New Dentist looking to create a retirement plan for myself thru real estate
New to Real Estate · Kansas City MO · Member since 2024 · 1 post · 4 votes
New Dentist looking to create a retirement plan for myself thru real estate
Most Popular Reply
Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votesReal estate does not pay you well if you need the income for the first few years. The only real, dependable income comes from a property that is a lot of work (well performing short term rental), one that is paid off, or one that you have owned for a long time to see rent appreciation.
I look at real estate as fixed income with the goal of 50/50 fixed income (real estate) vs. index funds. If you are looking for an additional resource, I recommend looking into Wes Moss's work. His roadmap for retirement is $500k liquid assets, paid off primary home, and more than 1 income source (real estate, part time job, social security if old enough, etc.). That seems to be a pretty realistic view. The "retire off of real estate" crowd on the internet mostly spouts nonsense or has something to sell.
I have nothing to sell and would be happy to help if you think that I can be a resource. I was fortunate enough to hit financial independence/early retirement a year ago at 42 with a family to support. It was mostly due to my day job income and low cost of living over a long period of time; however, real estate accounts for about 50% of our income through a small portfolio of short, mid, and long term rentals.
16 Replies
- 1yTim DelaneyPro MemberBuffalo, NY · Member since 2018 · 790 posts · 530 votes
Welcome Kyle. Depending on how much time you have to commit to real estate (or want to considering your dollar per hour is probably better spent in dentistry) you may want to consider becoming in LP in a real estate syndication deal. After getting the operators and the deal it is pretty passive. BP also launched Passive Pockets podcast and platform where you can learn more about this.
- Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes1y
Happy to chat. I would say suburbs would be ideal for you. They have higher appreciation, better tenants and great long term wise. There is a ton of areas so I would start with where you are located at, within a 30 min drive
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes1y
Quote from @Kyle Jenson:
Hello guys, I found this page through the podcast and the book, Rental Property Investing. Like my title says, I am a dentist in the Kansas City area and am looking at real estate to be my retirement plan. I have been reading many books on finances, rentals, and real estate and feel this is an area I can have more "control" over my investment rather than placing it all in my 401k and hoping for the best.
With that said, I am in the position where I will not need a monthly income from my rentals. Just looking for some stability and great ways to build equity. Obviously cash flow would be wonderful, but not necessarily needed. I have listened to a podcasts with other doctors talking about this, Anywhere else I can find info or advice or strategies on similar situations? Thank you all.
Kyle
You can find advice here, passive pockets and there are plenty of podcasts out there talking real estate. There are also a lot of different options in real estate to single family residential, multifamily, commercial, NNN and then being on the debt side of being the lender which has cash flow but not appreciation.
I recommend continuing to learn pros and cons of each and determine which paths (I pluralize it as you should diversify even across real estate).
7e investments53 Reviews - Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes1y
What are you looking to do? Do you want to own your own real estate like an apartment or retail center and create a side business? Are you looking to eventually quit being a dentist? Do you want time freedom?
There are many paths, but it all depends on your goals. If you want to control real estate that is active. It's a great path, but it takes time and energy. If you want some of the benefits, but less control and less time commitment, then go the passive route and invest in a syndication or note.
- 1yTravis TimmonsPro MemberRental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
Real estate does not pay you well if you need the income for the first few years. The only real, dependable income comes from a property that is a lot of work (well performing short term rental), one that is paid off, or one that you have owned for a long time to see rent appreciation.
I look at real estate as fixed income with the goal of 50/50 fixed income (real estate) vs. index funds. If you are looking for an additional resource, I recommend looking into Wes Moss's work. His roadmap for retirement is $500k liquid assets, paid off primary home, and more than 1 income source (real estate, part time job, social security if old enough, etc.). That seems to be a pretty realistic view. The "retire off of real estate" crowd on the internet mostly spouts nonsense or has something to sell.
