Amazing read! I wish this was a required book in college or something.

Getting down to what I learned:

  • How much “home” can you afford? Most people can do 29% of their gross income on housing (aka mortgage pmts, property taxes, and other regular costs) and as much as 41% with no debts!
  • Make savings automatic!
  • If you are looking for a fast way to save for a home, the bottom line is that it’s all about the small stuff
    • Latte Factor
    • Double Latte Factor
  • FICO stands for Fair Isaac Corp.
  • Get your credit report and make sure there are no mistakes… if you spot some, submit a request to fix them
  • Only consider fixer-upper properties that are at least 20% below prevailing market prices
  • When closing, make sure you ask and read your HUD-1
  • Interest on a mortgage for homeowners or real estate investors is tax-deductible (up to a certain amt)
  • 1031 exchange (Starker Exchange) … when you sell a rental property, you don’t have to pay taxes if proceeds go to another property within 180 days
  • Easier to get a home equity loan than a mortgage (for those with a house already)
    • Recommended to only use to buy more assets
  • Have 6 months of emergency funds saved
  • If buy a rental property, have 3 months of rent saved

Hope these small snippets motivate you to read the book. :)

Cheers,

Gaby