Quote:
Originally Posted by Alvinized52
Yep! First thing i did was to skip 401K/IRA... but instead save enough money for downpayment on my first house. With equity built up after a couple of years, I pulled some money out to buy second house... rented out my first house and got positive income. With more creative financing and savings, Ive been able purchase 5 more rental properties within the next 6yrs thats been generating me substantial passive income... the income i receive from those is then diversified into various stocks and mutual funds, retirement SEP IRA, and some biz ventures while I wait for the next real estate cycle to buy more properties. My goal is to be able to retire before im 50... or atleast have the "option" to say I can retire any time after that.
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thats sort of the path i took. i bought my first house at 23 (3.5% down FHA loan), rented two rooms, saved that income and then some, bought my first rental at 25 with about $32k down (25%). first rental almost doubled in value and another unit came up for sale at a reasonable cost, so i did a cash-out refi with the first rental and picked up the second rental. they were both so cheap that i have always had positive income. since then, shit has gone up and i find myself hoping for another crash or huge market correction. its a weird thing to say. ended up doing a 20 year refi and dropping my PMI, shaving a few years off the loan, and keeping the same payment.
since i started tracking my car, i'm finding it harder to save money... but i don't ignore the important stuff- i still max out a roth ira every year and put 15% of my gross income into a 457b plan.
saving money is like digging in the sand with a nail. losing money is like pouring water into the same sand.