The Ramsey Show - App - Here’s How You Make Money in Real Estate

Episode Date: April 26, 2022

Dave Ramsey & Ken Coleman discuss: When both spouses are looking to make a career change, Paying off student loans when a baby is on the way, The best way to make money in real estate, Pausing retirement to go back to school. Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6

Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. At Ramsey, we help people build wealth, do work they love, and create absolutely real and authentic relationships. Dr. John Deloney joins me right now here on the show. The phone number is 888-825-5225. He has a brand new book out that is going absolutely bananas. It's done very, very well. Thank you to all of you that have purchased own your past change your future it's only 20 bucks at ramsey solutions.com and uh the book tour continues the book came out one week ago today and so we are going zoom zoom continuing to be out there and having him out

on the road meeting with you people he and in a few minutes is going to jump in an airplane and head to dallas tex right? That's right. Can't wait, man. We're going to have a blast. It's going to be a lot of fun. And so by the time you folks in Dallas hear this tonight, he'll already be there. So there. That's right.

We'll be doing media in the morning and then speaking at some businesses around town, and then we'll be ready to rock and roll the book signing tomorrow night. So tomorrow night, the book signing at Dallas, Texas. That's Wednesday, April 27 27th 6 p.m the barnes and noble at prestonwood town center on beltline road in dallas texas now phoenix uh we had over 100 100 150 folks show up for the book signing there so um it was a madhouse and we're going to i'm going to dallas you're on your reputation is on the line here. And I'm a Texas kid. You can't do me wrong, Dallas, so show up.

We're going to have fun. You've got to beat Phoenix. Easy. We're throwing down the gauntlet here. You've got to have more people than Phoenix had. I don't know, man. Phoenix showed up big time. They were awesome.

Yeah, they were a lot of fun. It was good. We'll have a blast. And, John, you'll be answering questions, talking, signing books, so that kind of stuff. We'll have all kinds of fun things, yeah. Yeah. If you haven't listened yet to the Dr. John Deloney show,

you need to tune in and pick that up. Millions and millions of listeners already on podcast. It is a blast-off podcast that has done extremely well on Ramsey, the Ramsey Networks, as well as this new book. So if we were going to distill down in the next moment or two what Own Your Past, Change Your Future is about and who it's for, what is it? It's for almost all of us, people who are just trying to figure out what's the next right thing to do in their life.

If you find yourself anxious or spun up or exhausted or sitting next to your husband or your wife and you don't even know if you know them anymore. It's for basically all of us. It's folks trying to say, okay, the world has happened to me either two years ago or 10 years ago or 20 years ago. What do I do next, right? And, man, that book walks you through how to own what happened to you

and then how to make the next right decisions moving forward, how to heal. Well, it's doing really, really well. it's highly rated on amazon all week long and own your past change your future a not so complicated approach to relationships mental health and wellness we've sold tens of thousands of copies here in the first week that it has gone out and i'd love to break a hundred thousand on it that'd be pretty cool it'd be fun man for the first week out that'd be neat and um so it will be on the bestseller list we think it'll probably be number one we'll see when the bestseller list comes out this week and how it's done but um this comes down to if you've listened to john here on this show or on his show and you said gosh i wish i could sit down kneecap to kneecap with that guy i think i could

unpack some things about some of the stuff that's happened to me in the past, some of the stuff I'm dealing with right now. Well, this is his way of doing that. When you read this book, you will feel like you're sitting having a cup of coffee with John. I have both read the book and had a cup of coffee with John. So I can tell you that they are remarkably similar. For better or worse right but in classic ramsey style it uh is it's easy it's not mumbo jumbo it's easy to understand um but it deals

with the person in your mirror and gives you some tools to say okay when i'm anxious this is what i'm doing or from this trauma that i've dealt with or these all these negative people or negative uh events have too much real estate in my brain how do i deal with that this morning i was in a meeting or from this trauma that I've dealt with or all these negative people or negative events have too much real estate in my brain. How do I deal with that? This morning I was in a meeting and somebody that works on the team with me said, when I started working with you, you handed me a couple of books and said, if you're going to make sense of what I'm trying to do, read these.

