After saving for about one year we decided we were going to purchase an income producing property.  I had been trying to purchase a “no money down” property, which in this case means that you market to find a property that someone else wants desperately to get rid of and put it under contract.  Then you market that property to someone who wants to buy but cannot qualify through a bank and sell it to them on a lease option.  It is all legal and works out great for everyone involved.  The problem for me is that marketing skills are not my strong point. 

Finally, we decided to buy an REO, real estate owned, property from a bank, a foreclosed house.  We located many and viewed around 40 properties.  We even put a few bids in.  But, each time we did so, someone else always ended up buying the property first. 

After much frustration and prayer we decided to take all of our savings and pay off debt.  We were able to pay off both of our vehicle loans and a couple of credit card bills.  This left us almost competely debt free, other than a student loan.  We were really excited as now we would hopefully be able to save more money. 

Unfortunately, life and expenses happen and the increased savings never materialized!  But, we did get more serious about trying to figure out how to finance an investment property.  I’ll let you know what we did in my next blog!