I have nothing to sell and would be happy to help if you think that I can be a resource. I was fortunate enough to hit financial independence/early retirement a year ago at 42 with a family to support. It was mostly due to my day job income and low cost of living over a long period of time; however, real estate accounts for about 50% of our income through a small portfolio of short, mid, and long term rentals.
- 1yMilton ChamberlainPro MemberReal Estate Agent · Kansas City, MO · Member since 2019 · 236 posts · 107 votes
Hi Kyle,
My wife is a dentist and the proud owner of Vitality Dental in the Northland of Kansas City. After graduating in 2015, we moved to Oahu, where she completed a one-year AEGD program. In 2016, we returned to KC and purchased our primary home in Liberty using a Doctor’s loan.
In 2020, we developed a strong interest in real estate investing. I got my realtor license in 2021, and that same year, we purchased three single-family homes using investor loans. We fully remodeled two of them, taking them down to the studs. These properties are now rented as long-term rentals, and we plan to expand our portfolio while also branching into short-term rentals.
Looking back, I realize how much my current knowledge and experience could have fast-tracked our success. Hindsight is 20/20, and my education (courtesy of the school of hard knocks called Life) has shaped my approach to real estate investing and how I help others achieve their goals.
Since 2021, I’ve been working full-time in real estate, specializing in assisting both local and out-of-state investors in acquiring small multi-family properties and short-term rentals.
I would love to meet up with you and further discuss your REI interests and goals.
- Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes1yThe couple of wealthy dentists I know, started by buying the building their practice was in.
Quote from @Kyle Jenson:
Hello guys, I found this page through the podcast and the book, Rental Property Investing. Like my title says, I am a dentist in the Kansas City area and am looking at real estate to be my retirement plan. I have been reading many books on finances, rentals, and real estate and feel this is an area I can have more "control" over my investment rather than placing it all in my 401k and hoping for the best.
With that said, I am in the position where I will not need a monthly income from my rentals. Just looking for some stability and great ways to build equity. Obviously cash flow would be wonderful, but not necessarily needed. I have listened to a podcasts with other doctors talking about this, Anywhere else I can find info or advice or strategies on similar situations? Thank you all.
Kyle
- 1yIan IppolitoBusiness MemberInvestor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
Quote from @Kyle Jenson:
Hello guys, I found this page through the podcast and the book, Rental Property Investing. Like my title says, I am a dentist in the Kansas City area and am looking at real estate to be my retirement plan. I have been reading many books on finances, rentals, and real estate and feel this is an area I can have more "control" over my investment rather than placing it all in my 401k and hoping for the best.
With that said, I am in the position where I will not need a monthly income from my rentals. Just looking for some stability and great ways to build equity. Obviously cash flow would be wonderful, but not necessarily needed. I have listened to a podcasts with other doctors talking about this, Anywhere else I can find info or advice or strategies on similar situations? Thank you all.
Kyle
My father-in-law did this by creating a portfolio that is primarily debt-free single-family rentals in the city he lives in. And I copied that idea for the core of my portfolio (although I also invest in alot of passive deals as well, in the satellite portion for a core-satellite approach).
The idea of debt-free is that if a person is going to retire and has to completely depend on the income, they don't want a severe recession surprising them and causing them to default on the debt and losing the properties.
The Real Estate Crowdfunding Review - Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes1y
Quote from @Ian Ippolito:
Quote from @Kyle Jenson:
Hello guys, I found this page through the podcast and the book, Rental Property Investing. Like my title says, I am a dentist in the Kansas City area and am looking at real estate to be my retirement plan. I have been reading many books on finances, rentals, and real estate and feel this is an area I can have more "control" over my investment rather than placing it all in my 401k and hoping for the best.
With that said, I am in the position where I will not need a monthly income from my rentals. Just looking for some stability and great ways to build equity. Obviously cash flow would be wonderful, but not necessarily needed. I have listened to a podcasts with other doctors talking about this, Anywhere else I can find info or advice or strategies on similar situations? Thank you all.