And halfway through the first one, it's like, I don't even know what this person's talking about. And I thought I had handed them three of the simplest books, right, from my nerd world. You are a nerd. Exactly. And so this book was a concerted effort. And that person circled back and said, I got this one. This one makes sense to me.

I understand what you're doing with your book, right? And so that was really the point, man. It's demystify the proven take all the smoke and mirrors. The proven stuff that's out there. That's right. Psychology is such a twisted, weird world. And there's so many, such a wide spectrum of viewpoints on how to deal with psychological It's like finance, man.

Everyone's got an opinion on this thing. Yeah. Exactly. Exactly. And there's a path that works all the time, every time, and it's not sexy, and it's not fast, and it's not going to be shiny fireworks in the sky. It's just like it's a decision. I want a better life than what I have.

I want to stop family trauma. I want to be able to sleep when I lay down in my bed. I want to be able to laugh when I get up in the morning, right? I want to live a different life than the one i've inherited or the one i've seen what percentage of negative uh psychological things that people deal with came from them being passed down from their parents and their grandparents and their grandparents grandparents and so on what percentage would you say i would say if not a hundred very very close well i mean sometimes people just have trauma happen to them yeah you you get you get the car wreck you get

the divorce you get the abuse those things happen you know you get mugged right that's not life happens you know then that that trauma can throw you off kilter but but but how you respond to that trauma is all based on your story what you see it's right it's the way mom and dad deal with conflict. It's the way granddad dealt with issues that were uncomfortable or when Billy got arrested or uncle so-and-so. We all have uncle so-and-so. Got in trouble at school or whatever. Those are the way we learn how to deal with conflict and how to deal with fights. Is that somebody else's fault or is he a victim? That's right.

Uncle Crazy's a victim? Or Uncle Crazy's crazy. There you go you know and how you handle it some parents fought in front of their kids and now there's some research that suggests that um having disagreements in front of your kids is actually good because then they get to see the disagreement and then the reconciliation healthy conflict yeah not idiotic throwing stuff and yelling and abusing each other cussing and um yeah but that conflict and some of us grew up my parents took their arguments to the bedroom and because that was the narrative of the day don't don't have disagreements in front of your kids they'll scare them and now i look back and think oh the first couple years i was married when me and my wife would have disagreement my first thought was well i guess this is over

i guess you know because i don't have a picture of what that looked like and we learn, no, this is, disagreements are part of two people doing life together. Here's how we do that honorably. And here's how we do that working towards something, not just trying to burn each other to the ground. So I think all of us have stuff that we have just picked up in the stories we were born into, the ones we were told. And then it's our job to look and say, I want a different legacy for my family. I want a different legacy for me. That's what it comes down to, owning your past. I've got to make some changes.

I'm going to own my past. That's right. My family, you know, love them. But this part of it, I'm going to own it so it doesn't happen again. This part stops with me. It stops here. That's right. It ends here.

Yeah. And that can be something simple or something really, really nasty and dark. That's exactly right. Either way. Everybody in between. Own your past, change your future. Dr. John Deloney will be signing books. Dallas, Wednesday, April 27th at 6 p.m.

The Barnes & Noble at Prestonwood Town Center on Beltline Drive. Be there Wednesday night. Dallas, you've got to turn out. You've got to beat Phoenix. The gauntlet is thrown down. John, have a good trip. Thank you, my brother. Appreciate you. I just saw a study that really made me sad. It showed that families owning life insurance in the U.S. was at its lowest point since the 1970s. After what we've been through the past few years, I'm just lost on how people don't make this more of a priority.

