Living below my means?
Hello everyone. I will start off with some basics:
I work full time in the tech industry and make a decent income. I own a condo in California that I rent out. On a monthly basis, my cash flow from this property appears negative. After tax adjustments, I am just about breaking even on that property. If you factor in rising equity, it is profitable (that is questionable right now, I know). It was my first purchase - I definitely made mistakes, but I have learned from them and am most likely holding that property - at least for now. The current market in California is not something I feel like wrestling with for a sale at this time.
My interest is to invest in multi-unit rental properties. My goal is to generate enough monthly cash flow to quit my full time job and pursue personal business interests and additional real estate investments. I am reading several books on the topic and boning up on my necessary mathematics. I am 28 years old and single with no plans for marriage or children.
I do not own the house I currently live in. It is a rental. My reasoning for this at the time was that I wanted a nice large house with a swimming pool, room for my dogs, etc, and was not sure if I would be moving out of state soon. I pay the rent and all bills on my own - rent is $2250 a month and bills probably get the total closer to the $3,000 range.
I have become accustomed to the large house and amenities. However, I can't help but think of the extra $1,000 or so a month I could save by moving into an apartment or a less expensive property. I could use that money in this down market to make some great investments on additional rental properties and have a much more comfortable life in the long run.
My question to you all is this - how do you motivate yourself to be more forward thinking? That, or do you have any suggestions on how I can continue to live the style I am used to while still capitalizing on the great real estate prices out there now? I am very wary of any type of zero-down loans, so my plan would be to save up the necessary down payment and make one or two purchases a year, depending on the logistics.