BUY more rentals or buy our dream home ???

6 Replies

With 2 free and clear rentals and solid jobs. Me and my wife was approved for 300k in buying power with Wells Fargo. Keep in mind we’re 27 years old, we have 2 children, and living in a 1 bedroom. 

My wife is all in getting our dream home of course. 

My business mind is thinking buy more investment properties. Also I’m thinking about the dream home because it was all a goal of mine to get the big house ? 

What y’all think ?

Go in between and buy a home but not max budget. You probably need a home with two kids.

Plus the old saying goes “happy wife, happy life” probably applies here lol

@Isiah Ferguson

Isiah, if you're in this business, then one of the things that needs to go by the wayside is the belief that you should buy a "dream home" anytime during your most active investment years. My wife and I have lived in construction zones now for six years and it's been one of our wisest financial decisions.

The number one silly decision that will limit your capability to turn cash flow into net worth, that is, to save and invest, is spending too much money on your housing situation.

Get a modest 3 bedroom as cheaply as you possibly can.

The book to read that will convince you that this is your best strategy is Thomas J. Stanley's Stop Acting Rich...And Start Living Like A Real Millionaire. This was Stanley's last book, written well after he was catapulted to fame by "The Millionaire Next Door," his most popular book.

Read the book Rich Dad Poor Dad. The house you live in is not an asset it is a liability. This is because it is not making you cash every month. Buy assets that will cash flow to pay for your house, cars, college education for your kids etc. Do this while you are young and you will soon not have to worry about money or if you were to lose your jobs.

Put off that dream. 

Buy a quafplex and live in one unit. Every 2 years but another and live in it. Do this a few times then buy your dream house and have it paid for from cash flow.

Originally posted by @John Underwood :

Read the book Rich Dad Poor Dad. The house you live in is not an asset it is a liability. This is because it is not making you cash every month. Buy assets that will cash flow to pay for your house, cars, college education for your kids etc. Do this while you are young and you will soon not have to worry about money or if you were to lose your jobs.

Put off that dream. 

Buy a quafplex and live in one unit. Every 2 years but another and live in it. Do this a few times then buy your dream house and have it paid for from cash flow.

Thanks for the feedback. Our free and clear units currently cash flow enough to cover our dream home. 

Our assets ( rentals) are able to pay off our (liability) primary residence. Plus we both have jobs. 

Originally posted by @Isiah Ferguson :
Originally posted by @John Underwood:

Read the book Rich Dad Poor Dad. The house you live in is not an asset it is a liability. This is because it is not making you cash every month. Buy assets that will cash flow to pay for your house, cars, college education for your kids etc. Do this while you are young and you will soon not have to worry about money or if you were to lose your jobs.

Put off that dream. 

Buy a quafplex and live in one unit. Every 2 years but another and live in it. Do this a few times then buy your dream house and have it paid for from cash flow.

Thanks for the feedback. Our free and clear units currently cash flow enough to cover our dream home. 

Our assets ( rentals) are able to pay off our (liability) primary residence. Plus we both have jobs. 

Yes but then you are essentially starting from nothing again. You wouldn't have any bills so that would be great! But you would only be able to save your income from your jobs to start investing again, whereas if you stay in your current situation, you could have the cashflow and your income to compound and buy more properties faster. So instead of a 300k dream home, you are looking at a 2.9 million dollar dream home in south Florida with a dock to park your personal boat.

Ok that's my dream home, but still you get the point =D