How are you going to make sure your family needs are met if something happens to you? This is why getting term life is an absolute necessity. Rates have never been cheaper, and the whole process to apply is pretty simple, with many companies not even requiring an exam anymore. This is why I send you to Zander Insurance, and I have for almost 25 years. They'll make sure you get the right protection at the lowest cost possible, and they're there for you and your family every day. I challenge all of you to make sure your families are protected.

It needs to be a top priority. Call Zander at 800-356-4282 or visit zander.com. That's 800-356-4282 or zander.com. Ken Coleman Ramsey personality is my co-host today. Dr. John stopped by before he jumps on the airplane and heads to Dallas, Texas. So Ken will be with us for the rest of the show. Thank you for joining us. The phone number is 888-825-5225. As we talk about doing work that you love, as we talk about creating real relationships, as we talk about building wealth, imagine the energy of a jam-packed arena filled with

people ready to experience what it means to live life to the fullest. Picture all of your favorite speakers together on one stage, empowering you with tools and principles that will create unstoppable momentum in your life. That is Smart Conference. Yep, Smart Conference is back. It's been three years. We're so pumped to get this event back on the road. We're in Dallas. We're headed your way Saturday, October the 22nd.

And the Smart Conference is our biggest event of the year. It's a day long. And when you spend that day with us, you will leave smart. It's that easy. You don't want to miss this. All of the Ramsey personalities will be there speaking on personal growth, on money, on millionaires, on leadership, on mental wellness, on relationships, on your career. It's all going to be there, and you're going to leave with the knowledge and the motivation you need to live the life you want. All of us will be there. Plus, we'll have a marriage

segment from our friends Craig and Amy Groeschel from Life Church, one of the biggest churches in America, one of my good friends. He's one of the top leader pastors out there. And, man, he's really good material on leadership. I mean on marriage and leadership, but this is on marriage. So be sure and sign up for Smart Conference. It is coming up October 22nd. It is not yet sold out. Tickets are only $39.

It's a great price for a full-day event. We should charge $339 for this event. Get your tickets right now before they sell out. Go to ramseysolutions.com slash events to learn more. Our question of the day comes from blinds.com. They have a 100% satisfaction guarantee. That means even if you mismeasure, you pick the wrong color, they'll remake your blinds for free.

Free samples, free shipping, and with the new promos they run every month, you'll save even more. Use the promo code RAMSY to get the best deal. Today's question comes from Rachel in Alaska. My husband is a stay-at-home dad, and I work for a school district. We would like to flip our roles, so he's the provider, and I stay at home with our baby. He recently passed an exam to become an actuary and needs an internship

before an employer is willing to look at his resume. Childcare here is non-existent with COVID shutting everything down. Internships don't pay as much as I make. From my job, we own two homes, living in one and renting the other. I'm considering babysitting other people's kids in our home while my husband does an internship, but there is no guarantee my husband will find employment afterwards, and the income gap would leave us unable to pay car insurance and buy groceries. We currently have $2,500 in savings and $1,600 in our checking.

No debt. Outside of the mortgage, can you offer any advice in trying to make this transition? Okay, there's a whole lot of stuff here just all over the place, and I think that we're focusing on all of the hurdles as opposed to maybe some of the sacrifices we're going to have to make that don't require us to sacrifice our income, but other types of sacrifices. The internship, how do we get the internship while he's taking care of the kids? We're going to have to make some sacrifices, find a way to come up with the money for the child care for him to get that internship. That's where I would go first. If the internship is what

is absolutely necessary, it is the gate, if you will, to walk into this future to then get him employed and you be able to switch to the life that you want staying at home, then there are ways to find child care for a season for him to get that internship. And it's just a function of where there is a will, there is a way, an old phrase, but it's really true. So, Rachel, the Bible says how the abundance of the heart, the mouth speaks. And the language you're using of absolutism is inaccurate. And it says to me that you're a little bit stuck in victim side, and I want you to get out of that.

