What Would You Do If You Were In My Shoes?

[Bernadine Cruz]

Ok, Me and my husband have been reading books and podcasts for a while now and are so ready to get into the business URGENTLY!!! I'm writing this post hoping to get some direction on what our best option is to start. I'm a stay at home mom, taking care of the kids and not employed. My husband was a truck driver in the fuel hauling industry for 9 years and two years ago we decided to buy our own truck and now he's a owner operator with a well established company. But this puts us in the 1099 bracket. We owned one home for the past 10 years and it has about $60k equity according to the bank appraisal. This property was build in 1983 and in a very central older neighborhood. They recently build a charter school walking distance from this house.  Four months ago we turned this home into a rental property, we have great tenants and it brings in a monthly cash flow of $400. We then purchased a second home that's now our primary residence. This home was a steal. It was a builders model home and we bought it with a $35 equity and move in ready with all the bells and whistles. This property is in a new development with allot of homes on the market. This makes me think it's not the right time to flip, but I might be very wrong. 

With all this being said, our debt to income ratio is really tight right now. With our one son starting high school and the other being 2 yrs old we don't want to make hasty discussion but we are READY to dive into investing 100%. I have dedicated the last two years to our little one and my husband works 12-14 hours a day so he hardly gets to see the kids and this just breaks my heart.

Being new, we would appreciate any advise. What would you do if you were in our shoes? Thank you very much in advance for taking the time to read my post and respond with your advice to us.

[Thomas S.]

There is likely zero equity in your present property after sales expenses so no point in selling. If there were you could sell and rent an affordable place, cut way back on expenses and live frugally to save every dollar to invest.

Your biggest issue is financing since you do not work and your husband is self employed.

Best option would be for you to go back to work, assuming you have a employment field that generates descent income, and save every possible penny.

Your present life situation does not lend to investing without considerable cash savings. You need to decide if you are willing to put in the short term pain for long term gain. Investing is hard work and very time consuming. You need to make some tough life decisions regarding family.