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Joined: Aug 2009
Posts: 20,824
Campfire Ranger
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Campfire Ranger
Joined: Aug 2009
Posts: 20,824 |
Pay for one house. Pay 20% down on a second and the rent from the first pays for the second. Pay 20% down on a third. Half the rent on the third pays the mortgage on it,..add the other half to your monthly income.
Meanwhile all three are appreciating.
The magic 20% down. And this is the path to being a real estate mlllionaire... 
Originally Posted by Judman
PS, if you think Trump is “good” you’re way stupider than I thought! Haha
Sorry, trump is a no tax payin pile of shiit.
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Joined: Jan 2001
Posts: 29,772
Campfire Ranger
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Campfire Ranger
Joined: Jan 2001
Posts: 29,772 |
Been debt free for 20+ yrs. Also happy with the 401K. Being 73 and required to take withdrawals, I was blessed with a $3 decline last year as interest and dividends came real close to offsetting outlays.
1Minute
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Joined: Feb 2010
Posts: 16,053
Campfire Ranger
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Campfire Ranger
Joined: Feb 2010
Posts: 16,053 |
I owe no one on earth a nickel.
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Joined: Oct 2005
Posts: 79,321
Campfire Oracle
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Campfire Oracle
Joined: Oct 2005
Posts: 79,321 |
Pay for one house. Pay 20% down on a second and the rent from the first pays for the second. Pay 20% down on a third. Half the rent on the third pays the mortgage on it,..add the other half to your monthly income.
Meanwhile all three are appreciating.
The magic 20% down. And this is the path to being a real estate mlllionaire... It can be, I suppose. If you can keep coming up with all of those 20%s down. I've managed to come up with 2 and have enough for a 3rd if I stretched. But I'm not comfortable with having no cash on hand. Things come up.
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Joined: Jan 2018
Posts: 23,506
Campfire Ranger
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Campfire Ranger
Joined: Jan 2018
Posts: 23,506 |
Living rent free in the minds of many. 🦫
Curiosity Killed the Cat & The Prairie Dog
“Molon Labe”
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Joined: Feb 2011
Posts: 5,856
Campfire Tracker
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Campfire Tracker
Joined: Feb 2011
Posts: 5,856 |
Basically, if you're living in a house that's paid off, you're turning down whatever it would rent for.
The first house will buy a second house. Some of us prefer to invest in the marker instead of real estate.
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Joined: Jun 2020
Posts: 10,840
Campfire Outfitter
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Campfire Outfitter
Joined: Jun 2020
Posts: 10,840 |
Attacked for having lots of cash and paying cash . Wow
It never fails here , does it? Some tiny weeny jealous person has to derail any thread they feel threatened in. Well hell bob, you always like to throw in your rude and uninformed mouthy comments in other people's posts. Don't like it so much now huh, retard? I could give two farts what your dumb, fat azz thinks. Who has cash to buy whatever they want and who is pissing and moaning about their miserable life (your post history) ? Laughing here on the way to pay cash for anything I need. Youll never get it
FUGK CCP
It’s time to WAKE UP
GOD BLESS THE USA
WWG1WGA
THERE ARE NO COINCIDENCES
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Joined: Oct 2005
Posts: 79,321
Campfire Oracle
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Campfire Oracle
Joined: Oct 2005
Posts: 79,321 |
Basically, if you're living in a house that's paid off, you're turning down whatever it would rent for.
The first house will buy a second house. Some of us prefer to invest in the marker instead of real estate. A lot of people are successful playing the stock market. But I've never been a successful gambler.
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Joined: Mar 2013
Posts: 27,091
Campfire Ranger
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Campfire Ranger
Joined: Mar 2013
Posts: 27,091 |
Since I can do nothing right, I have 22 years left to pay on house. Being 65 it will probably never be payed for.
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Joined: Feb 2011
Posts: 5,856
Campfire Tracker
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Campfire Tracker
Joined: Feb 2011
Posts: 5,856 |
Basically, if you're living in a house that's paid off, you're turning down whatever it would rent for.
The first house will buy a second house. Some of us prefer to invest in the marker instead of real estate. A lot of people are successful playing the stock market. But I've never been a successful gambler. Keep the majority of your money in index funds and it's not really a gamble...no more than real estate. Everybody gets scared when investors mention "risk" because they don't know the word has more than one meaning.
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Joined: Dec 2005
Posts: 3,019
Campfire Tracker
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Campfire Tracker
Joined: Dec 2005
Posts: 3,019 |
20 year fixed rate home mortgage @ 2.62% on $250K home.
240 monthly payments of $1339.42
240 × 1339.42 = $321,460.80
321,460.80 - 250K = $71,460.80 interest
Padded VA Hospital Rooms for $1000 Alex My ignoree,s will never be Rock Stars on 24 hr campfire.....Like me!!!! What are psychotic puppet hunters?
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Joined: Oct 2005
Posts: 79,321
Campfire Oracle
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Campfire Oracle
Joined: Oct 2005
Posts: 79,321 |
Basically, if you're living in a house that's paid off, you're turning down whatever it would rent for.
The first house will buy a second house. Some of us prefer to invest in the marker instead of real estate. A lot of people are successful playing the stock market. But I've never been a successful gambler. Keep the majority of your money in index funds and it's not really a gamble...no more than real estate. Everybody gets scared when investors mention "risk" because they don't know the word has more than one meaning. If the housing market crashes, it means the economy has crashed *big* time. The stock market crashes on a regular basis. But, like I said,..many people are successful playing the stock market. I just don't like how it's manipulated. The fat cats on Wall Street can crash a stock anytime they choose. With real estate, low interest rates makes it appreciate, high interest rates increases the competition for rent and pushes the price up.