I want you to rise above that and say, okay, this is hard, but it's not impossible. Okay, and let me give you an example of the language I'm talking about. COVID shutting everything down. Child care here is nonexistent. Okay, what you're saying is that that no one in alaska keeps children i'm sorry it could be very difficult and it could be very hard to find and it might be a needle in a haystack but completely non-existent is an overstatement that's hyperbole you're exaggerating okay we won't be able to buy groceries not true you buy groceries first you might not be able to

pay something else but you won't be able to maybe car insurance i mean that might be the down the line down there but groceries are first and you'll have the money for groceries so that's drama oh we're all going to starve to death entered into your discussion here that reveals where your head is on this. Instead of trying to figure out a way to do this, you're throwing up, as Ken said, all the hurdles and all the barriers. That's what this thing drips of as I read through it. So here's the thing. This is going to be a tough season for you guys to make this transition.

It's not going to be easy. He's going to be working extra, delivering pizzas or DoorDash at night, and you're going to be keeping kids, and you guys are going to be living on beans and rice, and you're not going to see the inside of a restaurant, and it's going to be really hard, but you're going to have searched every single rock, every timber, every tree that a child care provider could have possibly hidden behind

so you can keep your job and you're going to go do the impossible because you are a victor not a victim is it easy absolutely it's not easy but it's but when you get the other side of this five years from now and he has that big job and you're able to be home with the kids like your goal is and he's able to be the actuary like his goal is it will have been worth it when you look back on it well the scary stuff that she's talking about here is assuming that she's going to walk away from her very good and stable job in the school district she's not going to do that you know to your point he's going to go work at night when she comes home and he's going to go bust his tail well he's got the money for chalk i know but he's got a but he's

got to come up with the money for child care yeah I know, but he's got to come up with the money for child care. Yeah, oh, yeah, yeah. And then he goes and interns. But you've got to find someone to keep him is what she's saying is the hard thing. Yeah, but it's just. You find somebody. Yeah, they're there. You just keep working it. I mean, you keep talking to the church.

You know, if your life depended on it. Right. You could find somebody. That's right. But she's not going to lose her income. She's going to stay in that job while he's interning. Yeah. And then they get to make the transition there you go that's it so um let me

tell you we always will participate in something with you that you're doing that's hard we believe in doing stuff that's hard that's worth it yeah we you know live like no one else so later you can live and give like no one else but living like no one else is impossible we're not going to line up with that one we're going to tell you no you still got to do it that's still how it is it's still how we did it both ken and i to get to be doing the things that we do today and to get to be uh who we are and and to have had the successes that we've had in different areas it's we've all paid a price and sometimes it was an unbelievable tough walk and it was hard and it was scary uh but all we

can ever tell you ken or me about anything we're talking to you about is if you do that it's worth it the other side of the rainbow it's there it's worth it go do it tyler is with us tyler's in topeka kansas hi tyler how are Doing well, Dave. How are you and Ken? Better than we deserve, sir. How can we help you today? I got a question on student loans with an expecting wife here. We are expecting in July $43,000 on student loans. Currently have 30 saved. Cool. on student loans um currently have 30 saved um cool and was wondering with the with the discussions with the the freeze right now on student loans whether we should hold on to that

money until it is required that we pay those or go ahead and get through delivery and things with our new boy here and uh then go ahead and make that payment. Oh, I'd get through the delivery, and I'd try to have the $43,000 when you get through. Here's the thing. All you've got for the freeze is the interest is frozen, so there's no interest right now. But you're in the middle of a pause on your baby steps,

your push pause, not play, because you've got a baby on the way, and we don't want you spinning down to nothing with a baby on the way. So we're going to have this pile of cash until baby comes. Now, what you're saying is baby may come two weeks after the freeze, and so you might have to pay two weeks' worth of interest. Right. Whoopee. Okay.

