Do you live in New York? Boston? San Francisco? Maybe Miami? If you live in a high cost-of-living area, getting by can seem tough, let alone paying down debt or getting ahead financially (like I always harp on you to do).
If you’re struggling to pay the rent and can’t possibly comprehend saving money at the end of each month, maybe it’s time to take a different approach.
How to Survive in High Rent Areas
What if, instead of living in a miniature 350 square foot, one bedroom apartment, you rented a bigger place and shared it with a few other folks?
I know, I know. At first it doesn’t sound ideal at all, but what if I told you that you could save nearly a thousand bucks a month on rent? Do you realize the impact that this could have on your debt snowball? It’s at least worth taking . . . → Read More: One Profound Tip to Survive in High Rent Areas
On November 30th, 2015, we closed on our very first rental property – a 3 bedroom, one bath home in a nearby neighborhood. The pipes we corroded, the kitchen was a disaster, and the hardwood floors all needed refinishing (which I have of course never done in my life).
It was a big project, but we were starry eyed with the investment possibilities. After all, we had the cash for a complete purchase and figured that 100% of the rent checks would go directly in our pockets.
Were we a little naive?
But we all get a little naive with excitement, don’t we?
Related: Our Offer Was Accepted. Let the Rental Games Begin!
We Bought a Rental House With Cash
You may be thinking, “How in the world did you buy this rental house with cash??”
Long story short:
I hate debt. It makes me nervous, angry, . . . → Read More: We Bought a Rental House With Cash – One Year in Review
Do you have a passion for real estate? Have you ever wondered how fast your rental empire could grow? And how quickly you’d become wealthy?
I’ve spent quite a few nights trying to figure out over the years:
When we’ll have enough money to buy the next rental How much we’ll earn from year to year And how much our net worth will grow as I acquire more and more rentals
Pretty much I always ended up with a notebook page filled with scribbles and cross-outs, and a very vague sense of how everything would play out with the rentals 10+ years from today.
Finally, I decided that I’ve had enough with my rough estimations! It was time to figure out all of the details exactly. So you probably know what that means! It was time to build another Excel-based calculator! 🙂
(Interested in all the free tools . . . → Read More: The Rental Property Wealth Calculator: Your Path to Millionaire Status
Liz and I bought a rental house on November 30th, 2015. We fixed it up, had an open house, and landed some awesome renters that moved in on April 15th, 2016. We are now officially landlords (which still seems weird to say).
Related: How to Attract the Best Tenants for a Rental Property
So what’s the point? Why did Liz and I decide to dump $90,000 into a rental property instead of the stock market?
It’s pretty simple actually. We don’t trust the stock market at all.
The market goes up, tumbles down, it comes back again and thrives, and then all the sudden it’s down in the dirt again. Quite frankly, the market seems about as safe as jumping out of a plane with a 50 year old parachute; we might be completely safe and have the time of our lives…or we might die with nothing.
Yes, we still . . . → Read More: Rental House or the Stock Market – Who Won So Far in 2016?
Should you rent or buy your next place? This is the age old question that many people answer incorrectly.
If you live in West Michigan (like I do), here’s the advice you’ll likely get in life:
Go to college Get good grades Snatch up your future spouse Get a solid job Stop throwing your money away in rent and buy a house
By the way, this should all be done before you’re 25 years old….
So is this advice that we should all be listening to? I’m going to go with, “Heck no” on this one Bob.
This advice might work for a few of you and you’ll be happy as clams for life. For most of us though, this just won’t work out. Some will grow unhappy with the massive debt load and others might even end up destitute!
What worked 50 years ago just doesn’t work the same . . . → Read More: Rent or Buy? What Should You Do?
This is a guest post from Pauline from InvestmentZen.com
You become financially independent the moment your investments yield enough money every month to cover your expenses. You can then decide to stop working and enjoy life, although most people simply decide to slow down a bit, while remaining active. If you are financially independent in your early 40s or even 50s, the perspective of laying in a hammock sipping cocktails all day long for the next 50 years is actually a bit depressing. But in order for your investments to cover your expenses that early, you need to focus on two things:
Spending less Saving more
The less money you need in order to support your lifestyle every month, the quicker you can quit your day job and focus on what is really important to you. Getting rid of your mortgage seems like a great idea in order to get . . . → Read More: Pay Off Your Mortgage Early and Become Financially Independent
In today’s economy, it’s still a buyer’s market. But many people still feel like they can’t afford to live in their own home. While it may be a good idea to rent until you are sure you can afford a home, there are so many benefits to owning your own home now. You don’t have to have a lot of money to live in your own place, and you can buy a home on a low income.
This post has been written by our regular writer, Kimberly Studdard. Enjoy!
How to Buy a Home on a Low Income
So many people just assume that they’ll rent an apartment for the rest of their lives, that there’s no other option for them. This simply isn’t true. With a little bit of savings and a bit of a cut-back in your monthly expenses, it is most certainly possible! You absolutely can buy . . . → Read More: How to Buy a Home on a Low Income
“Going to be a slumlord, huh? Have fun with that!” “My brother tried that for 10 years and lost money every year.” “My uncle owned a multiplex once. All the units got trashed and he constantly had to evict people for not paying.”
For whatever reason, when I started getting excited about buying a rental property (for that oh-so-nice rental income), the above reactions are what I got from my family, friends, and co-workers. Maybe they were just trying to be helpful – trying to protect me from a future disaster – but I think there was more to it than that.
I wanted to do something great – earn a passive income, create options for my future life, and grow my net worth to huge sums! Many people have these dreams. Few people take the first step to achieving them. The “advise” I received was basically their excuse . . . → Read More: Rental Income: A Headache or a Dream Come True?
I’ve wanted to be a landlord since I was 16 years old. I always loved the idea of owning property that would appreciate in value, and I adored the notion of someone else paying off the loans.
“Why wouldn’t everyone want to be a landlord?” – I often thought to myself.
As I grew up, I began to understand both the positives and negatives of becoming a landlord. And now that I am a landlord, I’m beginning to see the pros and cons first hand.
First-Time Landlording – My First Two Weeks
“Going to be a slum-lord huh? Have fun with that when the toilet backs up!” — Clueless Broke-Guy
I thought that I would be the envy of all of my friends. I finally had the ability to buy a rental property and I could conceivably earn money passively from anywhere! I could be taking an all-day . . . → Read More: First-Time Landlording – My First Two Weeks
Liz and I (and my Mom and Dad) have busted our butts over the last few months to transform a foreclosed house into an attractive, livable rental house. Take a look at the results below!
On day one, we pulled up the carpet expecting to see beautiful hardwood floors. What we actually found was an outline of hardwood, with “softwood” in the middle, and a couple of plywood boards that were covering holes in the floor…. Not great.
We hired a floor guy to patch in the holes and then we just sanded and poly’d everything else, hoping it would turn out okay. I think it looks fantastic!
The kitchen was an absolute disaster. It was painted multiple colors, was missing almost all the cupboard doors, and the floor was stacked with different types of laminate flooring and plywood. Not to . . . → Read More: The Rental House is Complete! Before and After…