Bank Financing

[Bluemoon06]

Hugh, I was stating you should not pay someone rent and then go out and purchase a rental property.  Personal financial growth requires eliminating as many liabilities (rent) in your life as possible and adding assets (positive cash flowing property).

If you want a new car...look for a property to pay the bill.  If you want to live for free...look for a property to support you, etc. 

This is my definition of rich.  What I always tell people to do before they ever buy a property is to find out how much their lifestyle costs.  Not how much they make but how much they spend each month.  I mean everything from house payment to drycleaning.  Say that is $3,000/month.  Then they should look at how much cash flow they can get from a rental.  Say that is $200/month.  If they had 15 rent houses then they could maintain their lifestyle without ever going to work again.  I call that being rich.  That is because they live their lifestyle without working.  This is how you start investing, you do it with a goal in mind so you know you don't need a million houses, you need 15 or 20.

[Hugh0997]

gsuidiot, thanks I got ya now.  Guess  I should start with the multi family.  Both of what you and Blue said make perfect sense.  Thats where I will start out.   Well if I can get 3K a month then I will be very happy.  I would be living like a king in Costa Rica!!!! 

[Bluemoon06]

Well if I can get 3K a month then I will be very happy.  I would be living like a king in Costa Rica!!!! 

Or Houston Texas

[Hugh0997]

Maybe I will check out Houston sometime.  If you havent been to CR you should def. plan a trip.  I could easily see myself living there.

[gameface]

I have rented a apartment while having a duplex,which made good sense to me at the time. I was paying $500 in rent,but my duplex was making me $700 each side,which leaves me with a positive $200 per month compared to me living in the duplex and trading my $500 rent for $700 rental income.

[REI_Chris]

You were still losing 500 a month. That 500 in rent went towards nothing that you own.

[gameface]

And if i was to move there,it would be 700 that i will loose,i rather loose 500 than 700..its all about the numbers,that extra 700 is going towards what i do own

[REI_Chris]

I guess in my eyes, investing that 500 into someone else's future isn't a sound profit.

[gameface]

If your a numbers person you will see the short term profit advantage..If you lease office or retail space in a mall does not mean your not making a solid investment..You will have to analyze numbers to understand where I'm coming from.

[gsuidiot]

If it's making you $700/each side = $1400/month.    Why won't you purchase a home and use the tax advantages to build your wealth and not your landlord's?  You're spending/losing $500/month out of your wealth.  Just curious...

You're looking at it as saving $200 but you're actually losing money by not leveraging the $500 rent payment into wealth opportunity...I'm lost.  If it's because you can't commit to a place then maybe you should purchase a 4 unit and live in one of them until you can.  For $500/month it can't be that luxurious...

[REI_Chris]

You're still losing 500 a month regardless. Sure, you're making 200, but you're still losing that 500. That 500 is paying someone else's bills, not yours. Even if you moved into one side and paid that 700 a month, that's still 700 that is going into an investment for you in the long run. I'm sure it might look good to cash flow that 200 a month, but you're still losing 500 of your own money every month; no matter what the numbers look like. To me, I can't see why you wouldn't temporarily live in one side, investing your 'rent' into your own property or just mortgage another place to live in. It just seems like lost money to me. I understand where you're going with on the numbers, but I'd rather lose 200 a month than spend 500 a month on someone else's mortgage.

[gameface]

Yes i purchased a primary residence for myself a few months later, as i said in my previous post it was a "short term profit" until my lease was up. My rental bringing in 1400 monthly was not in a neighborhood i wanted to have my family,so I took my time to find something in a better location. Good thing I took my time,I found a repo for 60k put 5k into it and sold it for 120k 9 months later,I know i did the right thing by not moving into my rental, it work perfect for me and my family.