Kyle
My father-in-law did this by creating a portfolio that is primarily debt-free single-family rentals in the city he lives in. And I copied that idea for the core of my portfolio (although I also invest in alot of passive deals as well, in the satellite portion for a core-satellite approach).
The idea of debt-free is that if a person is going to retire and has to completely depend on the income, they don't want a severe recession surprising them and causing them to default on the debt and losing the properties.In a normal world, I would do that as well. We are not in a normal world. Between now and the time you retire, there will be a couple of severe recessions and likely serious inflation. The national debt is approaching $36,000,000,000,000 if the government numbers are to be believed. In addition, the debt of each state is crippling. The US Government and the States have but one way to deal with this, taxes. Or, they can let the system implode and reset.
Property owners are a prime source for collecting revenue. What is the point behind having paid off real estate, if you lose it later in life to oppressive taxes? I buy real estate but I carry debt which is actually tax deductible, my money works for me. I can release my properties without much loss if I have to. Since I focus on cash flow, I already have the benefits afforded to real estate. Divorce is the number one destroyer of wealth. Plan on staying married no matter how rocky it gets, work through it, it's worth it. It isn't having paid off properties that offers security, there are still taxes, insurance, maintenance and management involved. Ask the people in Florida who now have sky high insurance and mandatory unplanned assessments, how much value having a paid off property is. It's properly leveraging (not over leveraging) the asset that pays off. - 1yIan IppolitoBusiness MemberInvestor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
Quote from @Ken M.:
Quote from @Ian Ippolito:
Quote from @Kyle Jenson:
Hello guys, I found this page through the podcast and the book, Rental Property Investing. Like my title says, I am a dentist in the Kansas City area and am looking at real estate to be my retirement plan. I have been reading many books on finances, rentals, and real estate and feel this is an area I can have more "control" over my investment rather than placing it all in my 401k and hoping for the best.
With that said, I am in the position where I will not need a monthly income from my rentals. Just looking for some stability and great ways to build equity. Obviously cash flow would be wonderful, but not necessarily needed. I have listened to a podcasts with other doctors talking about this, Anywhere else I can find info or advice or strategies on similar situations? Thank you all.
Kyle
My father-in-law did this by creating a portfolio that is primarily debt-free single-family rentals in the city he lives in. And I copied that idea for the core of my portfolio (although I also invest in alot of passive deals as well, in the satellite portion for a core-satellite approach).
The idea of debt-free is that if a person is going to retire and has to completely depend on the income, they don't want a severe recession surprising them and causing them to default on the debt and losing the properties.In a normal world, I would do that as well. We are not in a normal world. Between now and the time you retire, there will be a couple of severe recessions and likely serious inflation. The national debt is approaching $36,000,000,000,000 if the government numbers are to be believed. In addition, the debt of each state is crippling. The US Government and the States have but one way to deal with this, taxes. Or, they can let the system implode and reset.
Property owners are a prime source for collecting revenue. What is the point behind having paid off real estate, if you lose it later in life to oppressive taxes? I buy real estate but I carry debt which is actually tax deductible, my money works for me. I can release my properties without much loss if I have to. Since I focus on cash flow, I already have the benefits afforded to real estate. Divorce is the number one destroyer of wealth. Plan on staying married no matter how rocky it gets, work through it, it's worth it. It isn't having paid off properties that offers security, there are still taxes, insurance, maintenance and management involved. Ask the people in Florida who now have sky high insurance and mandatory unplanned assessments, how much value having a paid off property is. It's properly leveraging (not over leveraging) the asset that pays off.
Ken, Actually both myself and my father-in-law have properties in Florida. So I don't need to "ask people in Florida" about your theories. :)
And you're entitled to your opinion.