Yeah, it's worth it to have that pile of money so when baby comes, you're okay. Just be prepared to pay a little bit of interest. And the good news is that you didn't have to pay hardly any because the baby's going to come and it's just going to be a little bit. Thank God the whole time it wasn't building up. That could have been. This is the Ramsey Show. We'll be right back. Ken Coleman, Ramsey personality, best-selling author, is my co-host today in the lobby of Ramsey Solutions. On the debt-free stage, Reba and Michael are with us. Hey, guys, how are you?

Good. Good, Dave. how are you? Good. Good, Dave. How are you doing? Better than I deserve. New down is coming. Where do you guys live? Just outside of Louisville, Kentucky. Okay, not too bad a run to Nashville. Good to have you. And how much debt have you guys paid off? It was $138,000 in 10 years.

I love it. Good for you. And your range of income during that decade? It started out around, let's see. You know who the nerd is now? Yes, I am the nerd. So it started out at $104,000, and then last year it was $133,000. Cool. What do y'all do for a living? I own my own business, and I clean houses. Good. I am a truck driver for a food service company. Excellent. Excellent. Good. Okay. So what kind of debt was the $138,000? It was our house. Whoa! Looking at weird people!

Absolutely. Thus the decade. I get it. Yes. Yeah. So tell me the whole story. How far back does all this start? Well, our first big, what was it called?

When you buy a brand new car. That's not a good idea. Stupid tax? There you go. There you go. That was our first one about six months after we got married, which today is our 20th wedding anniversary. Oh, good.

So we just kind of kept that around forever. So I think it was around 12 years ago before we were like, we need to be done with this, you know. And so we got a hold of the CDs, the radio program, all that stuff. And then we decided, like, we finally got on the same page. So you went through Financial Peace University is what you're saying? Well, we kind of did, like, the CDs ourselves almost. Okay, the at-home study.

Yes. So we did that, and then that's when we finally got on the same page, and we're like, okay, let's actually do this. So we got rid of that little bitty debt i think it was like 10 000 in like what two months a couple months yeah yeah so i was like i don't deserve a debt-free screen because that was like too fast so let's wait for our house so um so yeah we got on the same page and then decided to tackle this after that okay just like that huh yeah so we refinanced we refinanced our house 10 years ago the uh, the week that our third daughter was born.

And we got it paid off right before her 10th birthday. All right. I like that. Happy birthday. Definitely. I love it. She's the debt-free kid. There you go.

I love it. Very cool. This is fun, you guys. All right, so basically you lived the first half of your marriage normal. Yeah. Had a wake-up call and said, okay, no way. And you blazed through the car debt and then tear into the house. It takes 10 years.

Yeah. It was hard, too. It is hard. Very hard. It's a long time. Yeah. Saying no, you know, keeping really old cars. I think our cars are older than our kids.

So, you know, so now it's like, oh, we get to save up and actually get some nicer things. Yeah. I mean, so that's really fun. We always talk about in these journeys what's on the other side of this for folks, right? Yeah. And it's always something a little bit different. You've got the kiddos. You're talking about cars.

But as you look back on that journey, you mentioned a couple times it was really hard. There's some stories there. A, was it worth it? And B, what are you most excited about in this future of truly being debt-free no house payment nothing well uh in the immediate future i think we're going to baby step some of the things in our house that needs to be replaced like we're going to start with a toaster oh we're going to work our way up to a little bit newer cars so that's what i'm really excited you like a good piece of toast i

understand i'm heading home getting me a toaster as soon as i do this debt-free screen that's awesome it's uh yeah it was it was totally worth it definitely um i mean it was just hard probably the hardest thing for me being the nerd is realizing like my way is not exactly the right way you know you know kind of slow down and bring in the free spirit and kind of work together and realize it's okay once we finally decide like okay this is what we're both going to do and then go for it yeah very cool all right what do you tell people the key to getting out of debt is you paid off your house and everything by what age uh she i just turned 40 and i turned 45 okay you're really young you have paid four houses

