Results that Move You!

Time to get on the bandwagon - time to buy.  Why?  well, if you keep your property for 5 years, it could appreciate by a lot of $$!!  Then you can use this money to put a small down on another house - move there, and rent out the first house.  Rents are going up, too!  You have a win-win situation, using leverage.  

I was watching Flip or Flop the other day - they buy for cash - NO leverage, because they are in, fix up, and sell.  No time for appreciation, except for what they build in to the fixer - they force the appreciation.  But let's say they buy a house for $375K, fix it up by spending $100K.  Their total spend is $475K.  They sell for $550K and they make $55K after paying $20K in closing costs (including commissions).  They put in $475K, made $55K, which is a total ROI of 11%.  That's better than the stock market, but they went through headaches (that no one watching TV sees) to get there.

You can buy a decent house at market value today for $500K.  You live there for 5 years and now your house is worth $625K.  The principal on your loan has gone down, so you have equity of about $200K.  You can some of your equity to buy another home - and let the renter pay your mortgages.  That's the nutshell version - call me if you want to go over some scenarios and see in real numbers how to do this!