Hi everyone, i'm new around here and would like some opinions from you folks.
i'll try and keep it short but heres my story and situation.
im 32 and my wife is 31, we bought our first house at 19 and 18, lived there for a few years then rented it out for a few years then sold it to build "the big house."
We lived in the big house for a few years until the market crashed. Ironically, as the economy was crashing both of our jobs cut hours right around the same time our ARM loan was adjusting UP (do they ever adjust down?)
Anyways, it was the perfect storm, bad economy, overpaid for home, ARM loan, less income, expensive wedding, car payments, etc. you know, the american dream! HAHA.
Long story short we lost the house to foreclosure and we totally re-evaluated how we do finances, moved into a one bedroom apartment and began paying off all remaining debt (the only thing we defaulted on was the house.) after all remaining debts and cars were paid off we moved in with relatives and saved for a house. We eventually paid cash for our house and are currently debt free except a credit card we had to use to replace our furnace right before winter. We also got sued for the deficiency on the foreclosure and had to pay for that as well.
So, now that we have finally cleaned up the mess we made we are ready to move forward.
We want to buy rental property but we are totally shut out of a mortgage for 5 more years because of the foreclosure. But we have a free and clear home worth about 150,000, paid off cars, and very little monthly expenses and around $4800 income monthly.
How should we proceed? Our thought was obtaining a HELOC on our house combined with some saved cash to purchase a rental property. Is this a good idea? We don't really want to wait 5 years but we also have great peace of mind sleeping in a house that cant be taken away (provided we pay property taxes) so we are kinda stuck.
What would you do?
i'll try and keep it short but heres my story and situation.
im 32 and my wife is 31, we bought our first house at 19 and 18, lived there for a few years then rented it out for a few years then sold it to build "the big house."
We lived in the big house for a few years until the market crashed. Ironically, as the economy was crashing both of our jobs cut hours right around the same time our ARM loan was adjusting UP (do they ever adjust down?)
Anyways, it was the perfect storm, bad economy, overpaid for home, ARM loan, less income, expensive wedding, car payments, etc. you know, the american dream! HAHA.
Long story short we lost the house to foreclosure and we totally re-evaluated how we do finances, moved into a one bedroom apartment and began paying off all remaining debt (the only thing we defaulted on was the house.) after all remaining debts and cars were paid off we moved in with relatives and saved for a house. We eventually paid cash for our house and are currently debt free except a credit card we had to use to replace our furnace right before winter. We also got sued for the deficiency on the foreclosure and had to pay for that as well.
So, now that we have finally cleaned up the mess we made we are ready to move forward.
We want to buy rental property but we are totally shut out of a mortgage for 5 more years because of the foreclosure. But we have a free and clear home worth about 150,000, paid off cars, and very little monthly expenses and around $4800 income monthly.
How should we proceed? Our thought was obtaining a HELOC on our house combined with some saved cash to purchase a rental property. Is this a good idea? We don't really want to wait 5 years but we also have great peace of mind sleeping in a house that cant be taken away (provided we pay property taxes) so we are kinda stuck.
What would you do?
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