In my opinion, the national debt is a medium-term problem. And there are many possible ways that can be resolved and most don't involve hiking up property taxes so high that most people can no longer afford to be a landlord.
But let's assume you're right and this is about to happen.
In the situation you're describing, all the leveraged owners of real estate will be the *first* ones to implode right off the bat (and have to turn over the keys to the bank). Look how many died in the Great Recession which was nothing as severe.
On the other hand, the debt-free ones will be in a much stronger and better position to survive (because they have no debt payments to make). So, you're actually making the argument *against* debt (not for it).The Real Estate Crowdfunding Review - Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes1yI think you mis-understand debt, risk and the alternatives. If I put all of my eggs in one basket (Florida in this case), paid off property and a hurricane blows everything away, FEMA is nowhere to be found and the insurance companies take years to pay what little claims they actually do pay, I suffer through it in a blown out house. Currently being experienced by plenty of Floridians.
Quote from @Ian Ippolito:
Quote from @Ken M.:
Quote from @Ian Ippolito:
Quote from @Kyle Jenson:
Hello guys, I found this page through the podcast and the book, Rental Property Investing. Like my title says, I am a dentist in the Kansas City area and am looking at real estate to be my retirement plan. I have been reading many books on finances, rentals, and real estate and feel this is an area I can have more "control" over my investment rather than placing it all in my 401k and hoping for the best.
With that said, I am in the position where I will not need a monthly income from my rentals. Just looking for some stability and great ways to build equity. Obviously cash flow would be wonderful, but not necessarily needed. I have listened to a podcasts with other doctors talking about this, Anywhere else I can find info or advice or strategies on similar situations? Thank you all.
Kyle
My father-in-law did this by creating a portfolio that is primarily debt-free single-family rentals in the city he lives in. And I copied that idea for the core of my portfolio (although I also invest in alot of passive deals as well, in the satellite portion for a core-satellite approach).
The idea of debt-free is that if a person is going to retire and has to completely depend on the income, they don't want a severe recession surprising them and causing them to default on the debt and losing the properties.In a normal world, I would do that as well. We are not in a normal world. Between now and the time you retire, there will be a couple of severe recessions and likely serious inflation. The national debt is approaching $36,000,000,000,000 if the government numbers are to be believed. In addition, the debt of each state is crippling. The US Government and the States have but one way to deal with this, taxes. Or, they can let the system implode and reset.
Property owners are a prime source for collecting revenue. What is the point behind having paid off real estate, if you lose it later in life to oppressive taxes? I buy real estate but I carry debt which is actually tax deductible, my money works for me. I can release my properties without much loss if I have to. Since I focus on cash flow, I already have the benefits afforded to real estate. Divorce is the number one destroyer of wealth. Plan on staying married no matter how rocky it gets, work through it, it's worth it. It isn't having paid off properties that offers security, there are still taxes, insurance, maintenance and management involved. Ask the people in Florida who now have sky high insurance and mandatory unplanned assessments, how much value having a paid off property is. It's properly leveraging (not over leveraging) the asset that pays off.
Ken, Actually both myself and my father-in-law have properties in Florida. So I don't need to "ask people in Florida" about your theories. :)
And you're entitled to your opinion.
In my opinion, the national debt is a medium-term problem. And there are many possible ways that can be resolved and most don't involve hiking up property taxes so high that most people can no longer afford to be a landlord.
But let's assume you're right and this is about to happen.
In the situation you're describing, all the leveraged owners of real estate will be the *first* ones to implode right off the bat (and have to turn over the keys to the bank). Look how many died in the Great Recession which was nothing as severe.
On the other hand, the debt-free ones will be in a much stronger and better position to survive (because they have no debt payments to make). So, you're actually making the argument *against* debt (not for it).
