Chicken/Egg

by Krista Kowaluk
(Winnipeg, Manitoba Canada)

Hi there,

I've read through your ebook and am very interested in your rent-to-own strategy of investing. Here's my question:

We need to sell our house in Winnipeg (a nice home in a nice area)paid $237,500 worth $255,000 and buy something in Brandon. Would it be smart to keep the Wpg home and try to set up a rent-to-own deal with a family here and/or should we try to find more of a starter home when moving to Brandon and set up a rent-to-own deal after a few months-year in that house. We are trying to be creative about starting this type of investing but have the large wall of no current large sum of cash to put a down payment on a second home and have the added twist of having to sell one home and purchase somewhere to live in Brandon.

Have you any ideas?

Thanks so much for your time:) And for sharing your wealth of knowledge!!

Krista Kowaluk

Comments for Chicken/Egg

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May 20, 2011
RE: Chicken and Egg
by: Tom Karadza

Hi Krista,

You're a warrior and will get through all of this!

Our preference is to take care of our primary home for our family first. So we'd recommend selling your first place and buying a nice place to live, in Brandon. Once you're settled then you can focus on your first investment property. If you stretch yourself too thin right out of gates you won't have the financial foundation you need to survive any unexpected expenses or repairs on the property.

So, although it's probably not what you want to hear, that's our advice. The care of the family home first and then begin investing. We do know of some people who choose to rent their family home and put their other cash into a rental property... that's an option as well. Just remember to keep enough liquid cash around to survive a couple months vacancy on your rental property and an unexpected large repair (e.g. roof etc.).

Hope that helps a tiny bit Krista,

Tom

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