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!
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO