Not sure what my plan is yet

[Brian Campbell]

Hello
I am brand new in this game, but hope it is less corrupt than the stock market (at least for me). My hesitation has always been the image of hassles with renters, knowing the law and unscrupulous lenders and realators.

I am a teacher, but my wife (not married legaly) thankfully makes a bit more than I. I actually make more with internet poker included. We had a lot of extra cash/ and still could that sat in a checking account until I read up on ways to invest it. A lot of it was lost in stocks, now we save mostly in our 401 and 403, My IRA and Mutual Funds. I only have enough liquid to buy a house at 100k, but I really don't want to part with it.

Our house is 5 years from being paid off (My best decision ever was to refi during the Bubble period to 10 years).

I was thinking of taking out a Home equity loan to purchase a home, but after reading some posts in here wonder if it is best (financially in the long run) to pay off the house (maybe in 2.5 years), before buying.

My goal is to have my wife buy the first house, then I buy the next (using my first buyer incentives). We move into the one I buy and rent the one were in now. Thats my first two. I'm not looking past them until I get through the process and see if the head aches are worth it.

I don't know if I am planning it correctly or not. I don't want to let fear prevent it from happening, so I am reading books on law and "buying your first rental property". However nothing is like talking to experienced professionals.

So my first question is; Does my buying plan make any sense. Do I use the home equity loan/ or a second/ or pay off my home in 2.5 years first.

There are probably many variables needed to answer those, but in your own opinon, if your 38.....want to retire at 55, have about 100k in retirement, and probably need about 2k a month in cash from real estate what would you do in general.

Feel free to take into account the market and your opinion as to when the best time to buy is. I heard a Fannie May quote a few weeks back saying the market will suffer another 20% drop, this is what I'm waiting for. Having to put 20% down then watching it drop 20% would be par for my investing course so far.