Hi everyone,
I wanted to poll some advice and perhaps get a different perspective on my planned financial path. Some quick context:
-28 yo (m) married to 26 yo wife debt free minus our mortgage (cars, cc, student loans are paid off)
-currently have about 6 months cash saved for emergency
-wife left teaching for much higher paying job (almost 6 figures).
- I’m currently at a job where I’m close to 6 figures.
-want to build our forever home within the next 5 years (start the process of buying land and getting a line within the next 2-3 years). This will be in the NC to be closer to family. Thinking about 500k build (on the low end) not including land.
-will probably have to rent for a few years
-also want to start our FIRE journey through purchasing and renting out properties.
-even with housing rates climbing our realtor thinks we should make ~50k after selling our house.
- wife and I can save about 4K a month with her new job
So my question is in the order of things. So far I have roughly 2 options which I need advice on.
Option 1:
A) Sell our current home and put any money we make from it towards buying some land for our forever home.
B) move to NC and begin stashing away cash for a down payment on our build.
C) once we have enough to put down for our loan, start building
D) build another nest egg to get a loan for rental property.
E) purchase rental property to increase cash flow.
F) save any profit from rental and put toward another down payment for next rental property.
G) repeat step D-F until FIRE
Option 2:
A) same as step A option 1.
B) move to NC and begin stashing away cash for a down payment on our RENTAL PROPERTY. This step can be repeated as necessary.
C) once we have more cash flow, save more for larger down payment on house to build bigger house. (Again 500k would be on the low end).
Steps D-G then repeated as above in option 1.
Essentially, what should we do first? Start building right away so we can stop renting long term? Or assuming the rentals are profitable, should we increase our cash flow first to have more income and put down for a larger home? I know builds never cost what you originally expect and we have some eclectic tastes that I know will cost more. Would increasing our cash flow help us to secure a higher loan or would the bank say that’s assuming too much debt?
I know this is oversimplified but it’s as far as I’ve gotten. What haven’t I thought of? Any insights on the two options above? Let me know if more info would be helpful.
I wanted to poll some advice and perhaps get a different perspective on my planned financial path. Some quick context:
-28 yo (m) married to 26 yo wife debt free minus our mortgage (cars, cc, student loans are paid off)
-currently have about 6 months cash saved for emergency
-wife left teaching for much higher paying job (almost 6 figures).
- I’m currently at a job where I’m close to 6 figures.
-want to build our forever home within the next 5 years (start the process of buying land and getting a line within the next 2-3 years). This will be in the NC to be closer to family. Thinking about 500k build (on the low end) not including land.
-will probably have to rent for a few years
-also want to start our FIRE journey through purchasing and renting out properties.
-even with housing rates climbing our realtor thinks we should make ~50k after selling our house.
- wife and I can save about 4K a month with her new job
So my question is in the order of things. So far I have roughly 2 options which I need advice on.
Option 1:
A) Sell our current home and put any money we make from it towards buying some land for our forever home.
B) move to NC and begin stashing away cash for a down payment on our build.
C) once we have enough to put down for our loan, start building
D) build another nest egg to get a loan for rental property.
E) purchase rental property to increase cash flow.
F) save any profit from rental and put toward another down payment for next rental property.
G) repeat step D-F until FIRE
Option 2:
A) same as step A option 1.
B) move to NC and begin stashing away cash for a down payment on our RENTAL PROPERTY. This step can be repeated as necessary.
C) once we have more cash flow, save more for larger down payment on house to build bigger house. (Again 500k would be on the low end).
Steps D-G then repeated as above in option 1.
Essentially, what should we do first? Start building right away so we can stop renting long term? Or assuming the rentals are profitable, should we increase our cash flow first to have more income and put down for a larger home? I know builds never cost what you originally expect and we have some eclectic tastes that I know will cost more. Would increasing our cash flow help us to secure a higher loan or would the bank say that’s assuming too much debt?
I know this is oversimplified but it’s as far as I’ve gotten. What haven’t I thought of? Any insights on the two options above? Let me know if more info would be helpful.