All Forum Posts by: Mark Askey

Morning.

I have been reviewing the forums, listening to podcasts and just bought and read two of the recommended books, so I am not asking this question without doing some digging beforehand.    

We own a 3bd/3ba home in McKinney Texas (North Dallas).   We have a 123,000 mortgage on it.   It would probably sell around $190,000 today, so we have some equity in it.    Rents in the area for similar format homes are around $1500.  Our mortage is only $1000 with taxes and insurance included.

Talking a HELOC out for a downpayment on a new home sounds like it makes sense, but I am reading that may not be the best thing to do. We don't have any additional cash to use for a downpayment on a new home, but may have availability to borrow from parents.

I ran the numbers on renting my current house and it looks like it would break even if we or generate a $100 or so dollars a month in cash flow if we managed the rental. It all depends on how much money we take out on an HELOC for a new house.

Our goal would be to find another 3bd/2ba home either in North Dallas - maybe farther north into ANNA and live there a few years and repeat.  Or find a new home in another part of the country where the market will turn over the next 5 to 10 years.  Ultimately, I would like to own enough rentals to have an income coming in to retire, provide investments my wife can draw from instead of investing $500 a month in a $1,000,000 life insurance policy and realistically retire at 70. ( I am 53) and also need a place to draw money out for College in the future. (Kids are 10).     

My Delima:   We are barely living paycheck to paycheck today on a single income as wife can't work.  I will take on two jobs if needed. My goal was to find a way "job" for my wife to do from home and start us on a path to getting ahead.  Our credit is excellent and debts are small, so this move feels right but I am sitting here wondering if I am being realistic about all of this.

I am listening to people on podcasts who were in worse shape than I am today and took the leap and made it happen.   I am sure that my wife and I can be as successful as others have been.   I just need some input if I am missing something here.

Your brutal and honest comments are appreciated.

Mark