First, I am a noob around this forum. Usually I be a part of a forum for awhile before the thought of seeking assistance from its members would enter my mind. However, a member of this forum suggested I come here and present the same situation to you all. So, here goes.

Wow. That is about all I can say really. My wife and I were making my steps to improving my families position after reading Rich Dad, Poor Dad as well as other books. After finding out our biggest "asset" was not much of an asset afterall, we looked into selling our house. At first, it didnt go well. The market was going sour and it didnt look like we could walk away with our shirts intact. So, we waited and decided to focus elsewhere. Seemed to go well, at least at first.

Now matters are worse. We live about 15 miles from foreclosure ground zero. Ok, looks like we will have to sit this one out until the smoke clears. Wrong. My employer laid me off last week and now our source of income went with it. Fortunately, we have a cushion and a severance that will keep my head above water for a few months.

So, it seems like I have some econo-sized lemons and I do believe its time to make lemonade, even though it is going to be some bitter juice. Short sale doesnt look like it will fly due to the enormous inventory going at despirate prices. Foreclosure makes my stomach turn when I say the word. The only sources of income available take me to other states and, unfortunately, it doesnt allow room for two properties.

Ok, so rental. Might take a bath due to the low price of rent right now (obviously not the only person considering rent over foreclosure) but, if done right, seems like the best alternative. So I'm thinking and I recall something I read in one of the Rich Dad books. I tried looking for an exact caption but I recall it being a minor point, more of an example. The section I am referring to was about a husband and wife who owned a rental property of some sort. The husband ended up renting the land to the wife and the wife rented the building to a customer which, in the end, provided them with tax exemptions. Does this sound familiar to anyone? Does this work for rental housing?

If someone has some sugar to add to my lemonade, feel free to share. I'm still working on my angle to get out of the rat race and feel it will come, but I'm sure it doesnt start with me in stranded in an abyss of debt (at least I hope it doesnt).

 

Wow... overwhelming responses. I will try my best to respond to them.

Russ H: Yeah, your partially correct. I am looking for positives. If I focus on the negatives too much, I'll end up on my face. The negatives are a small motivator to get my arse in gear and come up with a solution. As for the job, I could find a few jobs in my area (the one's that didnt tell me I was overqualified or dont have specific experience) but it wont pay for this house and us. It has to be one or the other. My choice is my family first. So, if I accept a low paying job, I will have to foreclose since I will eventually run out of money in my account. Not acceptable. There has to be something else. I will agree with your point on the new start. This is the second time this is happened (this time its better and its worse), which is why I have started on "educating" myself. I'm rather sick of this scene. No one should be accustomed to this cycle.

yveskleinsky: Hello again . So, at first I wanted to sell. Problem is, it isnt. So, I'm looking for options. Finances are: unemployment (hopefully soon), severance (11 weeks of pay/benefits), and my nest egg (not millions but modest). Between all of those, I have probably 8 to 12 months before I get in trouble, and that will leave me penniless. I'm aiming for 2-3 months since that may put me in a better position than before.

AroundTheWorld: 1) 2 kids and a wife 2) no other income, wife makes enough to pay for daycare and thats about it. No family in the area to watch the kids while she works. 3) No BUT rent will help considerably. With a little cooperation from the bank (80/20 loan, 20 is variable and much higher interest rate. Trying to negotiate for better terms), I should be able to make up the difference and survive in the new area until I sell the house. 4) I have skills, learn new ones all the time. For instance, I taught myself how to rebuild a front suspension on my old Corvette. Never had a single day of automotive training in my life. Granted, that particular ability may not make me a millionaire though its my example on my ability to learn. I have the ability to learn most things (never been good with foreign languages). Not only am I capable but not afraid. Since no one is going to "give" me my chance, I have started makes steps to make my own chance. I been trying to learn how to translate my skills into a business... that is where the training comes in. So, I have the ability for phase II, I just need to learn the "how" part.

nomadjanet: I'm an electronics technician, not an electrician. Funny that you mention that though, one of the jobs I am interview for is for electrician work (long story). Like my profile says: Electronics Tech by trade, jack of all by nature. I have worked on electronics (in every form), electrical, electromechanical, and mechanical ranging from nuclear reactors, gas turbines, satellites, and in the semiconductor field as a repair tech. Trust me when I say, all of these things share some fundamentals but that is about it. Some call me overqualified, others not enough industry specific experience. The others, well, as I explained before they pay enough for house or the family. All except the jobs in other states which pay enough for the family and a rented house.

Whew... ok I hope that explains a bit. Thanks for your input, I greatly appreciate it.

 

Well, one job I have line up is pretty much a definate and its in Phoenix. The other, which is better in some ways, is in Austin, TX. The unemployment doesnt really have me concerned, I can find other work. The house is my real concern.

 

Aroundtheworld: 1) I'm not too concerned about the job because I have two jobs lined up. One is done, waiting for the offer. The second looks very positive and will most likely end up with them making me an offer. The guarantee is a great job in a place I'd rather not live with a really great supervisor. The second job is a good job that I have current experience in a place I really want to live that pays well. So, I'm rather positive the job problem will no longer be a problem in a week. 2) As for equity, there is none. There was equity; however, prices have dropped significantly in the last year. With the 18 month inventory in this area, house prices have a huge range right now (+/- $50k). 3) It really depends. I wont even consider renting it unless the second loan lender will lock the rate. I wont take the chance that the rate will increase to the point I cant afford and creating a breach of contract with my tenant. At the current rate, the spread between the loan and rent will be somewhere between $600 - 800. That doesnt include the $5k property taxes and any sort of upkeep. I spoke with a VP in the lending department of my second loan lender. He is going to look into what can be done. I am not holding my breath but I am going to do what I can before my hand is forced.

Sehcill: She doesnt work, hasnt worked since my first child has been born. That was more of a point why we are a single income family.

Russ H: Which plan, the thrive plan? As I said, I have been working on the "how" part. What skill do I have that translates into something someone wants? Investing also seems good if I can keep my "emotion" out of it. On paper, I have done great. In real life, I didnt do as well and it was because of my emotion. I get that in check (which will come with confidence), I think my real investments will do great as well.

 

Sorry about the silence, yesterday was an extremely busy day for me. Seems that some lines of communication went down between my recruiting company and possible future companies. Spent pretty much all afternoon and part of the evening getting the right information to the right people.

Russ, I took a gander at the link. Yes, I have started it but it wasnt this week. Getting to know myself is something I have been working on for awhile. I started looking at "what I am good at", "what am I capable of", and "what I cannot do". The cannot do list is what I have been working at but it takes time to teach yourself new skills without a mentor since you have to make sure your doing it right.

The "what do I want" section I answered first though you had a good point by knowing who you are first before setting a goal. I have quite a few wants, so the list is rather long. Suffice it to say, my ultimate goal will allow me to get some or most of my wants. I am going to work on the "like" and "dislike" lists, I think that is a good idea.