In 1998, I built my own home on ten acres with a mortgage of $84,000 on four of those acres and the home. In 2000, I sold five acres for $13,500, leaving me with a mortgage balance of $70,500.
In 2001, I took a cash out loan against the home for $145,000. It paid the original loan off and left me with $74,500. With this I built another home on a piece of property I bought for $21,000. I am now mortgaging this property for $120,000. I plan to invest this money also.
I live in the second home, and have the first home leased for $1,200 per month, and the note payment is only $1,087. I really don’t think I am doing too bad. Now that I have a little money to work with, I can do better. The way I see it, I have made an additional $120,000 in five years.