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Joined: Jan 2008
Posts: 15,739
Campfire Ranger
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Campfire Ranger
Joined: Jan 2008
Posts: 15,739 |
That's good math but I bought this house very cheaply and since the 2.62 percent is on a balance of 28k I don't mind paying it.
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Joined: Jan 2014
Posts: 1,335
Campfire Regular
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Campfire Regular
Joined: Jan 2014
Posts: 1,335 |
House, farm, all vehicles, kids student loans and all cards. All before age of 65. Only debt left is to Jesus.
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Joined: Dec 2017
Posts: 4,550
Campfire Tracker
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Campfire Tracker
Joined: Dec 2017
Posts: 4,550 |
Dave Ramsey says it best. "The paid-off home mortgage has taken the place of the BMW as the status symbol of choice." Dave Ramsey is for stupid people who can’t do math! While he does teach some good principles on doing a budget and paying off consumer debt; his “steps” are a good way to screw yourself out of at least seven figures by the time you reach retirement. Regarding retirement, you should be putting away 10% or more of your money the second you have a retirement plan. To not take advantage of an employer match on your 401k and to lose out on the time value of compounding interest is absolutely ridiculous. To actually advise people not to prioritize this is borderline criminal! Dave’s advise could literally reduce your retirement nest egg by half. To answer the question, I’ll have this place paid for in about four years. Well, what about security you ask? My investments and retirement are worth 4X the value of the property. I can simply pay the entire thing off if I wish, but my mortgage rate is 2-5/8 but my ROR on my investments is 45% ytd. Why would anyone take away money making 45% in order to pay off money costing a net of only about 2% after deductions? Inflation is higher than the cost to borrowers. Avoid Ramsey retirement planning at all costs! Didn't say a word about his steps or the bit about having an envelope for bills and setting that money aside. I've never needed anyone to tell me how to be frugal and stay within my means. I do agree with his statement 100% about the paid off mortgage though. Everyone needs a roof over their heads and not owing anyone for it is great. You're always a slave to the lender if you owe money I'll also add that I don't have the option of employer matched retirement as I work for myself. That makes for a whole lot different ball game that most people. You’re talking specifically about you and I’m rebutting Ramsey’s retirement planning. We’re not exactly talking about the same thing. Instead of borrower/lender; the conversion and bigger picture should be about how to become the master and make your money work for you instead of against you. Net worth is the goal with me. That’s not really aligned with ol Dave’s philosophy. There’s several good posts here already about this so no need for me to rehash it all - have a look at what W. Juniper and EdM said. Yes, I am. Dave Ramsey's plan never would have fit into my plans for building my business as some debt was needed and at times it was a no brainer, especially after those Bush tax breaks. Some of my money and a loan saved me big time in taxes and allowed me to invest in my business in such a way as to make for a better future. Working for the other guy never allows that. I'll also say that we all have different desires for retirement. Mine started 20 years sooner than most of my age group and it began with becoming self employed. For me borrowed money on something that makes a steady income is better since I never plan to sell my home so for me I want it free and clear. Some of us just have different situations. My needs are pretty basic too.
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Joined: Mar 2008
Posts: 15,289
Campfire Ranger
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Campfire Ranger
Joined: Mar 2008
Posts: 15,289 |
Mine's been paid for since 2001.
We sold our rentals, one of the happiest days of my life when we closed on the last one. Rentals are the biggest PITA imaginable, with the possible exception of owning a restaurant or bar.
IMHO, You should try to have a paid-for house by age 55. Makes life much simpler and makes you much more independent.
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Joined: Jan 2001
Posts: 30,713
Campfire 'Bwana
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Campfire 'Bwana
Joined: Jan 2001
Posts: 30,713 |
not yet.....bought current property late in life........ 2 greedy ex wives didn't help either Doing OK.......healthy....good #3 wife--------- 
T R U M P W O N !
U L T R A M A G A !
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Joined: Oct 2006
Posts: 2,411
Campfire Regular
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Campfire Regular
Joined: Oct 2006
Posts: 2,411 |
House and land paid for by 60.
To preserve liberty it is essential that the whole body of people always possess arms and be taught alike, especially when young, how to use them.-Richard Henry Lee
Endowment Member NRA, Life Member SAF-GOA, Life-Board Member, West TN Director TFA
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Joined: Nov 2006
Posts: 1,956
Campfire Regular
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Campfire Regular
Joined: Nov 2006
Posts: 1,956 |
paid as we built, ourselves when we were 19,20 years old. Had a termite control business. Do 15-20 jobs in a month, plop down $5k on several units of lumber. Store it in the our Burley barn. Do another batch of jobs, repeat.
Pick out a spot on the farm, set up batter boards, david white transit, start digging a footing with pick and shovel. Call ready mix.
Go do a few more jobs, save up money for couple months, buy all the blocks and brick.
Pay as you build
Get it dried in and, roofed, doors and windows and family/friends help walk away. We can do the rest. Have uncle so and so drop in once a week see how the rough in wiring is going. Make sure it aint gonna be a code inspector’s wet dream
A few delays, like stopping on your house to help a cousin work on his for a few days. Need all hands u can lend when someone trying to get one decked in or rafters set.
When youre done, it’s yours. So you are like Dale Gribble
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Joined: Nov 2006
Posts: 1,956
Campfire Regular
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Campfire Regular
Joined: Nov 2006
Posts: 1,956 |
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