income. real estate for a car is def not a wining combo but it seems my best route to buy this car.

You gave yourself the correct answer, but............as you wish. We've all spoken.

 

[tjlazer]

I’d just get an older model and enjoy the car. No way I’d drop $100k+ on a R35 this late in the game. Especially if your considering paying for it with a HELOC.


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[L.L.]

With equity the new loan would be at 440k with mortgage at ~ 2500$(include property tax) ($2400 from rent)

In my head i would be losing ~900$ a month passively to drive a new GTR, and my lifestyle would not change at all because i dont actually need the 900$ for anything other than to save.

Think long and hard about the BEST case you've presented.

The negative $900 passive loss to drive a GTR is the BEST case scenario. The best case scenario should be your passive income paying for your car or better. That to some is idealistic and reality might be pulling the trigger when you're closer to somewhere above middle ground; not when the best case scenario is -900. To me, it seems like you're willingly putting yourself into a compromising position with little to no flexibility where things pretty much need to go according to plan. It was mentioned you have a built up savings account of 2 yrs. Is that going to be enough if you end up not collecting rent for a period of time... would you be okay with running at at -$3500/month or more and carrying that for a while on top of your living expenses that we are not including in this equation?

I think everyone has spoken based on how they see the situation. There's too many potential outcomes on both sides of the fence to discuss on a car forum. You're making good progress but keep moving forward and make good choices. Buying a car at top of the market while compromising your financial freedom and flexibility doesn't sound in line with what got you here. The car will always be there.

And I'll add some analytical data to what others mentioned in previous posts - On social media, the follower base for GTR pages is split 95/5 male/female so just know it attracts mostly dudes ages 13-24.

 

[Geno88]

OP - when you have all these intelligent and sensible people on GTR life to chime in and give you their word of advice, please listen.

Let me give you a personal real world conversation between myself and the wife.
me: honey, you know that 8 unit property we have in ____? it's almost paid off.........
wife: no
me: honey, did you know my question?
wife: is everything ok with that property?
me: yes!
wife: well then the answer is no
me: wait, can I ask?
wife: will you please stop messing around with our properties for your silly cars!
me: ok. I'll shut up now.

 

[HILife GT-R]

I have a HELOC, but the interest rates here are crazy low simple (not compound) interest rates. Even with the low interest rates, I only dip into it to make more money (stocks, businesses, home/rental repairs). Hard decision for you because I wouldn't be able to swallow dishing out 140k for a car. Here are some things that may/may not help you.
-Pay all cash, die a little inside, and hopefully the GT-R ownership phoenix raises you from the ashes. Take out a HELOC if you need extra/emergency funds.
-Low interest car loan (although compound interest) could still be better than that HELOC rate you have. If you need money get that HELOC.
-If you decide on paying with a HELOC, when you need money, the minimum payment is just interest (no principal).
-Buying with a HELOC will only work if you are disciplined with your money, which sounds like you are. Don't use HELOC to buy any other unnecessary parts/things and keep paying it down.
-Make sure you are budgeting for maintenance too. Especially Tires.
According to the banks and people I talked to, your HELOC debt is for the maximum value and not the outstanding balance ($140k max, but $90k left to pay). This max value will be used for the next loan you applying for. Debt in car loan is looked at the same at your HELOC amount.

I would look for a low interest car loan with the numbers you gave. If for some reason I needed some extra cash to bail me out, I would take out a HELOC.

 

[V37Skyline]

I guess is only matter of time till i get a reality check with rentals, so far so good but i def fear for the worse with cali renter protection laws.

Real concern! If someone decides to go from tenant to squatter, you’re looking at the better part of a year to get them removed, and God only knows what damage they’ll leave behind and how long it will take to fix. How much is it gonna hurt you to lose potentially two years of that income? What if, as unlikely as I hope it is, two tenants go that route at the same time?

If you’re itching for some luxurious performance, but just can’t quite swing for a big daddy GT-R, maybe consider a baby GT-R: Q60 Red Sport AWD for a coupe, or Q50 Red Sport AWD for a sedan flavor. They have ATTESA-ETS AWD, (more similar to the R33, than the R35), have 400 HP, 350 TQ from the factory (not too far off from early R35) and since the Q50 is the Skyline in Japan, it’s still part of the family. And the best part? $30,000 puts you in a 3 or 4 year old one with less than 50,000 miles

True, it won’t feed your ego like a GT-R will, but it’s cheaper to own, cheaper to mod, cheaper to maintain, and has thrills on tap. AND, you won’t be mobbed by dudes and kids everywhere you go lol.

Just saying, it’s something to think about. I had the chance in late 2019 to pick up a ten year old R35, and decided for the same price, I’d be better off getting a brand new Q60. While shopping around I decided I wanted the two extra doors and to put money into mods right away instead of into a car payment and bought a used Q50 in cash instead. I can honestly say, I made the right choice for me. I have a Skyline, which I always wanted. It’s not as recognizable as the legacies or the modern GT-R, but I also don’t have to work the corner to pay my insurance premium or for repair bills.

 

[TGHaworth]

I’m afraid our young friend didn’t like the answers he got.

 

[Coke]

well, i wasnt hoping for everyone to cheer me on to buy since i'm tampering with properties for a vehicle... but i can swallow my ego here and take in all the wisdom being dropped in. In a way i feel i'm right up the alley for the GTR, my last sports car was a BMW M4 with 30k down and 50k financed so naturally i did not think the GTR was out of my range (M4 is now sold, broke even on the financed portion and took the 30k hit, it is what it is)

I have a truck now which is paid off so im not dying for a car but not having a sports car def feel like a void. I assume we all love cars here... i just dont have much investment opportunity at the moment or in the near future so i'am extremely itching for the GTR, but you guys are right, i might chill out for now and see how things unfold by the end of the year... and will probably just write a check for the GTR without touching any of the properties. Thanks for the humbleness, hope to join the club officially in the future!

 

[crepr12]

Only YOU will know when the time is right to drop some serious coin on a car OP...fwiw...I went the cash route in 2020 when I got my 50th...It's nice knowing its paid for and I'm the first abuser/user...lol

 

[Geno88]

OP - You're already "in the club here" - just take your time with owning a GTR.
You dont need to actually write an entire check for it, but make sure the payments are good for you and you have reserves in case of mechanical failures.

 

[rwheelz]

I will second the Q50 recommendation as a baby GTR. I had one as a rental and was stunned by the performance. It pulled hard even up in the mid triple digits. I did not know it was the skyline in japan!

Auto loans are cheap right now. Leave everything else alone and buy a used GTR and take a small payment, if you insist on living your best life. It isn't likely to depreciate even if you can't resist putting some miles on your dream garage queen.

Buy it through your property management company or LLC or whatever you have set up, and deduct the interest on the loan, and the maintenance/modifications costs, take depreciation on the vehicle, etc. You could put a "Rentals by Coke" sign on the door if the IRS cares to discuss .

 

[Geno88]

Wife loves her Q50S. Only bummer is that she refuses to mod. Nothing, not even exhaust. She likes the 20's and 4S's.

 

[V37Skyline]

It’s a good looking car. Surprises everyone how fast it really is too.

 

[GTR600]

Don’t do it, just put a decent down payment and move on. Don’t commingle an asset that’s appreciating in value (your unrealized gain from your property) with the gtr.

 

[Geno88]

Nice in blue!

 

[qubit]

Wouldn't it make more sense to just do a cash out refinance instead of a home equity line of credit? That way you get the lower interest rate.

 

[Geno88]

I'm hearing interest rates today is 4 - 4.5.
After my 2.5, that's not a good deal to me.