However, if I take my resources and spread it around, I can weather bad times better. That's my point. If I have highly leveraged properties, as long as they cash flow, the bank takes the risk with me. I could lose my Florida house in a hurricane and move into my North Carolina house or my Tennessee property. If my Tennessee property gets hit by a tornado, I can move to my Alabama place. Plus, I get to experience all kind of great people, food and culture in the meanwhile. - 1yIan IppolitoBusiness MemberInvestor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
Quote from @Ken M.:
I think you mis-understand debt, risk and the alternatives. If I put all of my eggs in one basket (Florida in this case), paid off property and a hurricane blows everything away, FEMA is nowhere to be found and the insurance companies take years to pay what little claims they actually do pay, I suffer through it in a blown out house. Currently being experienced by plenty of Floridians.Quote from @Ian Ippolito:
Quote from @Ken M.:
Quote from @Ian Ippolito:
Quote from @Kyle Jenson:
Hello guys, I found this page through the podcast and the book, Rental Property Investing. Like my title says, I am a dentist in the Kansas City area and am looking at real estate to be my retirement plan. I have been reading many books on finances, rentals, and real estate and feel this is an area I can have more "control" over my investment rather than placing it all in my 401k and hoping for the best.
With that said, I am in the position where I will not need a monthly income from my rentals. Just looking for some stability and great ways to build equity. Obviously cash flow would be wonderful, but not necessarily needed. I have listened to a podcasts with other doctors talking about this, Anywhere else I can find info or advice or strategies on similar situations? Thank you all.
Kyle
My father-in-law did this by creating a portfolio that is primarily debt-free single-family rentals in the city he lives in. And I copied that idea for the core of my portfolio (although I also invest in alot of passive deals as well, in the satellite portion for a core-satellite approach).
The idea of debt-free is that if a person is going to retire and has to completely depend on the income, they don't want a severe recession surprising them and causing them to default on the debt and losing the properties.In a normal world, I would do that as well. We are not in a normal world. Between now and the time you retire, there will be a couple of severe recessions and likely serious inflation. The national debt is approaching $36,000,000,000,000 if the government numbers are to be believed. In addition, the debt of each state is crippling. The US Government and the States have but one way to deal with this, taxes. Or, they can let the system implode and reset.
Property owners are a prime source for collecting revenue. What is the point behind having paid off real estate, if you lose it later in life to oppressive taxes? I buy real estate but I carry debt which is actually tax deductible, my money works for me. I can release my properties without much loss if I have to. Since I focus on cash flow, I already have the benefits afforded to real estate. Divorce is the number one destroyer of wealth. Plan on staying married no matter how rocky it gets, work through it, it's worth it. It isn't having paid off properties that offers security, there are still taxes, insurance, maintenance and management involved. Ask the people in Florida who now have sky high insurance and mandatory unplanned assessments, how much value having a paid off property is. It's properly leveraging (not over leveraging) the asset that pays off.
Ken, Actually both myself and my father-in-law have properties in Florida. So I don't need to "ask people in Florida" about your theories. :)
And you're entitled to your opinion.
In my opinion, the national debt is a medium-term problem. And there are many possible ways that can be resolved and most don't involve hiking up property taxes so high that most people can no longer afford to be a landlord.
But let's assume you're right and this is about to happen.
In the situation you're describing, all the leveraged owners of real estate will be the *first* ones to implode right off the bat (and have to turn over the keys to the bank). Look how many died in the Great Recession which was nothing as severe.
On the other hand, the debt-free ones will be in a much stronger and better position to survive (because they have no debt payments to make). So, you're actually making the argument *against* debt (not for it).
However, if I take my resources and spread it around, I can weather bad times better. That's my point. If I have highly leveraged properties, as long as they cash flow, the bank takes the risk with me. I could lose my Florida house in a hurricane and move into my North Carolina house or my Tennessee property. If my Tennessee property gets hit by a tornado, I can move to my Alabama place. Plus, I get to experience all kind of great people, food and culture in the meanwhile.Ken, You're changing the subject to something neither of us ever discussed.
