USING ALL OF OUR SAVINGS TO BUY STR

[Shannon Smith]

We have $100,000 savings in the bank. We found an amazing and unique $500,000 house with 5,000 taxes. We can put 10% down and with closing costs spend about $75,000. We will easily spend the remaining $25,000 in misc furnishings, paint, etc. We will have to live off of our checking account and the income from this house for one year until we get a bonus check from work. This house is already generating $3,000 per month on just 1 of the bedrooms in a 5 bedroom house. I feel like it’s such a great investment cash flow wise so we shouldn’t pass it up…but I’m super nervous given we’d be spending all of our savings right now. What would you do? 

[Dave Stokley]

Every single speaker i heard at BPCon last week said “in this market it’s important to have sufficient cash reserves.” So if you’re listening to the experts, you’re probably in over your head on this one.