Becoming the Millionaire Next Door

Reblogger Tammy Emineth
Services for Real Estate Pros with Personal SEO - Website SEO and Real Estate Marketing

I love Djana's post on this and ever since she wrote it (several days ago) I have been pondering it over and over. Thinking what a great idea and if I want to retire at 65 I better get on the ball with this system.

Some folks made interesting comments about restrictions of how many mortgages you could have out there and I suppose that's a challenge you would face with this system. But nevertheless, having this set up 30 years down the line would be ideal!

Original content by Djana Morris

Becoming the Millionaire Next Door

Ten years ago my husband and I hired an electrician to fix a simple problem in our home. He was a nice, unassuming guy in his late 50’s, and the more we talked with him, the more we liked him. It was during this conversation that he told us a story about his life that has inspired me to this day. investing in DC property

When “John” was a young man of 28, he bought his first DC property. It was a small home in a decent area. He got a roommate who paid ½ of the mortgage and he was able to save quite a bit of money. The next year, he stumbled upon a good deal on another house. He bought it, found good tenants who paid the mortgage each month, and even had a little positive cash flow. After giving the situation some thought, he came up with a plan that he followed to the letter.

Each year for the next 29 years he purchased a small, affordable home in a decent neighborhood and rented it out. His plan was to begin selling the homes once they were paid off – that was how he would fund his retirement. When we met John, he had just sold the first home he had bought thirty years before. He owned it free and clear and it was worth four times what he had paid for it. He planned to repeat this process over the next 29 years, selling his properties one by one. Wow! What a simple plan – but one that would provide him with financial freedom for the rest of his life.

I’m not suggesting that buying 30 houses is possible for most people in today’s financing environment. But this is a fantastic time to buy an investment property if you qualify, as interest rates are extremely low and the DC area has homes in every price point. After an initial investment, the tenant pays for the property, while you reap the benefits. It doesn’t get any better than that!

Your Washington DC Realtor

I love living, working and playing in the Washington DC area and will be a true advocate for you before, during, and after your home purchase. Whether you are looking at a home, rowhouse or luxury condo anywhere in the DC real estate area, you can be sure your needs will be met and your requirements for a home taken as my top priority. It really pays to have someone who knows the area.

Not only do I represent buyers and sellers of DC Property, but I also represent MD Real Estate and Virginia Real Estate as well. I am your exclusive Long and Foster Real Estate Professional. Click here to learn more about me. Originally posted here : http://www.wheretoliveindc.com/blog/becoming-millionaire-next-door/

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Where to live in Washington DC

Djana Morris - Washington DC - Virginia - Maryland Real Estatelong and foster

Serving the Washington DC area with Long and Foster Real Estate. I would love to help you buy or sell any home in the DC real estate area including MD real estate and property in Virginia. Contact me anytime for a free CMA on your current property or to get listings emailed to you on Washington DC properties.

 
Djana.Morris@LongandFoster.com -
202-364-1300 Office -
202-309-0146 Cell -

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Rainmaker
642,397
Bill Reddington
Re/max Southern Realty - Destin, FL
Destin Florida Real Estate

Sounds like a great plan. Think the rules are a little different today in reference to the investment price. Plus tenants treat properties a lot different than they did 30 years ago. Hopefully he bought most of them before the never ending bubble.

Jan 31, 2012 10:47 AM #1
Rainer
206,584
Marge Piwowarski
Phoenix AZ Horse Property - Phoenix, AZ
Phoenix AZ Horse Property, LLC

It isn't quite that simple.  Do you have any idea how much maintenance 30, tenant occupied  houses would require?  They are all taxed and have to be insured, some years tenants are easy to come by, others not so much. There will be months when they are vacant.   I am not saying that can't be done (although I doubt it) but that it can't be as simple as presented. 

Jan 31, 2012 11:39 AM #2
Rainer
332,713
David O'Doherty
Raleigh Realty Inc - Clayton, NC
Clayton NC Homes, Raleigh, NC

I have a friend who stumbled into investing by accident about 15 years ago. He now owns 70 homes and counting!!

Jan 31, 2012 01:18 PM #3
Rainer
247,691
Doug Bullwinkel
Envoy Mortgage, NMLS 6666 - Roseville, CA
Mortgage Loan Originator NMLS #281609

Great topic to repost Tammy.  It's great to buy houses when the prices are down as low as they are today.  Anyone with some cash and good credit can make a very good return in the future.  The new lending rules, minimum down payment requirements and maximum number of allowable properties owned makes it a bit more challenging, but it can still be done. 

Jan 31, 2012 03:56 PM #4
Rainmaker
1,762,811
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

That sure sounds like a great plan Tammy, I may be a little behind schedule.  :)

Jan 31, 2012 05:41 PM #5
Rainmaker
705,895
Erika Rogers
Red Rock Real Estate ~ Southern Utah's Largest Independent Brokerage - Saint George, UT
St George Utah Real Estate & Relocation Specialist

Wish I'd had the forsight to start something like this when I was younger. Looks like a great plan and now is the perfect time to pick up some investment properties!

Feb 01, 2012 08:50 AM #6
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