Well, either I’m completely nuts or I just made another smart move? I bought another 2 bedroom condo  (this one is closer to home) in Burnaby near the Lougheed Mall area.  Rent for this 2 bedroom should be between $1300 – $1400, and I bought it for $185,000. Personally I follow what Ozzie Jurock preaches which is the 0.75% rule. Your rent should be 0.75% of the purchase price. If you do the math 0.75% of $185,000 is $1,385.00.  If I get rent of $1300 – $1400, then I am following the rule.

What the hell does the 0.75% do?

If you can get rent of 0.75% of the purchase price then the rent will be able to cover all costs, such as taxes, strata fee and monthly mortgage. So you put your down payment and the renters will over time pay your condo in full, all you do is put down the down payment of 25% and the rent does the rest. Once again 0.75% of $185,000 is $1,385.00. Get rent of $1,385.00 or better and your investment covers itself nicely.

This my friends is how to build a real estate portfolio the RIGHT WAY. I don’t care if the real estate market goes down or up because my rents will cover all my expenses, through good and bad economic situations. As long as I can find renters then I am safe. This is a bullet proof way of retiring early, nevermind the B.S stock market. And f*ck RRSPS, just another scam if you ask me.

I lost $5,000 in the dot com stock crash back in 2000 and I learned my lesson for good. I will ALWAYS stick with real estate. Being a landlord might sound boring but it will make you wealthy in the long run, and it’s the safest investment as long as you have a clue what you are doing. It’s not that hard, all you need is a good realtor and they will do all the work for you. This condo gets me 1 step closer of my goal of having $20,000 in rental income per month.

And if you’re one of those people who think that renters will ruin your house and burn it to the ground it can happen. But don’t come crying to me when you’re 64 years old and still working for the man. Nothing in life is a cake walk, but realistically this is probably the quickest and safest way to get to financial freedom. Everyone needs a place to live and they always will.  Don’t tell me about the economic depression either, blah, blah, blah.  If you believe every word of the news then you’re the BIGGEST SUCKER out there………………

Get off your ass and make your life what you want it to be!

Anyways I am tired this evening, my daughter kept me up in the wee hours of the morning. It’s time to go relax and take a bath. Let the stress wash itself away.

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