All Forum Posts by: Account Closed

Spending hypothetical money is completely different than spending your own. There are a lot of people with $10M and none of them would put it into a single asset class. This kind of speculative thinking gives no actual valuable insight into anything at all.

Its simple. If you get 1% rent ratio with 50% expense ratio then your net income is 6%. If you want 100,000 per year net you need 100k/0.06 =  approx $1.7M of paid of real estate. If your market average home was 200K value, then you need 8-9 paid of homes yielding 6%. That doesn't seem insurmountable. The key words here are paid off. In that scenario each home generates about 1200 per month in cash flow. Now if you are leveraged and get only 200 per month then well, you need over 50 leveraged homes. 

So could you reasonably purchase and pay off 8-9 homes in 15 years or less? I think you can. Can you scale to 50+ homes and keep all the plates spinning, less likely.

Ok, now you can tell me how stupid I am to pay off homes in the era of 2% mortgages :-)

How many years of cash flow at $100/month to pay off that truck? Lets be honest. Nobody needs a truck just because they own some rentals. You want a truck and just looking for ways to justify it to yourself. Its nothing to do with the rentals. If you have a spare 40K laying around with no other good use, sure buy a truck. If you want to build long term wealth that truck represents everything wrong with your thinking.

Ive got it penciled in my calendar for 14 Jun 2022. Doesn't everyone know the date ?!

If you have a 100 units then maybe you can get a deal. Or set up your own company. But as a typical Mom and Pop investor you are at the PM's mercy. Id say look for honesty and efficiency as the most important characteristics. Cost will not vary much on paper but in real life how they  screen, reduce turnover, handle maintenance, and evictions and rent increases will truly determine their cost and value.

Do it. Ignore the math. Because the math never includes risk or peace of mind. You will rest easier and reduce your stress. I have done the same and never felt an ounce of regret doing it.

Glad you are making progress but its not kosher to count LP syndications as "doors". Even if you are a GP you own a small fraction of those "doors". So if you own 1% of 300 doors as a LP its just one door really and not even that as you dont have control of when to sell it. Otherwise I am the proud owner of several thousand doors and I really dont feel that rich!

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The tax code (and all the rest of the laws) are written by the rich for the benefit of the rich. Especially after Reagan the government gave up even the pretense of caring about the people. So how to counter that? I dont think paying more taxes helps.It just gets fed to large corporations and billionaires through hidden subsidies or blown on useless foreign wars and military expenditures with a tiny fraction going to things people actually need.  Political action and voting might but the system is very corrupt and entrenched. Revolution may be a step too far :-). So I dont know.

As others have said, you can make your money by saving on taxes but nothing stops you from using that money in any way you feel is good. 

Maybe. But I bet you I can find a better less complicated and cheaper way to get all the above benefits with a combination of term life (for actual insurance) and investing the rest in a brokerage in Roth IRAs and taxable accounts invested in simple index funds which you can also borrow tax free against. In general the more complex the contract the less benefit you as a consumer will gain. Term life is a simple contract. You pay a premium and if you die your beneficiaries get paid. It is no different than your car insurance or homeowners insurance. Offloading risk. Anything else is not insurance.