yep this is pretty cool what's this house worth uh i think it's about 200 250 yay somewhere around there feels pretty good doesn't it oh yeah okay so what's the secret to getting out of debt house and everything a lot of people think they'll have a mortgage their whole lives yeah no you want to take that one um just really getting on the same page and deciding what you want to do and um i mean that's it's pretty much it for me i think by that she means the free spirit gets on the nerd page i think and me calming down too you know i can be a bit intense yeah so you give a little grace and he and he tightens up a little bit and we meet in the middle there and because we have a shared goal yes and the goal is uh to be dead free house

and everything and now you can do anything you want to do including get a new toaster there you go there we go happy about that sounds like a good plan so if you live like no one else later you can live and give like no one else can get a toaster i thought you were gonna say if you live like no one else later you can live and give like no one else can get a toaster i thought you were gonna say if you live like no one else later you can live and eat toast like no one else i'm looking for i all of a sudden i'm thinking about a piece of toast tomorrow morning i mean it's something i haven't had in a while come on ken i'm serious i'm telling you who doesn't love a good new toaster i love it way to go you guys way go. We're very proud of you. All right, bring the kiddos in. Tell us their names and ages. So we have Hannah, that's 14.

Elena is 12. Evie is 10. And then Dylan is 7. All right. And so the 10-year-old is ready to go here. Yes. This is that free scream that matches. I love it.

Yes. Very cool. I love it. Good stuff, you guys. Thank you. We got a copy of Baby Steps Millionaires for you, How Ordinary People Built Extraordinary Wealth, How You Can Too.

That is the next chapter in your story. You've done all the stuff. You're Baby Step 7. You're ready to go. You're going to be unbelievably wealthy. It's going to blow your mind where this ends up if you stay on track. So I'm very proud of you. Also a copy of Total Money Makeover for you guys to give away

and be a blessing to someone. Stir up a ruckus somewhere with that for me. Absolutely. That's what I like doing, stirring up a ruckus. I'm pretty good at it, too. All right, Reba and Michael, Hannah, Eleni, Evie, and Dylan from Louisville, Kentucky. $138,000 paid off in 10 years. That's their house and everything.

They're weird people. $104,000 to $133,000 income. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Yeah! This is how it's done.

Oh, my goodness. That's powerful. Okay, so she cleans houses and he drives a truck they're 45 years old and they have paid for 250 000 house i don't know what neighborhood you grew up in but my neighborhood we call that impressive yes yes that's pretty amazing oh yeah and so you know you know you don't have to be making 500 000 a year some kind of specialist doctor or something to do this stuff. People are doing it every day from every walk of life in every area of the country in every situation. They're making the decision to be intentional and turn this thing around.

It's very, very possible. And, you know, you've got to get on the same page. We always hear that. You've got to be on a budget. We always hear that. You know, you've got to – The communication in a marriage is always vital. These are the ones that always come up over and over and over and over and over again. You can watch literally now thousands of debt-free screams on YouTube that are posted there,

and there is a track that runs through all of them. Yeah, it's really true. And, you know, it's always special to see a family with younger kids reach this moment, this pinnacle, because now we're talking about their future and how it affects how they grow up. I mean, they've got kids that are preteens, they've got teens, and it changes everything for this family. It's not just the financial piece. I mean, that's worth it in and of itself. But the ability to then craft a future.

I don't want people to miss what you say all the time. This idea of live like no one else live and give that's giving to their kids. That's giving obviously in their community. And I got to tell you, I love that the truck driver and the small business owner, you know, cleaning houses, untold amount of hours. She probably worked and just it's a phenomenal testimony to struggling now to prosper later. You know, and everybody wants to prosper. Few are willing to struggle.

Yeah, you got to do the thing, man. I mean, no one wins on accident. It is a series of intentional decisions developing into habits, developing into just, you know, redefining who I am. I'm not that person anymore. I used to be that guy, but I'm not that guy anymore. And I used to be a guy with a mortgage.

