All Forum Posts by: Account Closed

I would focus on not losing the $500k.  

$400k - Vanguard Total Stock Market (6% per year throws off about $24k passively.  Made up of a little under 2% REITs.)

$100k - RE 

@William D. - I think the answer you are looking for is - I doubt it.  I do not believe lenders will let you use potential rental income to help you qualify for the loan.

You will need to finance this through your personal credit and come to the table with at least 20% down.  

I hope this helps. 

@William D. - It depends.  Do you plan to pay all cash?  Would you like to put down more than 20%?  If you are financing a deal, you typically need 20% or more downpayment.   

You spend 60+ hours a week focused on investing for others.  Think of what you can do if you just dedicate a few hours per week investing for yourself.  Find the time, make a plan, and follow the plan. 

I agree with @Caleb Heimsoth.  I would not mess with the 401k.  Consider the consequences if you pull this money out:  taxes, compounding interest, etc.  

I would suggest not buying real estate at this time and focus on increasing your W2 income.  What if you made an extra five figures per year and still maintained your current lifestyle?  What if you need cash from a curveball life will throw at you and all of your cash is tied up in real estate?  Consider risk management...

FYI - I live in Brooklyn and I’m currently in the process of getting my first rental via turnkey.

I will catch you all at the next meeting.  I'm currently in my hometown of Little Rock, AR looking at turnkey's.  :)

Disclaimer:  I am a Boglehead junkie. 

As @William Jenkins said, "any prudent person would have part of their net worth in both."

I do not own any RE, but I'm looking at my first SFH via turnkey. I would love to toss my downpayment into Vanguard Total Stock Market, but I have already committed to REI. So, I will test the waters.

If I had more access to tax-advantaged accounts I would definitely take advantage of those prior to touching RE. 

$12.5k - vanguard total stock market index fund

$12.5k - keep in cash 

$25k - downpayment on sfh

@Sherri Schmonsky - Are these stocks inside a Roth IRA or taxable account?