12-01-2012 01:03 AM - edited 12-01-2012 01:05 AM
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?
I understand there are oh **bleep** situations like building issues and etc, but that's what things like NavChek is for 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.
12-01-2012 05:52 AM
12-01-2012 11:53 AM
Hey, it's the American way!