All Forum Posts by: Marcus Johnson

I'd like to the answer to that question also. I live in Minnesota and have interest in a cabin someday.

At this point it isn't legally your house so until it is I would figure out if your trying to save money in risk free accounts such as cd's and savings accounts or to invest in more risky but better returns such as Roth IRA's and mutual funds. It all depends on what your trying to accomplish. B

I Agee with James Wise. Having cash is vital to investing, especially if want to be your own boss. Those who haven't borrowed someone else's money or are heavily leveraged with no cash reserves won't survive a major downturn in the marker like we had in 2008.

I think it's human nature to want to veer away from Dave Ranseys plan because it requires sacrifice and is hard. I mean, if you actually have to save up for something to eliminate risk, it's hard because most of us are impatient an want it now. So that is why most people would rather go with Kryisoki's methods.

Unless your desperate for a tenant I wouldn't do it. I don't pay much attention to credit scores, I'm worried about the amount of debt someone carries and it sounds like he has good income but likes payments and carries a lot of debt. To much risk

@Craig Shute

What people don't calculate properly for is risk. Funding your investments through credit cards and lines of credit in your position means that you don't have any money to be investing. All it takes is for a job loss in your life, a transmission break down in your car, a medical problem and your completely hosed.

I personally saved up money slowly by working extra jobs and through stock market investments to save up a 25% dp on a duplex and also saved up an additional 6k for EF and repairs. My way may be viewed as conservative to others, but I know the dust settles I can withstand down turns in the market much better then someone who is leveraged to the hilt and has no cash.

You do what you want, but I'm just trying to give you wisdom from personal life experiences.

I think when having both investment properties and primary residence mortgages over 50%, if things don't go well, your going to find yourself quickly in debt.

@Craig Shute

IMO, I wouldn't do a deal where I have to borrow money from a credit card. Your not calculating for risk properly. I don't see this deal going well, when you have no real cash set aside for problems with the property and especially the chance of not tenants. Believe me, there are unexpected problems with property that you don't see coming and borrowing money from a credit card is a terrible idea.

My biggest question would be "is your EF fund going to be borrowed or do you have any cash?" I wouldn't invest unless I have a safety net. Murphy always finds his way into your life when your broke.

Yes. I believe that your primary residence should be no more then 25% of your net income, otherwise your to cash poor to save up for investing.