The only thing you claimed was that having no-debt on a SFR property makes no sense, because of your theory that the government is going to be massively raising taxes on property owners to "oppressive" levels.
And what I said is that if this actually does happen, then properties with debt will actually be the *first* ones to go under ... and the ones without debt will be in the strongest and best position to survive. So you are actually disproving your point rather than proving it.
On this new topic, it sounds like you're not able to afford a diversified portfolio without taking on debt.
If so, that isn't everyone's situation (and is also not mine). But, if I were in that situation I would probably not be buying any directly owned properties at all (and would instead be investing in a diversified fund).
But everyone has their own unique financial situation, financial goals and risk tolerance. And good luck to whatever you choose to do.The Real Estate Crowdfunding Review - Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes1yUh, okay, I guess? - puzzled look %-) Lol
Quote from @Ian Ippolito:
Quote from @Ken M.:
I think you mis-understand debt, risk and the alternatives. If I put all of my eggs in one basket (Florida in this case), paid off property and a hurricane blows everything away, FEMA is nowhere to be found and the insurance companies take years to pay what little claims they actually do pay, I suffer through it in a blown out house. Currently being experienced by plenty of Floridians.Quote from @Ian Ippolito:
Quote from @Ken M.:
Quote from @Ian Ippolito:
Quote from @Kyle Jenson:
Hello guys, I found this page through the podcast and the book, Rental Property Investing. Like my title says, I am a dentist in the Kansas City area and am looking at real estate to be my retirement plan. I have been reading many books on finances, rentals, and real estate and feel this is an area I can have more "control" over my investment rather than placing it all in my 401k and hoping for the best.
With that said, I am in the position where I will not need a monthly income from my rentals. Just looking for some stability and great ways to build equity. Obviously cash flow would be wonderful, but not necessarily needed. I have listened to a podcasts with other doctors talking about this, Anywhere else I can find info or advice or strategies on similar situations? Thank you all.
Kyle
My father-in-law did this by creating a portfolio that is primarily debt-free single-family rentals in the city he lives in. And I copied that idea for the core of my portfolio (although I also invest in alot of passive deals as well, in the satellite portion for a core-satellite approach).
The idea of debt-free is that if a person is going to retire and has to completely depend on the income, they don't want a severe recession surprising them and causing them to default on the debt and losing the properties.In a normal world, I would do that as well. We are not in a normal world. Between now and the time you retire, there will be a couple of severe recessions and likely serious inflation. The national debt is approaching $36,000,000,000,000 if the government numbers are to be believed. In addition, the debt of each state is crippling. The US Government and the States have but one way to deal with this, taxes. Or, they can let the system implode and reset.
Property owners are a prime source for collecting revenue. What is the point behind having paid off real estate, if you lose it later in life to oppressive taxes? I buy real estate but I carry debt which is actually tax deductible, my money works for me. I can release my properties without much loss if I have to. Since I focus on cash flow, I already have the benefits afforded to real estate. Divorce is the number one destroyer of wealth. Plan on staying married no matter how rocky it gets, work through it, it's worth it. It isn't having paid off properties that offers security, there are still taxes, insurance, maintenance and management involved. Ask the people in Florida who now have sky high insurance and mandatory unplanned assessments, how much value having a paid off property is. It's properly leveraging (not over leveraging) the asset that pays off.
Ken, Actually both myself and my father-in-law have properties in Florida. So I don't need to "ask people in Florida" about your theories. :)
And you're entitled to your opinion.
In my opinion, the national debt is a medium-term problem. And there are many possible ways that can be resolved and most don't involve hiking up property taxes so high that most people can no longer afford to be a landlord.
But let's assume you're right and this is about to happen.
In the situation you're describing, all the leveraged owners of real estate will be the *first* ones to implode right off the bat (and have to turn over the keys to the bank). Look how many died in the Great Recession which was nothing as severe.
