Please help me figure this out....borrowing your way to riches....
OK, so my husband and I just got into a huuuge argument over this.
He is not associated with real estate in any way btw.
I was trying to explain to him my plan/strategy to acquire a bunch of owner financed investment properties within the next couple of years. I got all my information from Robert K and Tyler G Hicks' books.
Basically, in my situation my brother and I will inherit a house in a couple months. The house is free and clear and I plan to borrow maybe 10k against the house.
I will then look for an owner financed single fam home. I will try to put as close to $0 down as possible. If I absolutely can't find an owner willing to take 0 down, the most I'd put down is the 10k I borrowed against my house....
So, lets assume I take over a single fam home and had to put the 10k down. We will pretend that I'm buying it for 100k-10k down...so 90k. The owner wants me to pay him 500 a month. I get the tenant to pay me 700 a month, I only profit 200 a month.
Here is where it gets tricky...according to the books I have read it seems as if I can some how borrow against that single fam home. Can I do this if I am not on the title/deed? I'm assuming not, so how would I go about getting my next investment property? Would I just need to save up or bowwow a small down payment for my next property?
Here is why we argued, my husband told me "You'll always be in debt because you'll always owe someone"....since I'll owe the bank 10k for borrowing against my house and I'd owe the owner of that single family 90k (but the tenants are paying my mortgage).
Is the whole idea to acquire a string of investment properties w/o putting any money down? Do I just need to have a bunch with small residual incomes until they are paid off? Lets just say I get 20 properties with no money down and the value of these properties is 1 million. Then according to my husband I'll be in 1 million dollars worth of debt.....but does it really matter since all of my tenants will be paying my mortgages?
I don't know if I'm wording this wrong but I am not crazy lol. I know I can come out on top doing this....I just need a sensible way to explain it to my husband.