Reality Check Time - Posted by Jimmy
Posted by Jimmy on April 20, 2006 at 07:17:31:
Never invest emotional energy into a real estate deal. It clouds your judgment.
You have no cash. You have no ability to absorb a period of vacancy in the apartment unit (and you absolutely, positively will have periods of vacancy). What are you going to do when you have a sewer line break, or a flood from a washing machine, or any of 1000 other things that can happen and require MONEY to fix.
You need to start building a cash reserve. When you have 5-6 months owrth of mortgage payments socked away, you will breathe a lot easier. and your credit profile will be a lot more attractive to home lenders.
Don’t put yourself in a position where you could be upside down almost immediately.