Need some advice for Newby "Real estate financial strategy"

[Tyler Shoaf]

Hello Fellow Investors and Professionals

Financial consultants, wives, husbands… etc.

Have a question for you! I build our family home with my own two hands took me 3 years to do… but saved me tons of money and got a lot more for my money. Have 252k in a mortgage cost of building the homes (mine and mother-in-law suite) and land the homes are on. home appraises for 596k and the 7 acers of land worth 300k. I don’t have any debt but this house loan. No cc auto loans nothing just living expenses and insurance a month. Making into the 6 figures a year with my “day jobs” wanting to branch out and get my real-estate portfolio growing for my future and retirement. My wife is under the impression “Dave Ramsey way” getting the house paid off in the next few years but my interest is so low it seems a waist to not use a home equity line of credit to buy multiple properties and get them into their own conventional loans and put the money back to our home after the loans are established. I don’t know what direction or the best strategy for progression and growth in the real estate and rental business. Would love some advice or direction with facts or numbers to share with the wife to talk over a plan or strategy for our family. Don’t want to mess up and put our family home in jeopardy but I feel it’s a value to help get farther faster. It will also me out of state investing after ready many bigger pocket books “this is the way”.

[Bryan Escudero]

One of the hardest mind shifts is to go from "consumer" to "investor." I agree with Dave Ramsey in my personal finances. We carry very little to no debt. This is important to allow us to do things that we like to do without worrying about credit card bills etc. As a small business owner (which real estate should be treated as), it is good to use leverage to move at a steady pace. You don't want to be irresponsible with your "good debt", but if you can change your house from a liability to an asset, the loan to yourself can pay off great dividends in passive income. I would recommend that you educate yourself and your wife on the some conservative underwriting and be prepared to move into the market when feasible. With interest rates the way they are, it feels like the competition to get started is pulling back a little and the time to strike will present itself soon. Good luck!