Now I'm not a guy with a mortgage. I like that. That's pretty cool. That's pretty cool stuff. This is The Ramsey Show. We'll see you next time. Thank you. Again, Coleman Ramsey personality is my co-host today as we take your questions about work that you love, how you build wealth, and how you create real relationships. Stephanie's with us in Louisville, Kentucky. Hi, Stephanie. Welcome to The Ramsey Show.

Hi, thanks for having me. Sure, what's up? Well, so COVID was actually a kind of lucky thing for us. Right at the very beginning, we were able to buy our first rental property right when rates were low, but before housing prices just skyrocketed. It came with a two bedroom house and a three bedroom with an extra office that they've been using as a fourth bedroom double wide. The regular house, it didn't really need a whole lot of work, even though it hadn't been lived in in a while. So we threw some paint on it, did a couple of small things,

and I've been renting it out. I would like to fix up the double wide. It needs a lot of work, though. And since this is new to me, my husband grew up flipping houses, and he doesn't really want to participate beyond giving advice. So this is kind of my little project. But I don't really know where to draw the line as far as how much to cash flow for it, because at the end of the day, it's still a double-wide. But I think that it would be, I mean, it's already there and I'd like to get more rental income out of it. And I think, you know, long-term it might be a good thing. You know, I don't want

to be a slumlord, but I don't want to make it the Taj Mahal either because it's still going to be a 30-year-old double wide. So I'm not sure, sure i guess just how to go about that is there like a certain number as far as how much i should put it you know that should be my absolute cap as far as what to put into it um well what you have to what you have to consider is is that the long-term play is the thing's worth zero yeah that's where it's going yeah i can't imagine it'll be there's a day there's a day that they don't go up in value they go down in value period yeah okay so there's a day that it's worth zero so that that tells us that's a different formula than fixing up the house which is going up in value okay yeah and so it's a different different

way of looking at it and so forth what do you think you could rent it for if it was fixed up? If it's three bedrooms, I could probably get $1,500 to $1,800. If it's four, somewhere in the $1,600 to $1,200 range. Okay, let's call it $1,500 a month. Yeah. Wow. Okay, that's an impressive figure. All right, so we're going to get $1,500 a month.

And what would you talk about spending on it? Because basically here's, let me go ahead and limit you. All right? You want to recoup it fast with $1,500 a month. Because your other option is sell it and move it off the property before it goes down in value further. Yeah. If you're going to keep it, you're going to burn it to the ground, like driving a car into the ground kind of thing.

And so you want to recoup everything that you put in it with cash flow off the rental. And so if you're making $18, dollars on it and you spend thirty six thousand dollars on it it's two years for you can get your money back and it's not going up in value it's going down in value so this is a pure i'm going to trade some cash up front for a fifteen hundred dollar a month income that will last for a while okay so i'm going to go and tell you your limit is a max of 30 okay how much have you got to spend on it well i my gut tells me we you know i don't want to put more than about 50 into we've already got 30 put away um for just kind of whatever we happen if i were in your shoes i wouldn't put over 20 25 25 in it. Okay. I'm going to fix it.

Because basically you're trading that 20, 25. You're going to get that back, and only then are you making money. And from then on, that's the money that you make until it goes down to complete seed. And it's going to go down to seed. How many square feet is the double wide? It's big. It's bigger than my house. It's 1,800 square feet.

Okay. What could you sell it for today? Somebody move it off the property. Three to five range because someone actually was interested in it and got a quote for $15,000 to actually move it. It's not really habitable right now. It's got a lot of holes in the walls and a skylight that's leaking. But if we were to fix that, it would take out. I'm going to change my mind.

This is a piece of trash. I'm going to sell it. Okay. You don't want to deal with what this is going to be for the next eight years, ten years. It's going to be a constant headache. It's just going to be a problem, and it's not going up in value. I'm going to sell it for five.

