I like "bogs". The numbers below are not real but hypothetical. Lets say I had $100k for a downpayment on a home. I have a family of 3. I am a first time buyer. Would you suggest that whatever I buy I do so with the intention of someday renting it? What should my thought process be?I only see what I see b/c of what I do for a living.
I sometimes think that I made a mistake in buying our home here in NC. For the money I put down on this home, I could have continued to rent and bought two rental properties of my own. I realize that your time is valuable and I'm essentially asking for free advice, but would you say that it was a mistake?
I think the first thing to do is to set up your family in something affordable and buy the home if it's some place you can see yourself for at least 7 years. If not, rent. The key is to figure out exactly what it takes to live each month and then start looking for ways to create the passive income to support it. You have to have a day job to pay for everything now but spend extra time learning about investments and stashing away cash anyway you can - IRA, savings, etc etc. No need to be in a hurry, it's a lifelong pursuit. It actually happens very fast but very fast is usually like 10-15 years. I'm 42, bought my first properties when I was 28. 14 years goes by fast. 6 more years and I'll be an overnight success at 48 years old. I can talk more later but be careful about buying thing by yourself. Single family rentals aren't as easy to deal with as it would seem. I'd look for larger syndicated deals or REITS. Gotta run for now.
I feel rich now. Once passive income is greater than monthly fixed expense is when I started to feel comfortable. I still work. I create investments and offer them to accredited investors so that they can have passive income too. In one fund, we distribute $100,000/month in excess cash flow. It goes out on the 15th every month and it's one of the greatest feelings out there. Of course there is stress but working when one doesn't HAVE to changes ones' perspective greatly. I'm not sure what you mean by "enjoy the fruits of your labors". I realized awhile ago that I'm happiest when I am pursuing a worthwhile goal. Money is just money. Helping other people, donating ones time, spending time with friends and family, etc etc. is most important but like anything else, balance is critical. You can't eat a gourmet meal 3x/day 7 days week or you won't appreciate it. Plus you'll be a fat-ass and a burden to society. Anyway, I feel rich in many ways. I'm not sure it should take money to feel this way but it doesn't hurt - money is a source of control, a belief structure. I didn't set the game up and I think many folks take it too seriously but that's the case with any game, right?