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Established Contributor
Posts: 2,112
Registered: ‎09-25-2011
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5 year plan? (2 years done)

[ Edited ]

Anyways I'm in the process of buying a house, I just went on a credit card app spree which ended really nice. I had a $3,500 personal secured credit lines, now have 55k+ in credit lines. I'm not too worried about cause I'm not planning on a big purchase in the next 6 months+


Then I realized something.


1. I been saving at the rate of 40k a year in two years

2. I'm buying a house (75k) in cash

3. I already have people who want to rent the house for $1,200 (rent is expensive here in FL)

4. My credit is still very good.

5. A family friend wants to sell me his business location for 100k. In a busy location for the locals (tourists rarely go but very well known locally)

6. Within 6months I should have 20% downpayment for that location

7. That would add another $600 income (already has good tenant who doesn't want to buy)   already got pre-approved for a 300k housing loan with Chase so a 80k business mortgage should be no problem. $400 mortgage $1,000/month rental contract.

8. So $1,200 house rental + $600 commerical lease = $1,800 a month. = about 22k so 22k+ 40k (how much I have in a year = 62k)


So if I save for 6months straight, and buy this business location and rent out my house that I'm buying. I should have no problem to pay off the business commerical lease within 3 years max. WIth no mortgage that would generate around $2,200 a month. + annual savings of 40k = 66k a year. So basically rinse and repeat I could potentially have a small house or a business location every 2 years..


1. Saved money to buy a house in cash took 2 years

2. Save money for downpayment for buisness 0.5 years

3. pay off the business location 2.5 years


4. Rinse and repeat = profit? Smiley Happy


I understand there are oh **bleep** situations like building issues and etc, but that's what things like NavChek is for Smiley Wink besides that I lived in the area for over 20+ years so I know where the market is pretty strong in this area.  If I go through with this technically after $2,200 a month I would take home around $1,900 after taxes or so. but that's good enough for me to retire with my lifestyle lol! (don't care that much minimalist) but if I just keep getting a few locations probably stop at 3k a year after taxes which should only take maybe 3-4 more years after. What do you guys think?


The funny thing is this idea seems a lot more stable than having myself do something like going into Pharmacy school which was one option. but 7 years of school and being in debt vs potentially having 2-3k a month in rental income without having to work within that time frame is nice.


The reason why this works for me is


1. I'm single

2. I have zero debts (paid for everything in cash)

3. Good credit

4. minimalist lifestyle (total monthly spending including bills is about $600 a month that includes gas+cellphone+food+going out+ restaurants etc)

5. I work 60-70+ hours a week so it doesn't give me much time to spend money

6. I can live with my parents rent free since I help them run two of their own businesses and take care of their banking/finances and could careless what other people think, we get along like bestfriends anyways.

7. probably most important, I know how to separate my WANTS vs NEEDS. I buy what I need, and only buy what I want once a month if that.


I understand **bleep** happens and things don't always go 100% smooth but I don't think it'll be too much to worry about. I'll still work part-time even if I do this for incase things happens.

total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Established Contributor
Posts: 736
Registered: ‎07-07-2010
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Re: 5 year plan? (2 years done)

congrats thats awesome

01/11/2011: FICO:TU: 746
12/14/2010: FICO:EQ: 744
08/12/2011: FICO:EXP: 766
Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
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Re: 5 year plan? (2 years done)

Go for it man! Rental income is awesome. I plan on picking up more as I go too!
I'm going to buy another set of duplexes in about 4 years... that will give me 4 rent houses and passive income of over 4k per month. Its nice when your money works harder than you do.

Starting Score: 08/29/2011 TU 671 EQ 674
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Regular Contributor
Posts: 135
Registered: ‎01-04-2012
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Re: 5 year plan? (2 years done)

Hey, it's the American way!Smiley Very Happy

FICO EQ: 633 8/15/12
lender pulled 11/3/12 EQ 661 TU 650 EX598
credit Karma 674 credit sesame: 663
B/K discharged 2/2006......closed 8/2012

May your limits be high and your balances low!

Established Member
Posts: 18
Registered: ‎10-11-2012
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Re: 5 year plan? (2 years done)

Nice Plan!

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