On the other hand, the debt-free ones will be in a much stronger and better position to survive (because they have no debt payments to make). So, you're actually making the argument *against* debt (not for it).
However, if I take my resources and spread it around, I can weather bad times better. That's my point. If I have highly leveraged properties, as long as they cash flow, the bank takes the risk with me. I could lose my Florida house in a hurricane and move into my North Carolina house or my Tennessee property. If my Tennessee property gets hit by a tornado, I can move to my Alabama place. Plus, I get to experience all kind of great people, food and culture in the meanwhile.Ken, You're changing the subject to something neither of us ever discussed.
The only thing you claimed was that having no-debt on a SFR property makes no sense, because of your theory that the government is going to be massively raising taxes on property owners to "oppressive" levels.
And what I said is that if this actually does happen, then properties with debt will actually be the *first* ones to go under ... and the ones without debt will be in the strongest and best position to survive. So you are actually disproving your point rather than proving it.
On this new topic, it sounds like you're not able to afford a diversified portfolio without taking on debt.
If so, that isn't everyone's situation (and is also not mine). But, if I were in that situation I would probably not be buying any directly owned properties at all (and would instead be investing in a diversified fund).
But everyone has their own unique financial situation, financial goals and risk tolerance. And good luck to whatever you choose to do. - Member since 2020 · 14 posts · 10 votes1y
Quote from @Kyle Jenson:
Hello guys, I found this page through the podcast and the book, Rental Property Investing. Like my title says, I am a dentist in the Kansas City area and am looking at real estate to be my retirement plan. I have been reading many books on finances, rentals, and real estate and feel this is an area I can have more "control" over my investment rather than placing it all in my 401k and hoping for the best.
With that said, I am in the position where I will not need a monthly income from my rentals. Just looking for some stability and great ways to build equity. Obviously cash flow would be wonderful, but not necessarily needed. I have listened to a podcasts with other doctors talking about this, Anywhere else I can find info or advice or strategies on similar situations? Thank you all.
Kyle
Hi Kyle,
Welcome to the world of real estate investing! As a fellow investor who’s also working full-time, I think you’re on the right track by looking into real estate as part of your retirement plan. It’s a fantastic way to diversify your portfolio and build long-term wealth.
A few pieces of advice:
- 1. Always prioritize cash flow – Even if you don’t need the income now, properties that cash flow will be much more resilient during market downturns or unexpected challenges. It also allows you to reinvest the returns into future properties, helping you scale faster.
- 2. Be conservative with your numbers – When using a cash-on-cash calculator, I recommend budgeting at least 10% for maintenance and repairs instead of 5%. This gives you a more realistic picture and protects you from unexpected surprises. Especially in Kansas City- where the properties tend to be older
- 3. Be patient with returns – In the first few years, don’t expect huge returns. Real estate is a long-term game, and your patience will pay off.
Since you’re a dentist, you may have a busy schedule, so consider working with a good property manager.
- 1yMackaylee BeachPro MemberReal Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
Quote from @Kyle Jenson:
Hello guys, I found this page through the podcast and the book, Rental Property Investing. Like my title says, I am a dentist in the Kansas City area and am looking at real estate to be my retirement plan. I have been reading many books on finances, rentals, and real estate and feel this is an area I can have more "control" over my investment rather than placing it all in my 401k and hoping for the best.
With that said, I am in the position where I will not need a monthly income from my rentals. Just looking for some stability and great ways to build equity. Obviously cash flow would be wonderful, but not necessarily needed. I have listened to a podcasts with other doctors talking about this, Anywhere else I can find info or advice or strategies on similar situations? Thank you all.
Kyle
Hi @Kyle Jenson! I'm also in Kansas City. There are so many great opportunities right in our backyard. In addition, there are many tax advantages to owning real estate that could off set your taxable income. Podcasts and audio books regarding real estate, taxes, etc are great resources.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.