[Deal Hunter]

It’s a buyer’s market, so I would buy. However, don’t buy the biggest house you can afford. Find the most modest house you can stand, and buy the house JUST BELOW that standard! Work it out so that you have the ability to set aside 6months to 1 year of emergency cash.

Put as much down as you can and DON’T FORGET you have mortgage interest deduction with ownership that you don’t have with renting. Take the total of your potential mortgage interest deduction and divide by 3200. The result is the number you can add to your W4 exclusions to pull more money out of your paycheck each week. (Note: Your refund at the end of the year will be smaller).

I understand that school district is important, but so is your financial well-being. A reasonable purchase in those areas may still be putting you too much at risk with no ability to save. Perhaps a unsurpassable deal in a different area would give you the “cushion” you need and still allow you to own a home.

It’s temporary until you and the U.S. economy recovers better footing. You just have to put more effort into supporting your kids through a couple of years of a less than ideal school district. But I echo the post before me….

SAVE MONEY!

[Deal Hunter]

I’m only 2nd generation RE investor. My parents bought SFR to rent out. They still have their dozen or so all paid for and giving them income. Their philosophy was to put a crap load of money down and pay off the mortgage. They didn’t help me get any of my rentals – although they did give me a “gift” of cash to buy my house after I got married.

I’ve followed all their advice, except for the one house I got in 2006. I didn’t put enough down to make it so the rent covered the mortgage. The other ones I have are cash flowing.

Whether it takes 2 years or 20, ALL my investments produce an income – through rent. The PROBLEM in real estate happens when people try to employ the appreciating nature of real estate to make quick money through flips. That’s how people end up “underwater.”

In any kind of economy, but especially a recessionary and hightly inflationary economy like the one we are in today, the fundamentals (and wisdom) of buying an income-producing asset are as sound as they have ever been.

[Deal Hunter]

I’m only 2nd generation RE investor. My parents bought SFR to rent out. They still have their dozen or so all paid for and giving them income. Their philosophy was to put a crap load of money down and pay off the mortgage. They didn’t help me get any of my rentals – although they did give me a “gift” of cash to buy my house after I got married.

I’ve followed all their advice, except for the one house I got in 2006. I didn’t put enough down to make it so the rent covered the mortgage. The other ones I have are cash flowing.

Whether it takes 2 years or 20, ALL my investments produce an income – through rent. The PROBLEM in real estate happens when people try to employ the appreciating nature of real estate to make quick money through flips. That’s how people end up “underwater.”

In any kind of economy, but especially a recessionary and hightly inflationary economy like the one we are in today, the fundamentals (and wisdom) of buying an income-producing asset are as sound as they have ever been.

[Deal Hunter]

I’m only 2nd generation RE investor. My parents bought SFR to rent out. They still have their dozen or so all paid for and giving them income. Their philosophy was to put a crap load of money down and pay off the mortgage. They didn’t help me get any of my rentals – although they did give me a “gift” of cash to buy my house after I got married.

I’ve followed all their advice, except for the one house I got in 2006. I didn’t put enough down to make it so the rent covered the mortgage. The other ones I have are cash flowing.

Whether it takes 2 years or 20, ALL my investments produce an income – through rent. The PROBLEM in real estate happens when people try to employ the appreciating nature of real estate to make quick money through flips. That’s how people end up “underwater.”

In any kind of economy, but especially a recessionary and hightly inflationary economy like the one we are in today, the fundamentals (and wisdom) of buying an income-producing asset are as sound as they have ever been.

[Deal Hunter]

I’m only 2nd generation RE investor. My parents bought SFR to rent out. They still have their dozen or so all paid for and giving them income. Their philosophy was to put a crap load of money down and pay off the mortgage. They didn’t help me get any of my rentals – although they did give me a “gift” of cash to buy my house after I got married.

I’ve followed all their advice, except for the one house I got in 2006. I didn’t put enough down to make it so the rent covered the mortgage. The other ones I have are cash flowing.

Whether it takes 2 years or 20, ALL my investments produce an income – through rent. The PROBLEM in real estate happens when people try to employ the appreciating nature of real estate to make quick money through flips. That’s how people end up “underwater.”

In any kind of economy, but especially a recessionary and hightly inflationary economy like the one we are in today, the fundamentals (and wisdom) of buying an income-producing asset are as sound as they have ever been.

[Deal Hunter]

I’m only 2nd generation RE investor. My parents bought SFR to rent out. They still have their dozen or so all paid for and giving them income. Their philosophy was to put a crap load of money down and pay off the mortgage. They didn’t help me get any of my rentals – although they did give me a “gift” of cash to buy my house after I got married.

I’ve followed all their advice, except for the one house I got in 2006. I didn’t put enough down to make it so the rent covered the mortgage. The other ones I have are cash flowing.

Whether it takes 2 years or 20, ALL my investments produce an income – through rent. The PROBLEM in real estate happens when people try to employ the appreciating nature of real estate to make quick money through flips. That’s how people end up “underwater.”

In any kind of economy, but especially a recessionary and hightly inflationary economy like the one we are in today, the fundamentals (and wisdom) of buying an income-producing asset are as sound as they have ever been.

[Deal Hunter]

I agree the media is feeding off the misery and paranoia of the markets. The big and “smart” money are moving in where everyone else is walking away from. Conventional lenders aren’t lending, so hard money is stepping in and making a killing. Buyers aren’t buying, so foreign investors are scooping up the deals.

I’m barely squaring my debts with rents, but the rents are stronger now that mortgages are harder to get.I’m doing fine with the properties I got in 2001 and 2003, but I too fell for an easy to get mortgage and got a property in 2006 that I’m a couple of hundred dollars negative on each month.