I'm going to take the 30 to 50 that I was thinking about spending in the wrong place, and I'm going to build a little property up there or something that goes up in value. That's exactly where I was leaning, Dave, is what could you build? If you want a rental property that bad, what could you build over time? Yeah. That's going to... Build on the same yeah foundation that's very well not necessarily foundation but maybe maybe use the same septic system or the underground utilities that got there some of the some of the infrastructure

there and um i'm just going to be thinking that way even if it takes me two or three more years to save up and spend 100 on something up there i don't care whatever you want to do but i just want to think i always buy real estate with a 20 year 50 year mindset i never buy it with a two-year mindset okay i just don't do it i and consequently the number of pieces of real estate i have sold in the last 30 years is one, two, three. I've sold three pieces of real estate. Everything else I have bought, I've kept. And that's the way you make money in real estate. You don't make money in real estate.

Now, you can make money flipping properties, but you don't make money in real estate with double wides. Now, you do make money in real estate with double wides if you buy them on cash-on-cash basis. And the cash you put in, like I know a guy who owns a trailer park, okay? And that thing prints money, okay? But, you know, he's got $5,000 trailers all over this park, you know, so like $50,000 or $100,000 worth of these things sitting there, and the stinking thing's throwing off $50,000 or $100,000 a year. Right.

So he doesn't care if they're going up in value. He doesn't care if they're going down in value. Sure didn't care if they're going down in value sure but basically the thing is gradually deteriorating back to the earth that's right that's right it's not going to be worth anything i just wonder with the husband having a background in this and she seems like she was going to do the work he knows i wonder what they could build a 1200 square foot building for i i don't you know it'll take a lot these days yeah but yeah but still yeah i'm just going to go that direction long term. I'm not screwing with this thing if it's me. You do whatever you want to do.

I'm not stuck up. It's just a matter of math for me. Bethany is in Fort Wayne, Indiana. Hi, Bethany. How are you? Good. How are you? Better than I deserve.

What's up? My husband and I are on baby step four and five, and we've got three kids. He's looking at a career change that would take us back to school for about five years. My husband and I are on baby step four and five, and we've got three kids. He's looking at a career change that would take us back to school for about five years. Five years? Yes. What's he studying? Doctorate in psychology, so society. Okay.

So he wants to be a psychologist? Yes. Okay. Anyway, so we're saving to go back to school. We're assuming that he won't be able to work full-time while he's in school so we're just trying to save up as much as possible why and i was um he can work full-time and complete a doctorate in five years sure he could has he got his undergrad um yes but it's in engineering so engineering, so it's a big career change. Okay.

Well, I've got two little kids. I'm doing this at night, and it maybe takes me six years, but I think you can do it in four and do it part-time. I mean, it does not take that to get a doctorate. You've got to do some undergrad studies to get some foundational things, some prereqs under your belt, and then you've got to go do the grad work, and then you've got to go through the doctoral process, and that can take some time. But I'm going to roll up my sleeves and knock this out, but I'm not quitting my job. No, absolutely not.

He doesn't have to do that. And you guys need to dive in and get a lot of research and a lot of confidence and the clarity behind that. But that's absolutely,ave's absolutely right and it might delay a little bit but it's also gonna the return in the delay is that there is no interruption of income and you guys aren't unnecessarily sacrificing financially now he's going to sacrifice some sleep but it's worth it yeah you have to go get to live his dream but yeah i i know i'm going to sort of goof around at this, and I'm going to work part-time, and my family's going to starve while I do it.

No, not something I'm signing up for. No, I think we're going to roll up our sleeves and get some stuff done here. Again, that's what we do at the Ramsey House, and that's how we answer it here. This is The Ramsey Show. Hey folks, Ken Coleman here. Did you know The Ramsey Show is one of the most popular podcasts in the world? It's your daily dose of advice on life and money. Check out all of our shows from The Ramsey Network wherever you listen to podcasts.