25 to Life - Paying Off Debt

The hardest part about making property investments for me is paying back the loans and spending money on repairs. Obviously I don't like the feeling of losing money, but you must give in order to receive. For me to get loans in the future, I better pay off my current ones on time. For me to keep tenants in my house, I better make the necessary repairs.

Most of the rent I collect from property 1 goes to paying the mortgage. The small amount that I pocket monthly goes towards repairs and renovations. There's no money left for me to save.
I'm broke!

So why buy properties if you're not making any money?
For me, this is a long term investment. I know I won't be making any money now, but in many years when I want to just be barefoot and pregnant, I will be able to still have income to facilitate my lifestyle. Again, this is a LOONNGG term investment. I'm doing this for when I no longer want to work. I'm young and strong now - I need to go to work to network and make connections.
     
In the last post, I mentioned that I borrowed $15,000 from my credit card and another $15,000 from a trusted person. How am I paying off those debts?

1. I focused on paying off the credit card first

    Because the credit card company gave me only 1 year of interest free payments, I had to calculate how to pay that off quick! Here's how:  I divided 15,000 by 12 months. That came out to $1250 per month. So every month, I paid $1250 on the credit card until it was all paid off. Some months I couldn't pay as much, but I would make it up during a good month. When I say "good month" I mean tax-return season. LOL!

2. I paid the trusted person

Again, I divided the $15,000 I borrowed by 12 months and paid $1250 per month. I already knew I could do this because I did it with the credit card company. The person also knew I could do it because they witnessed what I had done the prior year.

All in all, it took me 2 years to pay off a $30,000 debt. Not bad right?

Questions I received from readers:

1. What type of credit card gave you 0% interest for a year?
     Bank of America travel rewards card.

2. How long before you make back your money on this  $50K apartment?
13 years. Although within 13 years the value may go up, the rent may go up, and I'll make back my initial investment faster. That's the hope.

3. How long before you make back your money on property 1?
I plan to pay it off in 10 years. It'll take another 5-6 years of collecting rent to make back the purchase price. All in all - 16 years.



Stay tuned. . .