Step 2, Taking Action!

Now that I have realized the potential I have with rentals, and the headaches, I want to formulate a plan to make rentals my full time job.

There are 18 total townhouses in the complex under my Home Owners Association.

What a grand idea to own and rent all of them!

Formulating the plan:

-get my first two rental mortgages under control.

   A- townhouse is ok and making a profit.

   B- house is not ok, taking a loss.

       1. - sell it and break even on what i owe if my tenant will go through with buying it.

       2- try to find someone willing to refinance it (no banks will).

       3- ride out the loss for the next 9 years until it is paid off.

-Seperate personal from business.

   A- open seperate checking accounts for each rental, no need for an LLC since the umbrella would be overkill ( i think)

       1- cover the loss from the house with personal money.

       2- keep profit from townhouse in the townhouse account for emergencies.

-find creative ways to purchase the other 18 units over a period of time.

       1- use the equity of the house for downpayments.

           A- if I am able to convince the owners to sell low, I may be able to purchase 2 with the equity at a time.

           B- figure out how to cover the mortgages while I find tenants.

               1- credit cards are an option, but not optimal.

STOP BEING LAZY! - thats for myself, my brain is getting fried already.