Part one was about some basic math for interest based income.
Now the fun part, how would you could even start getting $100,000 let alone $500,000 saved up?
Yeah,
this is the horrible part because most things these days are not
designed to make it easy to save money. I have never rented so I can't
guess on that type of budget. I do own a house though and that does open
a door for me to get started saving. If I chose to sell my house I
could in theory make $100,000 after everything is said and done.
I
have not put a lot of money into my house but with just the base
improvements I could see getting $100,000 from it if/when I sell.
Could
I do more improvements to my house? Of course. I would love to replace
all the windows and the siding. But I will never see that money returned
to me. It could cost $25,000 for all the windows and $20,000 to do the
siding. Then another $10,000 for the driveway. I would just never see
that $55,000 investment ever again. Not to mention I do not have the
money to even consider doing them.
I will probably look into adding a pull down stairs for attic space. That is closer to the $1,000 range. The potential attic space wouldn't be to much but it would be worth it. Especially considering the only other access it a tiny little square. I still can't figure out how my house inspector got through it because I was cramped when I went through it.
The
reason I could even hope to make $100,000 after selling is because I
got a very affordable house when the interest was super low a few years
ago. I got very luck and I know not everyone will want a cheap house in the middle of no ware.
I have also already updated the electric. That was a nightmare of tracking payments so I'm not full sure what the true total was but it was between $10,000 - $20,000 which was only because he was good friends with my realtor. The work took two years and was worth it.
Never buy a house from a church. Do not do it.
The bad part of that is that my
tiny town hasn't seen an increase in prices. It is stuck in a price
range and I would have to get very, very lucky to get more. It's just not an area that has houses that go more than $200,000 for my size of house.
On
the flip side, if I wanted to rent out my house instead of selling? I
could list it as is for renting as a single family house.
If I wanted
to rent it as a two family, I would have to rip out two doors to make it
a legal two family rental. Then I would have to figure out what to do
about laundry for the second floor. So a two family is out.
However! While renting out my house would be ideal, it is only possible if I could find a management company in my area. I know they exist but I have yet to actually find one. My town is full of rentals and I can not for the life of me find any info online. I don't have any idea who in my town I could talk to about it because my town is a little bit weird about some things.
Which brings me back to square one of selling the house once I am ready as being the best option. Pending locating the cryptid management company in my area.
So, why go over all of this? Because it shows just how much a little thing can snowball and branch off into so, so many other things.
The numbers that you want to see (based on what I want to rent out for)
Single family rent per month =$1,400
Single family rent per year = $16,800
Two family rent per month = $2,800
Two family rent per year = $33,600
And that right there is the magical $30,000 a year just without starting with a million dollars first.
What people don't talk about is that until that money is in your hands, it is not and will not ever be a guarantee.
Part three is going to be going over that very valuable point of view.
