I have read that there is no availability to purchase an affordable house. That is not completely true. There are affordable houses within your grasp but they are not your dream house. You must understand how to play the market. Understanding the real-estate market is the key to getting into the house that you want to own. I am going to explain two methods on how to get into the house that you want to and make it affordable...:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

1. The stepping stone method. I have read that there is no availability to purchase an affordable house. That is not completely true. There are affordable houses within your grasp but they are not your dream house. You must understand how to play the market. Understanding the real-estate market is the key to getting into the house that you want to own. I am going to explain two methods on how to get into the house that you want to and make it affordable.

1. The stepping stone method. It's very simple you buy a house for 120,000 they still exist. (On this purchase you must do 100% financing) now this property does need some work but is livable. Now the best part about this property is that it is a "fixer-upper" and once the improvements are completed you can make a profit on the property, let's say the property would be worth 140,000 to 150,000 if you fixed it up. Sell that house and buy a more expensive house lets say for 180k, you put down the money that you made on the last house that you sold. If you do this you will put about 10% down on the property that you want to buy. Depending on the sale price of the other house which is around 20-30k a 180k house would have a mortgage of 160k to 150k. The payments on this mortgage would be 1024 P&I per month PITI would be 1324 per month @ 7.5% interest on a 50 year balloon; or a 50/30. Now I have seen the rental prices for houses in ..:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Brevard County, which is rite in line with the rent on a 3-2 ranch style house. BTW the payments on the 120K house would be 1024 piti so for 250-300 more you can step up to a better property. The trick is to keep the property you are living in and fixing up for 6-12 months.

1A the improvements you should make.

Never buy a "fixer upper" that has structural defects, this can be extremely costly. EX roof, foundation load bearing walls. Always get a mechanical inspection when buy an older house, and put a 7 day option period in the contract that is contingent on the inspection Only get a house that may need cosmetic work. EX the house is still stuck in the 1960's. I have seen a few of those around. Make improvements such as new appliances, carpet, and tile; upgrade the fixtures, paint and exterior improvements. Do as much work as you can do your self to save on money for the project. Set up an improvement budget and stick to that budget. Remember everything is negotiable. Understand that when selling a house the little thing are everything, go with neutral colors to interior design a house, remember you may love red or blue but there is a good chance that of a potential buyer not liking it.

2 create passive income to cover what you want. I am sure many of you have heard the old adage a house is your biggest asset. That is true to a point. To get to the bottom of this you must understand what the difference between an asset and a liability is.

Simply put an asset is an item or investment that puts money into your pocket, or generates income.

A liability is an item or investment that takes money from your pocket or creates a debt.

So is a house an asset, the answer yes and no, the only way it is an asset is if it puts money in your pocket, example building equity through market conditions, and using that equity to buy money making assets such as stock bonds or any other asset off of the cash that you can get from your equity that is greater then the interest paid on the money borrowed or the net cash flow is greater then the payments on the money borrowed. So in order for your house to be an asset it needs to build equity that you have availability to access. Now one key point to this is you need to have the credit to be able to gain access to your equity.

The other way a house can be an asset is to create passive income from the property. THIS DOES NOT MEAN TAKING A LOSS OR A BREAK EVEN!!!

You must make money on the passive income or net return income on the property once the expenses for the property have been paid which are PITI and any management fees on the property. To even start to get into this realm of investing you need to be strong financially and with your credit. The best way is to make passive income through the creation of an owner financed note with your mortgage on the property being an option arm. Example you purchase a property for 180k put 10% down finance with a cash flow arm your total payments would be 961 per month, sell the property to a borrower that make a good amount of money and charge them an 8.5% IR on your note with a 50 year note their payments are 1604 per month you make a net profit of 643 per month, that pay for 1/2 of the mortgage you would have on the property that you are living in.

The issues you are seeing with the market in Brevard County is Location  Location. You live in a desirable naturally beautiful area of the country, this spike in prices was inevitable but if you take the rite steps you can afford to live in paradise, you just need the financial skills, and financial IQ to make it work.

If anyone has any question give me a call my phone number is in my signature. It's very simple you buy a house for 120,000 they still exist. (On this purchase you must do 100% financing) now this property does need some work but is livable. Now the best part about this property is that it is a "fixer-upper" and once the improvements are completed you can make a profit on the property, let's say the property would be worth 140,000 to 150,000 if you fixed it up. Sell that house and buy a more expensive house lets say for 180k, you put down the money that you made on the last house that you sold. If you do this you will put about 10% down on the property that you want to buy. Depending on the sale price of the other house which is around 20-30k a 180k house would have a mortgage of 160k to 150k. The payments on this mortgage would be 1024 P&I per month PITI would be 1324 per month @ 7.5% interest on a 50 year balloon, or a 50/30. Now I have seen the rental prices for houses in Brevard County, which is rite in line with the rent on a 3-2 ranch style house. BTW the payments on the 120K house would be 1024 piti so for 250-300 more you can step up to a better property. The trick is to keep the property you are living in and fixing up for 6-12 months.

1A the improvements you should make.

Never buy a "fixer upper" that has structural defects, this can be extremely costly. EX roof, foundation load bearing walls. Always get a mechanical inspection when buy an older house, and put a 7 day option period in the contract that is contingent on the inspection Only get a house that may need cosmetic work. EX the house is still stuck in the 1960's. I have seen a few of those around. Make improvements such as new appliances, carpet, and tile; upgrade the fixtures, paint and exterior improvements. Do as much work as you can do your self to save on money for the project. Set up an improvement budget and stick to that budget. Remember everything is negotiable. Understand that when selling a house the little thing are everything, go with neutral colors to interior design a house, remember you may love red or blue but there is a good chance that of a potential buyer not liking it.

2 create passive income to cover what you want. I am sure many of you have heard the old adage a house is your biggest asset. That is true to a point. To get to the bottom of this you must understand what the difference between an asset and a liability is.

Simply put an asset is an item or investment that puts money into your pocket, or generates income.

A liability is an item or investment that takes money from your pocket or creates a debt.

So is a house an asset, the answer yes and no, the only way it is an asset is if it puts money in your pocket, example building equity through market conditions, and using that equity to buy money making assets such as stock bonds or any other asset off of the cash that you can get from your equity that is greater then the interest paid on the money borrowed or the net cash flow is greater then the payments on the money borrowed. So in order for your house to be an asset it needs to build equity that you have availability to access. Now one key point to this is you need to have the credit to be able to gain access to your equity.

The other way a house can be an asset is to create passive income from the property. THIS DOES NOT MEAN TAKING A LOSS OR A BREAK EVEN!!!

You must make money on the passive income or net return income on the property once the expenses for the property have been paid which are PITI and any management fees on the property. To even start to get into this realm of investing you need to be strong financially and with your credit. The best way is to make passive income through the creation of an owner financed note with your mortgage on the property being an option arm. Example you purchase a property for 180k put 10% down finance with a cash flow arm your total payments would be 961 per month, sell the property to a borrower that make a good amount of money and charge them an 8.5% IR on your note with a 50 year note their payments are 1604 per month you make a net profit of 643 per month, that pay for 1/2 of the mortgage you would have on the property that you are living in.

The issues you are seeing with the market in Brevard County are Location. You live in a desirable naturally beautiful area of the country, this spike in prices was inevitable but if you take the rite steps you can afford to live in paradise, you just need the financial skills, and financial IQ to make it work.

If anyone has any question give me a call my phone number is.

866-360-9148