Quote:
Originally Posted by Alvinized52
Quote:
Originally Posted by roastbeef
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.
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Yep! SoCal is in a real estate bubble right now. Good time to sell a property, terrible time to buy here in SoCal tho... prices are outrageous! After the election, interest is likely gonna go up... maybe even as early as next year. This means more housing inventory and price drops... more REOs hopefully. Time to get ready for that next wave.
On A Side note, i dont personally believe in 15 or 20yr mortgages...or paying off my houses unless I plan to live in it forever. Reason is I'm likely going to sell or tap my properties at some point when equity is built up before i ever completely pay them off. Liquid Cash is king for me... to help build my RE empire. Its the equity potential gain over time is what matters to me. Lower payments will just help save faster. In fact I wouldnt mine a 50yr mortgage with low monthly payment if it exists... That would be my dream loan as an investor. |
I understand that mindset, but eventually my current residence is going to be a rental.
Ideally, I'll buy my "forever" home in about 15 years. All the rentals will be paying for it and then some. Retirement plans will pay for toys. I don't think I'll ever sell unless it's a problem property or something.