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!
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.
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!
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/
Djana Morris - Washington DC - Virginia - Maryland Real Estate
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.
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