Months ago I submitted an offer on a duplex and it was accepted by the seller. Today Bank of America approved the deal – which was required because the seller is trying to sell it for about $20K less than he owes on it.

I like the property. It’s in a great location in a pretty well kept neighborhood (I might actually even live there), and it’s less than 10 years old. The cash flow projections look great. The rent it draws would be the highest of any of my properties, though the fixed costs are comparable. Also, it would give me location diversity as it’s not near any of my my other properties.

The only problem is that while I’ve been waiting to hear back about the contract, I put in an offer and closed on a foreclosure. And I literally just sunk $10K into renovating it. I now already own three rental properties; am I getting in over my head?

I think I’m just feeling that way because I am just on the tail end of the closing and leasing process with my most recent purchase; if a few months had gone by I wouldn’t be as concerned.

Reasons I’m Concerned:

• I’d have to put down 25%, or $51,250. That’s a huge chunk of my liquidity.
• With four rental properties (8 units) I could no longer cover all or most of the ongoing expenses with my salary if I faced lots of vacancies or repairs all at once.

Reasons I Want To Do It:

• This property is one I’d be comfortable managing and holding long term. It’s newer and in a nice neighborhood of mostly owner-occupied homes; I’d actually live there if it came down to it.
• I could get great financing: 5.375% fixed for 30 years with no points at closing. If I ever want to invest in real estate, now is the time with terms like that.
• The property rents for $3,000 ($1,500 each side), and the fixed costs (mtg/ins/tax) would only be $1,400 a month.
• My goal was to buy one property a year for 10 years (or as long as financially feasible). This is in line with that goal. It’s now or never!

What do you guys think? I’d still have well over $100K in cash reserves after closing. Of course regardless of what I decide, I have to convince the bank – and my family – that this is a good idea.

I recently posted my Millionaire To Do List (inspired by Budgets Are Sexy), and I got a lot of reader feedback with some very good ideas I’d left out.

Here are a few of them:

• Limit vehicle purchases to one every 10 years or more
• Marry a carpenter
• Marry once–divorce is a financial nightmare.
• Maintain good health
• Always set aside a portion of our cashflow to do fun things now; they don’t have to be expensive but they don’t have to be put off either.

Other suggestions I’m not sure I’d take include buying life insurance on my parents, not saving for kids’ tuition, not maxing out retirement plans, installing solar panels, and eschewing leverage.

Keep the suggestions coming! This kind of reader feedback is what makes blogging so fun.

If you’re reading this, you probably want to be (or already are) a millionaire one day. A million dollars sure ain’t what it used to be, so for members of my generation (Gen Y) becoming a millionaire isn’t just a dream – it’s almost an imperative in order to ensure any kind of security or comfort when we no longer work!

So what are you doing about it? J. Money over at Budgets are Sexy has devised a millionaire to do list and challenged readers to do the same. Here is mine!

In order of Importance:

Personal
1 – Contribute 6% to my Roth 401k to get full company match.
2 – Max out Roth IRA every year that I’m eligible.
3 – Maintain 6 months of personal expenses in cash.
4 – Max out Roth 401k every year that I’m eligible.
5 – Maintain flexibility by minimizing consumer debt and fixed expenses.
6 – Continue to spend under $50,000/yr regardless of income increases.
Save any surplus in reserves in order to achieve #5 and #7.
7 – If I ever leave my job, consider starting a business or buying a franchise.

Rental
8 – Maintain one year of fixed rental expenses in cash reserves.
9 – Pay down mortgage debt consistently (no cash out re-financing).
10 – Use any positive cash flows to boost reserves, pay down debt, or reinvest in a new property (no capital distributions for personal spending).

What do you think? Any other suggestions or ideas? What’s on your list?