When to get started... ?

[asusak]

Hello everyone...

Just wanted to say Thank you to everyone for posting such interesting & educational reads on this forum - the additional info is invaluable!

Wanted some quick advice...

We are a couple in our thirties that went back to school late & therefore have a lovely pile of student loan debt & consumer debt. Now that schooling is done and we are both gainfully employed, we have finally put a plan in place to attach the debt very aggressively and so far so good

We have a home, but it`s mortgaged with 5% down (a year ago), so not a whole lot of equity in it. It`s our second home - we had another home for about 2.5 years, we fixed it up aesthetically from top to bottom, inside and out and did very well when we sold it. So we definitely are not scared of a little hard work!!

I`ve been reading real estate books for year (including Don`s), and trying to educate ourselves as much as possible. We feel that real estate investment is definitely our future and are very excited to get started... But the question is when?

I know that it`s possible real estate can help us get out of debt faster than waiting for the debt go away before we invest... but how do you know when the right time is without risking bankruptcy or our own home?

And the last piece of the puzzle is we are thinking of finishing our basement for a rental income... we need to put an entrace in, finish the basement & swap the bathroom & laundry room around for this to work. Do we attack that first and incur the debt or wait till the real estate could possibly fund the reno and get income from basement then?

We are a little at a loss on what next?? ... any thoughts would be greatly appreciated!

 

[markl]

No time like the present to start.

Quick advice is sometimes not what is needed. There are many things to look at when you are talking about renovations. A couple of good threads on here as well about return on capital and such. If you wait and save your money will be worth less in the future.

I don`t want to be vague but the 5 year plan with Peter Kinch`s office is a full day event. If you want to talk farther shoot me an email and we`ll set up a time. [email protected]

Regards,

 

[asusak]

Thanks! Yes, quick advice was really the wrong wording... as there are always so many variables to everyones situation...

I guess what I`m really looking for is there someone out there who has been in a similiar situation and might have some ideas on how best to approach our next steps - what worked well for them, and what didn`t sort of thing!

I`ll look for those posts...

Ami

 

[GarthChapman]

I absolutely agree with Mark that Peter Kinch`s 5 year Plan Workshop is an excellent place to start. It will result in clarity on your goals and a plan to get you started on the road to them.

And in the meantime, I suggest that adding a rental suite to your principal residence can`t do anything but help. It should reduce your TDR as the banks will count the rent into your income. It will teach you about being a landlord and give you some experience in the financing side of this business.

Hope that helps,