As you may or may not know, I’m going to be divorcing soon with small children.
Now, I’m a firm believer in solutions, not whining, but I’m a little stuck on something.
My strategy is:
to rent month to month for a while as the market drops lower.
Live in the city where homes are lower, but the taxes are higher. - I’m taking this approach because taxes are deductible ergo, I’m living for less. (correct me if I’m wrong.)
Schools could be better, so I will homeschool my kids as a supplement to the public school.
Purchase a home with equity in a growing or desirable neighborhood.
Live below my means to accumulate cash.
I aspire to control 10-20 milliion dollars in real estate acquired during this bust. I have paid off all debts (save for a car loan) and pay my bills ahead of time to get the fico up higher.
Working on 2 schools of thought: 1. cash is king, and 2. investing on borrowed money is a ticking bomb, I am unclear about how to have the finances to make these purchases. I will not have piles of cash saved to invest.
Does that mean that I am too late to the REI dance? What exactly does it mean, and what can I do to have the finances to purchase these properties?
Is this where OPM comes in via hardmoney and/or lines of credit via the banks,/credit cards? If so, what do I do now to secure those lines so that I’m ready to take advantage of these firesales and retire at the height of the next boom? :biggrin
How much money do I need in reserves? I have been working on the principle of 6-9 months cash living expenses per property. Am I off base?
Thanks, You guys rock.