I’ll be able to handle it and am encouraged that my area (Las Vegas) has a strong economy. My only regret is that I’m short on enough cash to get in on some of the unbelievable deals available now. I’m from a long line of real estate investors and we all know one thing for sure – Real estate always comes back.

[Deal Hunter]

I agree the media is feeding off the misery and paranoia of the markets. The big and “smart” money are moving in where everyone else is walking away from. Conventional lenders aren’t lending, so hard money is stepping in and making a killing. Buyers aren’t buying, so foreign investors are scooping up the deals.

I’m barely squaring my debts with rents, but the rents are stronger now that mortgages are harder to get.I’m doing fine with the properties I got in 2001 and 2003, but I too fell for an easy to get mortgage and got a property in 2006 that I’m a couple of hundred dollars negative on each month.

I’ll be able to handle it and am encouraged that my area (Las Vegas) has a strong economy. My only regret is that I’m short on enough cash to get in on some of the unbelievable deals available now. I’m from a long line of real estate investors and we all know one thing for sure – Real estate always comes back.

[Deal Hunter]

I agree the media is feeding off the misery and paranoia of the markets. The big and “smart” money are moving in where everyone else is walking away from. Conventional lenders aren’t lending, so hard money is stepping in and making a killing. Buyers aren’t buying, so foreign investors are scooping up the deals.

I’m barely squaring my debts with rents, but the rents are stronger now that mortgages are harder to get.I’m doing fine with the properties I got in 2001 and 2003, but I too fell for an easy to get mortgage and got a property in 2006 that I’m a couple of hundred dollars negative on each month.

I’ll be able to handle it and am encouraged that my area (Las Vegas) has a strong economy. My only regret is that I’m short on enough cash to get in on some of the unbelievable deals available now. I’m from a long line of real estate investors and we all know one thing for sure – Real estate always comes back.

[Deal Hunter]

I agree the media is feeding off the misery and paranoia of the markets. The big and “smart” money are moving in where everyone else is walking away from. Conventional lenders aren’t lending, so hard money is stepping in and making a killing. Buyers aren’t buying, so foreign investors are scooping up the deals.

I’m barely squaring my debts with rents, but the rents are stronger now that mortgages are harder to get.I’m doing fine with the properties I got in 2001 and 2003, but I too fell for an easy to get mortgage and got a property in 2006 that I’m a couple of hundred dollars negative on each month.

I’ll be able to handle it and am encouraged that my area (Las Vegas) has a strong economy. My only regret is that I’m short on enough cash to get in on some of the unbelievable deals available now. I’m from a long line of real estate investors and we all know one thing for sure – Real estate always comes back.

[Deal Hunter]

I agree the media is feeding off the misery and paranoia of the markets. The big and “smart” money are moving in where everyone else is walking away from. Conventional lenders aren’t lending, so hard money is stepping in and making a killing. Buyers aren’t buying, so foreign investors are scooping up the deals.

I’m barely squaring my debts with rents, but the rents are stronger now that mortgages are harder to get.I’m doing fine with the properties I got in 2001 and 2003, but I too fell for an easy to get mortgage and got a property in 2006 that I’m a couple of hundred dollars negative on each month.

I’ll be able to handle it and am encouraged that my area (Las Vegas) has a strong economy. My only regret is that I’m short on enough cash to get in on some of the unbelievable deals available now. I’m from a long line of real estate investors and we all know one thing for sure – Real estate always comes back.

[Deal Hunter]

I wouldn’t read too much into the rally. Before the boom times hit again the DOW will dip to 10,000 or less. At least one, perhaps 2 big banks will close up shop (JP MOrgan on the inv bank side and perhaps Wells Fargo or Citigroup on the commercial bank side).

There will be a massive tax reform and some level of privitizaion of social security. The tax reform will boost the housing market or level it off and the privitazation of ss will boost the stock market.

The double edged sword will be that once social security is in private hands, politicians and fed reservists will no longer be able to manipulate money supply and interest rates as easily as they did in the past. This is not altogether a bad thing, though.

[Deal Hunter]

I wouldn’t read too much into the rally. Before the boom times hit again the DOW will dip to 10,000 or less. At least one, perhaps 2 big banks will close up shop (JP MOrgan on the inv bank side and perhaps Wells Fargo or Citigroup on the commercial bank side).

There will be a massive tax reform and some level of privitizaion of social security. The tax reform will boost the housing market or level it off and the privitazation of ss will boost the stock market.

The double edged sword will be that once social security is in private hands, politicians and fed reservists will no longer be able to manipulate money supply and interest rates as easily as they did in the past. This is not altogether a bad thing, though.

[Deal Hunter]

I wouldn’t read too much into the rally. Before the boom times hit again the DOW will dip to 10,000 or less. At least one, perhaps 2 big banks will close up shop (JP MOrgan on the inv bank side and perhaps Wells Fargo or Citigroup on the commercial bank side).

There will be a massive tax reform and some level of privitizaion of social security. The tax reform will boost the housing market or level it off and the privitazation of ss will boost the stock market.

The double edged sword will be that once social security is in private hands, politicians and fed reservists will no longer be able to manipulate money supply and interest rates as easily as they did in the past. This is not altogether a bad thing, though.

[Deal Hunter]

I wouldn’t read too much into the rally. Before the boom times hit again the DOW will dip to 10,000 or less. At least one, perhaps 2 big banks will close up shop (JP MOrgan on the inv bank side and perhaps Wells Fargo or Citigroup on the commercial bank side).

There will be a massive tax reform and some level of privitizaion of social security. The tax reform will boost the housing market or level it off and the privitazation of ss will boost the stock market.

The double edged sword will be that once social security is in private hands, politicians and fed reservists will no longer be able to manipulate money supply and interest rates as easily as they did in the past. This is not altogether a bad thing, though.

[Author]

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