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Our main short term goal is to survive. In other words we want any houses we buy to be able to support themselves (i.e. have positive cash flow) and have enough instant equity built in from day one to be able to draw on in case of emergencies. So the main key here is to buy low and in this market (late 2008) that is easier to do than at other times. However, you can always buy low in any market, deals are made and not found. NO NEGATIVE CASH FLOW! We don't believe in buying for the tax benefits alone, if the numbers on a house don't make sense without considering taxes - it isn't a deal.
After we have a few houses that are taking care of themselves, we want to continue buying houses but go into more of a debt reduction mode. Take all of your positive cash flow from all houses and focus them on paying one house off totally. Of course you can redirect that positive cash flow to emergencies (i.e. getting laid off). Focus on the house that will get paid off quickest and hit it like a laser beam each month. Once that house is paid off, focus on the next house then the next etc. The more you do this, the ball will continue to roll faster and faster. This whole process will take years, but slow and steady wins the race.
Why has God called us to do this? Our ultimate goal is to expand the Kingdom of God and make disciples of all nations. This world is hurting and dying and desperately needs Christ, so we not only want to be able to give more and more to the Kingdom, but also to be able to go to the mission field ourselves. Our end goal in real estate is not to become rich or even wealthy (you do know the difference?) but to become free. Free from the concerns of money, i.e. financial Independence.
Pro 30:7
"Two things I ask of you, O Lord; do not refuse me before I die:
Pro 30:8
Keep falsehood and lies far from me; give me neither poverty nor riches, but give me only my daily bread.
Pro 30:9
Otherwise, I may have too much and disown you and say, 'Who is the Lord?' Or I may become poor and steal, and so dishonor the name of my God.
We want to be freed from the concerns of money so we can concentrate more fully on God. The Bible does not say that money is the root of all evil, it says the *love* of money is the root of all evil. Poverty causes people to love money just as do riches. When you lack, your thoughts are bent on how you will make ends meet which becomes an idol. Wealth will probably be a byproduct on the path to independence, but it is not the end goal. Serving God and loving God the best way we can and have been called to is our end goal.
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