Is It Time Time To Use My Savings To Buy Real Estate?

[Michael Lopez]

I am embarrassed to confess this, but I guess transparency would be the key to my future success toward anything that may resemble a retirement plan. I will be 49 years old this year and I would suppose that it would be better to start now than never start at all. I have some savings and am now wondering if I should use it for a down payment for a rental. (Approx. $42,000) I also live in a home with about $110,000 in equity and have considered doing a cash out refinance and use the proceeds for a down payment on two more homes. One that my wife and I would move into and another for a 2nd rental. We would also rent out the home that we refinance.

When our daughter graduates next year, our plans are to move from the city we live now and to move to the Boca Raton, Delray Beach, or Boyton Beach area.

We need to be extremely wise with what we have because we would like to create a roadmap toward retirement in 15-20 years. Please ask away if you have any good ideas. We don’t want that cash to be sitting in the bank not making any real money.

Any thoughts, ideas, or help?

Thanks!