Next month: I'm debt free!

Hello all,

As of next month, I’ll be out of debt. I want to start investing but I have very little in savings. I know that I don’t want to buy and hold because of my networth.

Would it be good to get a duplex and live there as my primary and rent out the other unit? And buying this property means I would have to make sure I can make mortgage payments even if the other side isn’t rented? Please advise and give me suggestions on my situation. Thank you!

Congrats on being debt free! Count yourself as one of a very small group.

Just a bit of advice from a credit/mortgage professional, don’t close out your credit accounts; if you want to, just cut the cards so you can’t use them and keep the accounts open.

Thank you! My wife and I froze our cards. :cool Would using credit cards as down payments be a good idea? I mean, if I could get my APR down to as low as or lower than the mortgage rate? Please keep the inputs coming.

Not a bad idea if you need to do it. The key is to refi out of whatever loan you first undertake when you buy a property that needs rehabbed and pay off the high rate loan and then any credit card debt you acquired with the property. Doing it that way it really won’t make a difference if you use your credit card for it.

I would say only use the credit cards for emergencies and convience when you can pay something off in a month. I was out of debt and then loaded back up with it (so far its all been interest free) But that feeling you have now is IMMEDIATELY removed when you owe a credit card company.

I miss that feeling…


Aaah! You crazy kids! I guess this is because you’ve never known a time when there were no such things as credit cards. Credit lines are not the same as actual money - so you shouldn’t consider it as money that you “have.” Find a way to raise actual cash for investing - get a side job, sell some of your stuff, etc. Anything but using credit. Be patient.

The loan market is back to the way it used to be when I started in this business - putting 20-30% down and cash flowing each month. It takes a fair bit of patience and and eye for a bargain, but there is nothing wrong with doing things the old fashion way. Besides, I think it is prudent to abandon the “bubble” ways for the time being.

Don’t be too quick to diss on the ol’ credit cards. I actually balance transfered my entire 2nd mortgage onto my credit cards. I got an offer of 0% for life on balance transfers. Granted, I won’t be getting the interest deduction on my taxes, but after all is said and done, I will come out a lot better than if I would have kept it amortized.


I saw this and just had to say: Congratulations!

Just be careful on paying your statement on time. I had a credit card that kept moving the due date by just a few days here and there. If you you missed or was late on a pmt. the 0% turns into 28%… Just watch that.

Congrats to Debt-free!

Where are you living? If you are renting there might be a special first-time buyer program in your area. And absolutely yes, make it a duplex or 2 houses on 1 lot deal. Let your tenant help make the house payment.

Also, the credit card 0% transfer thing can work great, you just HAVE to have an automatic minimum payment deduction set up with your bank and the credit card company. They will otherwise keep shrinking the number of days between due dates until you are late and lose your rate. I am paying off 2 rehab loans this way (also make payments, the minimum bank debit payment is to keep it from defaulting).

HUD also has multi-unit options that are targeted at new homeowners…


Regarding CC payments. MY cc is with my online banking account. So I get notice of when the bill is due, it is NEVER 30 days from my reception. I usually just pay it the day it comes in, pretty much self paying.

If you don’t have online payment/notification, call up the bank and ask them to to give you the statement closing dates AND the bill due dates for the next year. The payment dates are not random, the bank knows when they are going to bill you.

Hope this helps.