okay, we decided not to jump on the rental property. You guys clarified a lot for me. It is risky- and it is foolish to take a financially solid life- and put it in a gambling type of situation.
The whole situation did force me and BB to talk and we did reach some agreement points:
We do want to eventually buy another rental property. We are not sure when, but decided we will do it when everything "feels" right. The deal has to be great (as this one was), and we have a solid downpayment (that we saved).
So that means we want to start actively saving money for the next downpayment. Do we have any way to squeeze more money from our turnip buget? Not really. We are pretty maxed out as far as my paycheck goes- but it is good to know we want to do this- it feels good to have goals and know what we want our future to look like.
We know that when BB gets a full time job-we will be in a position to take this step. It was nice to put some responsibility on BB, and to finally get some of his skin in the game.
We thought of partnering with our friend who wants to buy a rental property. That way we could split the down payment and only need to come up with $10,000 which would be much easier. But the profits would be split and I didnt think the return was worth the headaches. We would need to get lawyers involved, form an LLC, and put a good friendship on the line.
So as of now- it's a vehical we want to pursue to build long term wealth- but it's not in our 6 month plan. If BB gets a job- it might be in our 1 year plan- who knows- so we will prepare for the possibility by continuing to live a thrify lifestyle and saving as much as we can- but stop considering it as a viable option for right now.
One thing learned; buying a second property seems easier than buying a first property. I now understand the differences between major expenses, and minor fixes. I am not so attached to "finding my dream home" and can look at the building more objectively. Deciding if a property will work seems like a much quicker decision process this time around. I am glad- because the stress associated with finding the first one is not something I want to do again.
update- not buying another rental property
October 26th, 2009 at 03:03 pm
October 26th, 2009 at 03:14 pm 1256570097
To be fair, going to the rental property business isn't always a bad way to go, and I think you are much better positioned to take on such an endeavor than many other people I've come across on the internet and is actually trying to do it.
October 26th, 2009 at 03:58 pm 1256572699
October 26th, 2009 at 04:14 pm 1256573679
I just saw too many traps in your post like, "There may never be a better deal!"
OF course there will be a better deal!!
Your current plan sounds much more thought through. But it's nice to bounce ideas off on a forum like this and get unbiased opinions.
October 26th, 2009 at 06:02 pm 1256580166
October 26th, 2009 at 06:20 pm 1256581221
October 26th, 2009 at 07:07 pm 1256584060
Also, like baselle, what are your individual stances on this issue? I don't think that was made clear earlier.
October 27th, 2009 at 12:16 pm 1256645802